Czechia
Czechia
February 25, 2024

Czechia's Electric Drive: Shifting Gears to Sustainable Fleet Dynamics

Charting the Course for Eco-Friendly Transportation in Czechia

Czechia's Electric Drive: Shifting Gears to Sustainable Fleet Dynamics
Czechia
February 25, 2024
Czechia's Electric Drive: Shifting Gears to Sustainable Fleet Dynamics
Charting the Course for Eco-Friendly Transportation in Czechia
Summary

Czechia's journey towards sustainable fleet management and vehicle electrification represents an essential step towards environmental sustainability and reduced carbon emissions. Despite facing challenges such as high vehicle costs and the need for more robust charging infrastructure, the country is making progress, supported by governmental initiatives and growing public interest in EVs. The transition towards electrification, facilitated by Czechia's moderate electricity emission factor, promises significant reductions in CO2e emissions and aligns with broader global sustainability goals. As Czechia continues to navigate the path towards a greener future, its efforts in promoting electric mobility offer valuable insights into the potential for transformative change within the transportation sector.

Country General Overview

Introduction

Czechia, also known as the Czech Republic, is a landlocked country in Central Europe with a rich history, advanced economy, and strategic location that serves as a crossroads for various European trade routes. The corporate fleet management sector in Czechia is essential for supporting the country's economic activities, including manufacturing, services, and export-oriented industries. With a focus on efficiency, innovation, and sustainability, Czechia's corporate sector leverages fleet management to enhance operational performance, reduce costs, and adhere to environmental standards.

Geographic and Infrastructure

Czechia covers an area of approximately 78,866 square kilometers, characterized by its varied landscape that includes mountains, forests, and rivers. The country boasts a dense and well-maintained road network of over 130,000 kilometers, including highways and regional roads that facilitate efficient transportation and logistics across the country and beyond its borders. This infrastructure is crucial for corporate fleet operations, enabling smooth logistics and connectivity for businesses within Czechia and with neighboring European countries.

Economic

With a GDP of over $250 billion and a population of about 10.7 million people, Czechia's economy is one of the most developed and industrialized in Central Europe. The country has a high vehicle penetration rate, with approximately 648 motor vehicles per 1000 people, reflecting the significant role of road transport in the economy. Efficient fleet management is vital in Czechia for reducing logistics costs, enhancing the delivery of goods and services, and supporting the competitiveness of Czech businesses both domestically and in the international market.

Environmental Considerations

Environmental sustainability is a priority in Czechia, as evidenced by its Environmental Performance Index (EPI) 2022 rank of 19 out of 180 countries, with a score of 59.9. This high ranking highlights Czechia's commitment to addressing environmental challenges, including air quality, waste management, and conservation efforts. For corporate fleet management, the environmental context underscores the importance of adopting green practices, such as using fuel-efficient vehicles, optimizing routes to minimize emissions, and incorporating renewable energy sources. By focusing on sustainability, Czech companies can contribute to the country's environmental goals, mitigate their ecological footprint, and align with global sustainability standards.

Sustainable Fleet Management

Scopes Data - Electrification Recommendation Rank Icon

Electrification Recommendation Rank

Czechia
's Category

Rank D : Low Emission, Possible for EVs

These are low emission countries with a possible environment for EV adoption, or high emission countries with a favorable environment for EVs. Transitioning to BEVs is somewhat limited. Pinpoint vehicles that are easy to adopt for BEVs and consider transitioning to hybrid electric vehicles (HEVs) if renewable electricity integration is challenging.

Same Category Countries

Bulgaria, Croatia, Czechia, Estonia, Greece, Japan, Lithuania, South Korea, Taiwan, Turkey, United States

Info:

The Electrification Recommendation is derived from two aspects: each country's EV Readiness assessment (based on factors such as Electric Vehicle market share, environmental consciousness, GDP, etc.), and the Electricity Emission Factor (EF). Even if a country has a low Electricity EF, enabling CO2e emissions reduction through transitioning to BEVs, the adoption of BEVs could be challenging if the country lacks adequate infrastructure or faces financial constraints.

Since every company operates in a unique environment, this recommendation might not apply in all cases. However, it can be useful for setting a general direction.

Scopes Data - CO2e From Electricity Icon

Electricity EF Category

Czechia
's Electricity EF

0.495

CO2e kg/kWh

Ref:

Association of Issuing Bodies (AIB) 2021 in 2020

Czechia
's Category

Rank 2 : Moderate Emission Countries (0.25 - 0.50 kg/kWh)

Info:

Countries with high Electricity EF have less benefit for electrification

  • Rank 1: 0.00 – 0.25 kg/kWh (About 0 – 38 CO2e g/km)
  • Rank 2: 0.25 – 0.50 kg/kWh (About 38 – 76 CO2e g/km)
  • Rank 3: 0.50 – 0.75 kg/kWh (About 76 – 113 CO2e g/km)
  • Rank 4: 0.75 – 1.00 kg/kWh (About 113 – 151 CO2e g/km)
  • Rank 5: More than1.00 kg/kWh (About more than 151 CO2e g/km)
Scopes Data - EV Readiness Icon

EV Readiness Category

Czechia
's Category

Rank 3 : Possible Environment for EV Adoption

Market Share information
Scopes Data - BEV Icon
2022 BEV

2

%

2023 BEV

2.7

%

Scopes Data - HEV Icon
2022 HEV

2.4

%

2023 HEV

2.7

%

Scopes Data - Non-ICE Icon
2022 Non-ICE

13.3

%

2023 Non-ICE

14.3

%

HEV: Only Full Hybrid Vehicles (Does not include
Mild Hybrid Vehicles)

Non-ICE: Total of BEV (Battery Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), HEV (Hybrid Electric Vehicles), and MHEV (Mild Hybrid Electric Vehicles)

2022 EPI Results
Rank

19

/180

Score

59.9

2022 EPI Results : Environmental Performance Index(EPI) provides a quantitative basis for comparing, analyzing, and understanding environmental performance for 180 countries.

Ref:Wolf, M. J., Emerson, J. W., Esty, D. C., de Sherbinin, A., Wendling, Z. A., et al. (2022). 2022 Environmental Performance Index. New Haven, CT: Yale Center for Environmental Law & Policy. epi.yale.edu

Introduction to Sustainable Fleet Management and Electrification Efforts

Czechia is progressively embracing sustainable fleet management and the electrification of vehicles as part of its commitment to environmental sustainability. Despite a slower adoption rate compared to some European counterparts, the country is witnessing a gradual shift towards Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs). This transition is bolstered by governmental incentives, an expanding network of charging stations, and growing public and corporate interest in reducing carbon footprints. The Czech Republic's efforts reflect a broader global movement towards greener transportation solutions, aiming to decrease reliance on fossil fuels and mitigate the impacts of climate change.

Current Vehicle Landscape: Preferences and Powertrain Segments

The Czech automotive landscape is characterized by a diverse mix of powertrain technologies, with a strong presence of Internal Combustion Engine (ICE) vehicles and a growing interest in electrified options. In 2023, BEVs and HEVs witnessed slight increases in market share, indicating a shift towards more sustainable transportation. Popular models such as the Skoda Enyaq iV and Toyota RAV4 highlight consumer and corporate preferences for electrified SUVs. Despite these trends, the market remains dominated by ICE vehicles, including leading models like the Skoda Octavia and VW Caddy. The Czech Republic's vehicle preferences reflect a transitional phase, balancing traditional automotive technologies with emerging electric and hybrid models, driven by environmental considerations and the evolving regulatory landscape.

Czechia

Grid.js Table

HEV: Only Full Hybrid Vehicles (Does not include
Mild Hybrid Vehicles)

Non-ICE: Total of BEV (Battery Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), HEV (Hybrid Electric Vehicles), and MHEV (Mild Hybrid Electric Vehicles)

Electric Vehicle Market Overview and Trends

Czechia's EV market is experiencing a period of growth, with BEV and HEV sales increasing year over year. In 2023, electric vehicles accounted for a modest but growing portion of new vehicle sales, supported by improvements in charging infrastructure and governmental incentives. Major Czech automaker Skoda is expanding its electric offerings, indicative of the industry's response to growing demand. However, the adoption rate remains lower than the European Union average, with EVs facing competition from petrol and diesel vehicles. The Czech government's efforts to promote electric mobility, including subsidies for electric and hydrogen vehicle purchases and infrastructure development, signal a commitment to fostering a more sustainable transportation sector.

Energy Context: Electricity Emission Factors and Implications for Electrification

Czechia's electricity production relies on a mix of renewable, nuclear, and fossil fuel sources, resulting in a moderate emission factor of 0.495 kg CO2e/kWh. This context offers a relatively favorable environment for vehicle electrification, allowing for significant reductions in CO2e emissions when transitioning from ICE to BEVs. The potential for a 50% to 75% reduction in emissions for compact vehicles highlights the environmental advantages of electrification within the Czech energy landscape. Ongoing efforts to increase the share of renewable energy sources in the electricity mix could further enhance these benefits, making EV adoption an increasingly compelling option for reducing transportation-related emissions.

Challenges and Opportunities in EV Adoption

The journey towards widespread EV adoption in Czechia presents both challenges and opportunities. High vehicle costs and insufficient charging infrastructure have historically limited EV uptake. However, the government's proactive stance, including financial incentives for EV purchases and infrastructure investments, is beginning to address these barriers. The Czech Republic's moderate electricity emission factor also positions it advantageously for electrification benefits. Additionally, the increasing environmental awareness among consumers and businesses, coupled with the global push towards sustainability, presents significant opportunities for growth in the EV market. The focus on expanding the electric and hybrid vehicle offerings by local and international automakers further supports this transition, promising a more sustainable future for Czech transportation.

Additional Insights: Shaping the Future of Transportation

The Czech Republic's approach to vehicle electrification is shaping a future where sustainable transportation plays a pivotal role in achieving environmental goals. With a moderate emission factor and a government committed to reducing emissions, Czechia is poised to make meaningful progress in electrifying its transportation sector. The expanding availability of EVs, coupled with infrastructure improvements and financial incentives, is setting the stage for a significant shift towards cleaner, more efficient vehicles. This transition not only aligns with global sustainability efforts but also reflects the country's potential to lead by example in the Central European context, contributing to a greener, more sustainable future.

Country Case Study

The "Base Fleet" percentage is set according to the sales ratio of each powertrain in Czechia for the year 2023. (For countries where sales ratios cannot be obtained, it is assumed all are ICE vehicles.) The "Recommended Fleet" is designed to be realistic (based on a rank determined by the Electricity Emission Factor Category and EV Readiness Category, deciding a practical range) and efficient in reducing CO2e emissions. It is not expected that the entire fleet will switch to this mix at once but rather after one or two renewal cycles over about 4 to 8 years, considering the usual fleet renewal period is around 4 years. This is viewed as a recommendation for the fleet composition in 4 to 8 years.

The calculation of CO2e emissions is based on a fleet of 100 vehicles traveling an average of 30,000 km per year. Therefore, if your company's fleet size in Czechia is 1,000 vehicles, multiplying the results by 10 will give you an approximate value. For fuel, it is assumed all vehicles use petrol (2345.02 CO2e g/L), and for electricity, the average emission factor of Czechia is used. For PHEVs, it is calculated assuming 50% electricity usage and 50% fuel usage.

Analysis of Fleet Transition from Current State to Sustainable Future

This refers to the average CO2e emissions per kilometer calculated based on the actual energy (Fuel and Electricity) used. It also takes into account the size of the vehicles used in Czechia's fleet.

Scopes Data - ICE Icon

ICE

(CO2e g/km)

Scopes Data - HEV Icon

HEV

(CO2e g/km)

Scopes Data - PHEV Icon

PHEV

(CO2e g/km)

Scopes Data - BEV Icon

BEV

(CO2e g/km)

ICE

HEV

PHEV

BEV

Czechia stands at a pivotal juncture in its journey towards sustainable corporate fleet management. Initially dominated by ICE vehicles, with 93 units reflecting a traditional reliance on fossil fuels, a strategic shift is underway. The recommended transition marks a significant move towards sustainability, drastically reducing ICE vehicles to 11 units. This shift is a testament to Czechia's commitment to environmental stewardship and aligns with broader global trends towards vehicle electrification.

The transition strategy introduces a marked increase in HEVs from 2 to 67 units, PHEVs from 3 to 8 units, and BEVs from 2 to 14 units. This shift not only reflects Czechia's environmental ambitions but also leverages the country's moderate electricity emission factor to effectively reduce the overall emissions footprint of the corporate fleet. The substantial increase in HEVs and the inclusion of BEVs and PHEVs underscore Czechia's readiness to embrace a more electrified future, supported by an evolving infrastructure and a regulatory environment conducive to green vehicles.

Analysis of CO2 Emission Reductions Through Fleet Transition

CO2e From Fuel  (Scope 1)

CO2e From Electricity (Scope 2)

Base Fleet Mix Case
Reasonable Recommended Fleet Mix Case

The strategic transition towards a more electrified fleet in Czechia represents a critical advancement in reducing corporate CO2 emissions. Originally, the fleet's emission profile was heavily skewed towards ICE vehicles, resulting in 333 tons of CO2 emissions. The proposed transition to a diversified fleet incorporating HEVs, PHEVs, and BEVs changes this scenario significantly.

Under the recommended fleet mix, emissions from ICE vehicles are dramatically reduced to 39 tons, while the inclusion of a larger number of electrified vehicles leads to a cleaner emission profile, with total CO2 emissions substantially reduced to 269 tons. This reduction underscores the effectiveness of Czechia's fleet transition strategy in exploiting the country's energy mix to maximize environmental benefits, showcasing a strategic pathway towards significant emission reductions.

Comparative Analysis of CO2e Emissions Across Fleet Scenarios

CO2e From Fuel  (Scope 1)

CO2e From Electricity (Scope 2)

Exploring various fleet scenarios offers insights into the potential environmental impact of different electrification strategies in Czechia. The base fleet mix, heavily reliant on ICE vehicles, established a benchmark of 350 tons of CO2e emissions. Transitioning to the recommended fleet mix, featuring a balanced distribution of ICE, HEVs, PHEVs, and BEVs, results in a substantial reduction in total emissions to 269 tons of CO2e, demonstrating the effectiveness of Czechia's approach to fleet electrification against its moderate-emission electricity context.

An all-ICE fleet scenario would yield the highest emissions at 359 tons of CO2e, while an all-BEV scenario, taking advantage of Czechia's energy mix, presents a significant reduction potential, dropping emissions to 199 tons of CO2e. This scenario emphasizes the critical role of Czechia's energy policy and infrastructure development in enabling substantial CO2e emission reductions through fleet electrification, illustrating a clear pathway towards achieving a more sustainable corporate fleet.

This analysis demonstrates the significant environmental benefits achievable through a strategic transition to a more electrified fleet in Czechia, emphasizing the importance of vehicle technology selection and the pivotal role of the country's energy infrastructure in realizing these benefits.

https://scopesdata.com/sustainability-country-information/czechia-2023

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