Quick overview:
The Environment Act sets out the basic principles of environmental protection and liability for environmental damage, both for individuals and businesses. This is followed by the Environmental Impact Assessment (EIA) Act, which determines when major construction or investment projects must be assessed in advance for their impact on the surrounding area. Compliance with these obligations is monitored by the relevant authorities, in particular the Czech Environmental Inspectorate, which can impose corrective measures and heavy fines. The State Environmental Fund of the Czech Republic, which provides subsidies for environmental projects, also plays an important role, but breaches of these requirements can lead to an obligation to repay the aid.
Not sure if the Environmental Act or EIA applies to you? Are you planning to build, run a business, draw down a subsidy or are you already dealing with an inspection? Use our legal advice service and get an answer within 24 hours.
What is the environment from a legal perspective
From a legal perspective, the environment is not just “the nature around us”. Environmental law understands it as the sum of all natural components – air, water, soil, rocks, organisms and ecosystems – and their interrelationships. Environmental protection is a public interest and the state has a duty to ensure it.
The basic principles are quite strict. For example, the precautionary principle applies: everyone has a duty to act in such a way as to prevent damage to the environment. It is not just intention that plays a role. Liability can also arise from negligence or a breach of an administrative duty.
This is when many people realise that environmental protection concerns them more than they expected. It is not just large industrial enterprises. Liability can also arise when building a house, running a restaurant or, for example, when waste is handled in an unprofessional manner.
If you’re not sure whether your project requires a permit or notification to the authorities, it’s cheaper to have the situation checked out preemptively than to deal with the consequences and fines afterwards.
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When the ordinary person encounters environmental law
The typical perception is that environmental law only deals with power plants or highways. The reality is different.
Are you building a house? You may be concerned with a water source protection zone, noise limits, landscape disturbance or tree felling. Want to dig a well? You are entering the water law regime. Planning a heat pump? You’re addressing noise and potential objections from neighbors.
Neighbour disputes are very common. For example, one owner discharges sewage without the proper permits, another piles soil on the property in a way that threatens the quality of the soil or groundwater. In these cases, the environmental inspectorate or the water authority may be involved.
A separate and very common area is waste. Many people do not realise that the obligations do not only apply to companies, but also to ordinary citizens. An individual may violate the Waste Act, for example, by dumping construction debris in the forest, disposing of old tyres outside a collection point, burning plastic waste in the garden or handing over hazardous waste (paints, varnishes, oils, asbestos materials) to someone who is not authorised to take it. It is also problematic to ‘temporarily’ deposit waste on one’s own land if an unauthorised landfill is actually created.
A special regime applies to hazardous waste such as chemicals, oils, batteries or asbestos-containing materials. These wastes can only be handled in the manner prescribed by law and disposal by an unauthorised person may be in breach of environmental regulations.
The penalties are not insignificant. A fine of tens to hundreds of thousands of crowns can be imposed for a waste management offence, depending on the severity and extent of the act. If the environment is endangered or damaged to a greater extent, the matter may also be considered a criminal offence. In addition to the fine, there is also an obligation to remove the waste at your own expense, which can be even more costly than the penalty itself.
Are you planning a construction project? It’s worth checking in advance whether you are subject to special environmental restrictions. Early legal analysis can prevent construction stoppages or additional costs.
Business and environmental protection: When are you at risk of scrutiny
Businesses have a heightened responsibility when it comes to environmental protection. They must comply with a number of reporting and record-keeping obligations, ensure proper waste management, comply with emission limits or have the necessary water permits.
Compliance with these obligations is monitored, among other things, by the Czech Environmental Inspectorate. The Environmental Inspectorate is entitled to enter establishments, request documentation and impose corrective measures and fines.
The typical problem is not just “visible pollution” but administrative malpractice. Lack of waste records, late reporting or inadequate internal guidelines can lead to sanctions even though no actual environmental damage has occurred.
Fines can range from tens of thousands to millions of crowns depending on the severity of the violation. In extreme cases, the matter may even be classified as a criminal offence of environmental damage and endangerment.
If you have been notified of an inspection or if administrative proceedings have already been initiated, you should address your situation with an attorney immediately. The right strategy can make a significant difference in the amount of the penalty.
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What the Environmental Impact Assessment (EIA) Act addresses
TheEnvironmental Impact Assessment Act regulates a process known as EIA. This applies to projects that may significantly affect the environment – for example, major buildings, industrial sites, transport infrastructure or mining.
The EIA process precedes the actual permitting of the project. The aim is to assess impacts on air, water, landscape, noise pollution or public health. Both the authorities concerned and the public can intervene in the process.
Underestimating EIA can have major consequences. If an investor starts a project without a proper assessment or in violation of its conditions, the project can be stopped, the subsequent permit revoked or a sanction imposed.
On the other hand, citizens can also exercise their rights if they believe that a planned project will negatively affect their neighbourhood. Properly formulated objections and participation in the procedure can have a real impact on the shape of the project.
Are you planning a major investment? Then checking whether it is subject to the Environmental Impact Assessment Act regime should be one of the first steps you take.
The State Environmental Fund of the Czech Republic
The State Environmental Fund of the Czech Republic is a key institution for financing environmental projects. It provides support, for example, under the New Green Savings Programme, for the insulation of buildings, the installation of renewable energy sources or landscape revitalisation.
Obtaining a subsidy is a major financial help for many investors. However, there are strict conditions attached to the support. The beneficiary of the subsidy must meet the technical parameters of the project, respect the timetable and allow for inspection.
Violation of the conditions may lead to partial or full repayment of the subsidy. In practice, there are cases where the beneficiary underestimates the administrative requirements or changes the project without the Fund’s approval.
It is important to note that the State Environmental Fund does not only deal with the payment of the aid itself, but also with the follow-up of the commitments. So, before you sign an aid agreement, have its terms and conditions reviewed and explained by a lawyer so that you are 100% aware of what you are getting into.
How to defend yourself against a fine or decision by the Authority
If you have been fined for breaching your environmental obligations, this is not a final situation. There is the possibility of an administrative appeal or subsequent administrative action.
Most importantly, there are deadlines. You only have a limited time to file an appeal or other remedy – often only a few days or weeks. If you miss the deadline, the decision may become final and the possibility of defending yourself is virtually gone.
But defending yourself often makes sense. Sometimes it is possible to argue that the fine is excessive, that the authority did not take all the evidence, or that it made a mistake in the inspection or procedure. In other cases, it may be that the facts have not been sufficiently established.
Defending a case does not always mean fighting at all costs. Sometimes the aim is to annul the decision altogether, other times it is enough to obtain a reduction of the fine or to modify the remedies imposed so that they are feasible and proportionate.
If you have received a decision from an environmental inspectorate or other authority, don’t put off dealing with it. The sooner you address the situation, the better your chances of a good outcome.
Environmental law is complex and often intertwined with construction, administrative and subsidy law. The expert help we offer can significantly reduce the risk of financial and reputational damage.
If you are unsure whether environmental law applies to you, contact us. We will assess the situation and suggest a specific course of action.
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Summary
Environmental law is not only concerned with large industrial projects, but also with everyday situations such as building a house, cutting down trees, drilling a well, dealing with waste or running a business. The Environment Act sets out everyone’s basic duty to prevent damage, the Environmental Impact Assessment (EIA) Act regulates the approval of major projects and their impact on the surrounding area, while compliance is mainly controlled by the Environmental Inspectorate, which can impose heavy fines. Strict rules also apply to waste and to the use of subsidies from the State Environmental Fund of the Czech Republic, where breaches of the conditions can mean repayment of the aid. If sanctions are imminent or administrative proceedings have already been initiated, it is crucial to react in time and choose the right defence strategy, as deadlines are short and the consequences can be financially and reputationally very significant.
Frequently Asked Questions
What does the Environmental Act regulate?
It sets out the basic principles of environmental protection, liability for environmental damage and the obligations of natural and legal persons.
Who controls environmental compliance?
Inspections are carried out by specialised authorities, in particular the Czech Environmental Inspectorate, but also by water and building authorities.
When is an Environmental Impact Assessment (EIA) mandatory?
For projects that may have a significant impact on the environment, such as major construction, industrial or infrastructure projects.
How high can the fines for infringements be?
Depending on the severity, they can amount to hundreds of thousands to millions of crowns; in particularly serious cases, criminal liability may be involved.
What is the State Environmental Fund of the Czech Republic?
It is a state institution that provides subsidies for environmental projects, such as energy savings or renewable energy.
Can a neighbour challenge my project because of the environmental impact?
Yes, if it is a party to the procedure or if the law allows the public to intervene in the process (e.g. in an EIA).