This interview with Pavel Zemene, Chairman of the EPS ČR Association, examines the role of building insulation in the Czech Republic, current market developments and the collection and recycling of expanded polystyrene (EPS).
Speaking to Czech business publication Euro.cz, Pavel Zemene discusses the development of demand for insulation materials, the influence of energy prices and geopolitical developments, the potential for further building renovation in the Czech Republic, and ongoing discussions around fire safety requirements. The interview also addresses the management of EPS waste from construction and packaging and examples of separate collection at local level.
The original interview, written by Jan Boháč, was published in Czech by Euro.cz on 21 October 2026. The English version below is a translation of the original article.
In the Czech Republic, only about half of all blocks of flats are thermally insulated. Yet, according to an expert, this could save people tens of thousands
21 October 2026 - Pavel Zemene, Chairman of the EPS ČR Association
(INTERVIEW) Insulating buildings can significantly reduce households’ energy bills whilst also reducing the Czech Republic’s dependence on fossil fuels; yet, only around a third of detached houses and half of apartment blocks in the country are currently insulated. How are the prices of insulation materials developing, how is the sector being affected by the current crisis in the Strait of Hormuz, and how can expanded polystyrene be recycled more effectively? Pavel Zemene, Chairman of the EPS ČR Association, discusses these and other issues in an interview for Euro.cz.
The EPS ČR Association represents suppliers and processors of expanded polystyrene in the Czech Republic. These can be divided into two main groups: approximately 85 per cent of consumption is accounted for by manufacturers of insulation boards for the construction industry, whilst the remaining 15 per cent consists of packaging, for example for white goods.
The association champions the interests of these manufacturers and focuses on legislation, fire safety, the environment and recycling. It has been operating in this capacity for around twenty-eight years and currently has a total of nine members, who together employ roughly a thousand people.
To begin with, could you please tell me what changes your sector has seen in recent years? What is the consumption here of this de facto basic building material?
If we look back, around 25 years ago, the consumption of expanded polystyrene in the Czech Republic stood at around 10,000 to 15,000 tonnes per year. Over the following 10 years, it rose to approximately 60,000 tonnes and remained at that level for the entire subsequent decade. Then came the Covid-19 pandemic, during which consumption fell slightly as there was less construction activity. Recently, however, it has been gradually rising again.
Apart from the construction and packaging sectors, where else is expanded polystyrene still used?
Polystyrene is used, for example, in car seats, cycling helmets and promotional items. In Karlovy Vary, for instance, the famous Becherovka bottle is made from polystyrene. Another example is the heated benches in wellness centres, which are clad with small ceramic tiles but have a polystyrene base. There are a whole range of such applications, but together they account for only around one per cent of total consumption.
What is the current state of demand for polystyrene in the construction industry?
Most of the polystyrene intended for the construction industry is used in renovation projects, whilst a smaller proportion is used in the construction of new buildings. However, as the construction of new buildings has slowed significantly in recent years, demand in this segment has fallen. Renovations, on the other hand, have long been supported by the New Green Savings scheme, which helped to maintain interest in thermal insulation even during tougher times.
What other factors influence demand for insulation materials?
Rising energy and heating costs play a significant role. When people’s bills start to rise significantly, they naturally think about how to reduce their expenditure. Nowadays, however, most people understand that the foundation of savings lies in insulating their home, and only then does it make sense to invest in other modern technologies, such as heat pumps or photovoltaics. After all, if someone first installs a heat pump which, due to an uninsulated house, needs to be three times more powerful than it would otherwise be, such an investment may not deliver the expected results.
The closure of the Strait of Hormuz caused panic
What happened to the demand for insulation after the war in Ukraine began, when energy prices rose sharply? I assume it went up – is that right?
Absolutely. At that time, the increase in demand was enormous, and market panic also played a significant part in it. People were worried about a shortage of building materials, so they tried to buy insulation materials as soon as possible. This increased demand subsequently contributed to price rises. At the same time, the price of oil – which is a raw material for the production of styrene used in the manufacture of polystyrene – was rising rapidly. That was another reason why insulation prices were rising.
A similar situation recurred this year following the closure of the Strait of Hormuz. Once again, demand and the price of oil rose, driving up the prices of insulation materials to roughly double their previous levels. We tried to reassure people that there was no need to panic, that the situation would settle down in time and prices would fall again. And although our prediction was correct, unfortunately we didn’t manage to convince many people.
Weren’t you concerned that, because of the war in Iran, you wouldn’t have enough material to produce polystyrene?
Not at all. Styrene is partly produced in Europe, partly imported from the United States, and only a certain proportion comes from the Middle East. We therefore have multiple sources available, and we weren’t at all worried that we wouldn’t have the raw materials to produce polystyrene in a month or two.
Has the war in Iran affected the sector in ways other than rising raw material prices?
A key issue at the moment, due to the war, is the security of shipping routes. If goods cannot be transported via the standard route through the Suez Canal, ships have to sail round the whole of Africa, which makes transport significantly more expensive. Furthermore, the current situation is significantly increasing the cost of ship insurance due to the risk of attacks. At the same time, only a few carriers are willing to send ships into high-risk areas, and they demand a corresponding risk premium for doing so.
The potential remains high
Apart from the geopolitical situation, what else influences the consumption of insulation materials?
Government support is also a significant factor, for example through the aforementioned New Green Savings programme. This has changed from a grant scheme to a system of interest-free loans, whilst direct grants remain reserved solely for low-income groups. Personally, however, I don’t think this is necessarily a bad thing. In my view, grants should not be a long-term tool.
Have you noticed a drop in interest since the programme was changed in this way?
After the new programme was launched, there was a great deal of interest, as people who hadn’t been able to apply in the previous round of grants also signed up. Although it has slowed down a little recently, we hope it will gradually pick up again. The new rules simply need to bed in, and people need to get used to them.
In your view, is state support an essential condition for people to insulate their homes?
I’ve always seen it this way: if the state wants to promote something new, such as electric cars or home insulation, it must invest in it initially and show people that this is the right way forward. In such cases, new technologies and practices will then become widespread even without support. For example, people see that a neighbour has insulated their house and it’s working for them, so they no longer even wait for a grant themselves. The situation is different for the lower-income section of the population; there, the state needs to help, for example through grants.
How many homes in the Czech Republic are currently insulated?
For blocks of flats, the figure is around 50 per cent; for detached houses, it’s about 25 per cent. So there is still great potential in the market. This is, of course, just my estimate, but I think we could reach somewhere around 70 or 75 per cent. This is because some houses are practically impossible to insulate, or very difficult to do so, for example due to heritage protection. For others, the investment in renovation isn’t worthwhile, so the owners end up replacing them with new-builds that are already thermally insulated.
The older the house, the more effective the thermal insulation
A change to the fire safety standards relating to thermal insulation is currently being prepared. What exactly is this about?
A recent analysis, which also looked at current fire safety standards abroad, showed that the requirements of the Czech standard would benefit from being amended. A review is therefore currently underway, which should, for example, ease the requirement to use fire barriers made of non-combustible insulation materials, specifically so-called mineral wool.
Whilst in virtually all neighbouring countries the prescribed height of these barriers is 20 centimetres, in the Czech Republic it is currently 90 centimetres. The new standard proposes reducing this to 20 centimetres.
How much could such a change save people?
The standard will, of course, not prohibit the use of thicker layers of mineral wool. However, if builders were to actually reduce the amount used to the level common in neighbouring countries, this could yield savings of over one billion crowns a year. For an average detached house, we are talking about a cost reduction of approximately one hundred thousand crowns; for blocks of flats, the savings could exceed one million crowns.
How much can insulation alone save?
Generally speaking, the older and less energy-efficient a house is, the greater the impact that thermal insulation can have. For houses between 30 and 50 years old, heating costs can easily be reduced by 40 to 50 per cent. If someone currently pays 80,000 crowns a year for heating in a larger house, they could save 40,000 thanks to thermal insulation. What’s more, it’s crucial to note that buildings in the Czech Republic account for approximately 40 per cent of total energy consumption. If we managed to renovate and insulate them, our country would be much more energy self-sufficient and less dependent on fossil fuels. I believe that’s very important.
How does your sector view European regulations?
We try to take a proactive approach to them, rather than simply complaining about everything. We participate in the drafting and approval of important legislation affecting our sector, and we strive to incorporate our perspective into these regulations. At present, there is a strong emphasis on sustainability, which helps us in many respects, as insulation naturally reduces the amount of emissions caused by heating.
Can you give a specific example of legislation that you have managed to influence in recent years?
One example is packaging legislation and so-called ‘fish boxes’. When salmon are caught in Norway, for instance, they are placed in an expanded polystyrene box with ice and transported to the Czech Republic. Transporting the empty packaging back to Norway would, of course, make no sense, as up to 98 per cent of its volume consists of air. That is why we have created a system in which the packaging is cleaned and recycled in the Czech Republic. Only then is the recovered raw material transported to Norway, where it is used to manufacture a new box. This process is far more efficient and hygienic, as we have explained to officials in Brussels. There are, in fact, a whole host of similar examples.
Expanded polystyrene containers
How is expanded polystyrene waste currently managed in the construction industry?
There are two main types of waste. During the insulation process itself, so-called offcuts are produced – that is, clean, new pieces of polystyrene. These are collected by recyclers or directly by insulation board manufacturers, who incorporate a certain proportion of them into new products.
The second scenario involves the removal of old insulation. In this case too, we have demonstrated that polystyrene can be separated from other layers, compacted and transported to an incinerator. This applies to polystyrene manufactured before 2014; newer material can now be 100 per cent recycled, which represents a significant advantage. Overall, therefore, there are relatively few instances where polystyrene ends up in incinerators or on landfill sites.
Interestingly, although most expanded polystyrene is used in the construction industry, the situation is the opposite when it comes to waste. This is because packaging becomes waste practically immediately after the product is unpacked, whilst insulation material, ideally, remains on the façade for up to 50 years. At present, therefore, approximately two-thirds of polystyrene waste comes from packaging, which people can dispose of in the yellow plastic bins, from which the polystyrene is subsequently sorted on a sorting line. The disadvantage, however, is that it can become contaminated during collection and sorting, which limits its potential for further use.
So, can the collection and recycling system be improved further?
In some towns, such as Kralupy nad Vltavou, special bins have already been introduced exclusively for expanded polystyrene packaging. These are then transported to a recycling centre, where they are compacted using a compactor, and the processed material is subsequently sold for further processing.
The system works very well – people have got used to it, and it is only very rarely that they put something in the bins that does not belong there. Moreover, it pays off financially, as the separate collection of polystyrene reduces the frequency of collections from the yellow plastic bins. That is why several other towns have already expressed an interest in a similar solution.
The interview provides a national perspective on several issues that are also relevant to wider European discussions on building renovation, energy efficiency, construction requirements and the management of EPS waste.
As a member of EUMEPS, EPS ČR represents the expanded polystyrene industry in the Czech Republic and contributes its national experience to the wider exchange of technical and policy information across Europe.