The European Union's climate policy has eroded competitiveness and must shift away from an ideological approach to avoid further damage to industry, Czech billionaire investor Daniel Kretinsky said on Tuesday.

Speaking in a rare public appearance, Kretinsky, whose EPH group is one of the biggest energy firms in Europe, told a conference in Prague that the EU's "lead by example" approach has stifled a rational debate about "drastic" climate goals.

He said the EU should not make the same mistakes with its approach to the car sector as it did in energy.

"The European Union must approach these questions more pragmatically," the Czech investor, who made his fortune in energy but has branched out into investments in media and retail around Europe, told the Shifts23 conference in Prague.

"This requires, according to me, a fundamental ideological shift, and that is to transform the slogan 'lead by example' to 'we will bring a solution'."

Kretinsky said mistakes were made, such as EU states making large investments in renewable sources, starting more than a decade ago with subsidies in solar, before European companies and technology were ready, allowing China to grow in the sector.

He also said the EU had not managed its competitiveness, with energy and workforce costs for business cheaper in the United States than in Europe, hurting investment in the bloc.

He said debate now also concerned the key car sector in Europe. "It can't end like this, that we destroy or fundamentally damage the European automotive industry."

The EU, the world's third biggest economy, has aimed for zero net emissions by 2050 under its Green Deal policy, and is debating possible plans to slash greenhouse gas emissions by 90-95% by 2040. Some industries have called for a weaker target.

Kretinsky grew EPH, which has plants spanning the Czech Republic to Germany, Italy and Britain, by buying unwanted coal assets, but has shifted the business in recent years, with 72% of its power production last year from non-coal sources.

EPH has aimed to cut its coal use to zero by 2030.

(Reporting by Jason Hovet; editing by Mark Heinrich)