EU Environmental Regulations: Poland

As a member of the European Union, Poland is part of the EU ETS, aiming to reduce the European Union‘s greenhouse gas emissions and to stimulate the deployment oflow-carbon energy technologies. Poland is also bound by the Energy and Climate Package, which sets renewables and emissions reduction targets for 2020. However, Poland is also known to be the main advocate of a balanced approach towards reducing greenhouse gas emissions in Europe as it fears negative economic impacts.

In the European Union around 40% of all carbon dioxide emissions are affected by the EU ETS cap. Poland, however, depends totally on energy from coal and 60% of the country’s total emissions are covered by the EU ETS. Thus, Poland is expected to bear a disproportionally high cost for mitigating EU carbon dioxide emissions. By gradually closing the coal mines Poland fears an extra unemploy­ment of 100 000 people, which would cause a revolution in this country. Coal is a hugely strategic asset for the country so Poland is very much in favor of phasing out emissions gradually instead of drastically.

In June 2011, the Polish Government under the leadership of its re-elected Prime Minister Donald Tusk decided to block the European Commission’s Low-Carbon Roadmap for 2050. The proposed Roadmap sets intermediary emis­sions reduction targets up to 2050, aiming at an EU-wide emissions reduction target of 80-95% by 2050 and a specific target of 93-99% greenhouse gas emis­sions reduction for the power sector. In March 2012 Poland vetoed a second time the EU’s long term plans to cut carbon emissions. The Polish government fears a substantial increase in unemployment if thousands of jobs in the coal sector would be eliminated. Despite the veto the EU’s executive commission still wants to realize a low-carbon economy despite Poland’s objections.

Poland has one of the most carbon-intensive energy portfolios in all of Europe. Poland is vastly more reliant on coal for energy than most EU countries, meaning its emission difficulties are that much more challenging to overcome.

Currently, the carbon credit permits handed out to Poland and the Czech Republic are still free. However, this might change in 2013, when the EU’s new proposed ETS would force pollution emitters to buy carbon credit permits. Also, the new ETS would force up costs in Poland’s chemical, paper, and cement industry by about one-fifth. The costs may become so high that one major che­mical producer would probably leave Poland for a country with cheaper energy costs should the new ETS take effect.

8.11