Polish energy sector joins call for EU aid

Leszek Wdowiński/PAP

Companies and associations representing the energy sector in eight "new" EU countries, including Poland, called for broader compensation mechanisms to help the sector undergo necessary modernisation in view of the new 2030 CO2 reduction target.

In early March, the European Commission announced that by September 2020 it would present a plan to raise, by 2030, the CO2 reduction target to 50-55 percent compared to 1990 levels. Currently, this target is 40 percent.

Energy companies from Poland, Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Hungary and Romania expressed concerns that such a change may cost them much more than t would their counterparts in Western Europe.

In a joint statement, the companies indicated that raising the greenhouse gas emissions target to 55 percent may elevate the price of emission permits to EUR 75 per tonne against the current EUR 25. In 2018, the price stood at below EU 10 per tonne.

Sector representatives also warn that this may generate huge operational costs, as well additional funds for necessary investment.

Successful implementation of climate law requires a proportionate increase in the EU-ETS compensation mechanism to help the energy sector with low-GDP countries in its additional efforts to implement the increased 2030 goals, reads the document.