“These are millions of families.” Poland wants to stop selling emission allowances

Poland wants to end the sale of emissions. This was announced on Twitter by the lower house of the Parliament of the Republic of Poland.

“The Sejm has expressed support for the Polish government’s initiative to present a proposal to suspend the EU Emissions Trading Scheme at the forthcoming European Parliament, or to exclude Poland from the scheme until the system is reformed,” the Polish House of Commons said in a lower resolution on Thursday.

The document emphasizes that the European ETS system, which came into operation in 2005 with the aim of leading to an economically rational and socially acceptable rate of reduction of greenhouse gas emissions, is not currently fulfilling this task.

“The system has become a huge threat to Poland following the adoption and implementation of new climate policy instruments approved by the then Prime Minister Donald Tusk at the European Council in March 2014. The speculative structure of the EU ETS leads to unprecedented increases in energy prices, sector of Poland and the whole of the European Union, “states the document of the lower house of parliament. “In 2014, the price of CO allowances2 was around six euros per tonne. Today, it already exceeds the ceiling of 85 euros per tonne. As a result, these costs will be passed on to energy consumers, who will face a drastic rise in electricity and heat prices by several tens of percent in 2022. It is a direct intervention in the economic security of millions of Polish families and Polish businesses that are at risk of poverty and bankruptcy. The Sejm of the Republic of Poland cannot remain passive in the face of such catastrophic effects of EU climate policy, “Polish MEPs emphasize.

The question is how important is the parliamentary call for a tough move by the Polish government. “It is an initiative of the Sejm, the Senate (upper parliamentary chamber, editor’s note) is skeptical. And so far they have not managed to get any allies from another state, “says Czech Senator Zdeněk Nytra (ODS), who acted in Poland on Friday.

According to Nitra, the market for allowances certainly does not work well and it is definitely worth reconsidering the rules. “Finally, the statement of the Czech Senate during the discussion of the draft legislative package Fit for 55. was similar.

On the contrary, MEP Luděk Niedermayer (TOP 09) emphasizes that the system of emission allowances is essential for European decarbonisation rules. “I can’t imagine how the suspension of the system should work at all,” he says.

He himself says that no one has yet submitted any meaningful and functioning alternative to the current emissions trading system. “Another change in the system is part of Fit for 55, where it will be extended to transport and buildings. The system is at the heart of Europe’s decarbonisation efforts. If someone wants to reform it, they have to come up with a really good proposal, but I am not yet aware that anyone would do it, “adds Niedermayer.

The future Minister of the Environment, Anna Hubáčková (KDU-ČSL), does not have a clear idea about the reforms or suspensions of the system. “As the EU, we must respect the European agreement and the Green Deal, and something like this should come before the next parliamentary session,” Hubáčková said.

Allowances began to rise in price two years ago when a European regulator began withdrawing them from the market to boost their price. However, there has been a sharp rise in prices since the beginning of this year, when financial investors became heavily involved in trading with them.

According to energy expert and ČEZ shareholder Michal Šnobr, Poland’s withdrawal from the EU ETS is unrealistic. “I see these Polish steps as testing the potential that the Poles can get out of it,” he says.

According to him, Poland is under pressure due to its relations with Russia and rising gas prices. “They are in danger of losing the transit of Russian gas by launching Nord Stream 2. They still play the same note, they still use the same resources, but I really can’t imagine Poland really leaving the system. I still can’t imagine the EU agreeing to reform the allowance system now, “Šnobr thinks.

Emission allowance prices are skyrocketing. This week, their price exceeded 90 euros per tonne of CO emitted2. Emission allowances are one of the factors driving current energy prices.

The EU Emissions Trading Scheme has been in place since 2005 and is now a key pillar of its energy policy.