Poland Blocks Tougher CO2 Targets

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Coal-rich Poland is set to veto any plans by the European Union (E.U.) to raise the carbon emissions targets.

The country, which relies on coal-fired power plants for over 90% of its electricity, is digging its heels in as fellow E.U. member states meet to discuss how to fix the ailing, Emissions Trading System (ETS), the world's largest carbon cap-and-trade program. Poland, like it did in June 2011, is preparing to veto any plans to raise the CO2 emissions reduction target from the existing 20% by 2020 to 25% or even 30%.

The European Union (E.U.) recently announced that it will make key changes to the ETS scheme in an effort to deal with a chronic oversupply of carbon credits and plummeting carbon prices. The price of carbon has fallen as low as €6.34 ($8.20) in recent months, an all time low. The ETS covers more than 11,000 power stations, factories and refineries in 30 countries, which emit almost half of the E.U.'s CO2. For additional information see April 27, 2012, article - E.U. to Fix Ailing Emissions Trading Scheme.

Jochen Flasbarth, head of Germany's Unweltbundesamt environment agency, claimed that Poland is now the only E.U. member state refusing to back higher CO2 targets. "If this can't be solved in the council of environment ministers, then I see no other possibility other than the heads of state and government tackling the issue in the European Council," he said. Flasbarth maintained that boosting the target to 30% by 2020 would help sort out the ETS problems. Denmark and the U.K. are both in favour of raising the emissions targets to 25%.

Documents seen by the Financial Times show that Poland is ready to stand against any 'administrative meddling' to prop up carbon prices, including raising the emissions targets.

"We cannot judge effectiveness of the ETS by the price, just like we cannot judge the efficiency of windmills by their looks," the documents stated. "Growth will return and the price will find its equilibrium again. No administrative meddling is needed or else we might create the impression that such measures are standard practice."

Last month, Poland's Environment Minister, Marcin Korolec, reacted angrily to proposals by the E.U to change the ETS scheme, claiming it would 'bankrupt' Polish companies. He argued that the E.U.'s attempts to boost the carbon price during a time of economic austerity would result in an increase in the price of power.

This week, in a letter to E.U. colleagues, he wrote: "There is no point whatsoever in gambling with the European economy's future, introducing policies that might put our industries in jeopardy versus our competitors".

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