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Poland demands deep reform of EU carbon market to shield industry, households

19.03.2026 16:00
Poland will campaign for sweeping changes to the European Union’s emissions-trading system (ETS) rather than try to abandon it, Climate Minister Paulina Hennig-Kloska has said, warning that current rules saddle companies and consumers with unmanageable costs.
Paulina Hennig-Kloska.
Paulina Hennig-Kloska.Photo: PAP/Marcin Obara

Speaking after talks with business groups earlier this week, Hennig-Kloska said that the ETS should “give an impulse and the means to break with imported fuels in a way that is acceptable for the economy and for households.” She argued that free carbon allowances for industry must be extended, district-heating companies need extra help and stronger safeguards are required to curb speculation in CO₂ permits.

Warsaw also wants the planned ETS 2, which will price emissions from transport and buildings, applied only on a voluntary basis until 2030; the mechanism is due to begin in 2028. The minister said Poland had already won a one-year postponement and is now “conducting broad talks” with partners, including France and Germany in the Weimar Triangle format, to secure further concessions.

Prime Minister Donald Tusk has sent a joint letter with Italy, Belgium, Austria, Bulgaria, Slovakia, Greece and other states urging the European Commission to keep free allowances for energy-intensive sectors despite the forthcoming carbon-border levy (CBAM). “We need a system that supports competitiveness instead of undermining it,” Hennig-Kloska said.

Poland, where coal still generates around 70 percent of electricity, spends some PLN 35 billion (EUR 8.2 billion) a year on EU carbon permits. The conservative opposition and President Karol Nawrocki have called for the ETS 2 to be scrapped altogether, but the minister said leaving the scheme “unilaterally is impossible”.

EU leaders were discussing the future of the carbon market at a summit in Brussels on Thursday.

The ETS, introduced in 2005, has cut emissions from power and heavy industry but the price of carbon has risen sharply, fueling a debate over how to balance climate goals with energy security and economic strain.

(jh)

Source: PAP