Planned protective and investment activities related to ETS2
In order to to mitigate the effects of the introduction of the ETS2 system (to come into force in 2027) to the maximum extent possiblewe are planning introducing appropriate protective and investment measures – PAP reported Deputy Minister of Funds and Regional Policy Jan Szyszko. “Some of them will be financed from Social Climate Fund (SFK), which is a +KPO 2+, i.e. it will be implemented on very similar principles to KPO. Spread over seven years Poland will have about PLN 50 billion to invest in it.” – said Szyszko.
The deputy head of the Ministry of Funds stated that SFK is an additional investment mechanismbut far from sufficient to cover social costs of introducing ETS2 e.g. in the transport sector. As he pointed out, available analyses show that introducing this system may have “serious consequences for society”, and the costs of introducing the system are “disproportionately high for less affluent countries and societies in the European Union, such as Poland”.
Consequences of introducing ETS2 for households
Szyszko also explained that ETS2 is the extension of the emissions trading system to new sectors – above all building sectors and transport. He pointed out that the entry into force of the system will consequently mean higher fees for households for coal, gas or heating oil“The introduction of the new system may be particularly harmful to less affluent people,” he said.
The deputy head of the Ministry of Finance and Social Policy stressed, however, that regardless of the form in which ETS2 will enter into force and whether it will happen in 2027 or 2028, the ministry is preparing Polish plan for a Social Climate Fund.
Preparations for the Social Climate Fund
“We have to be ready for any solution and think about what’s next. Right now, with our counterparts in Ministries: Infrastructure, Development and Technology and Climate and Environment we are talking about assumptions of the Social Climate Fund. We will definitely want to allocate one third of the entire amount, which is the maximum that the Fund’s rules allow, to support those in need,” he said.
At the beginning of June Minister of Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz told PAP that “the preparations of consumers and citizens for this fee were very slow, if only because of the fact that blocking of funds from the KPO there was no necessary investment.” She added that funds from emission fees they stay in the Polish budgetare at the disposal of the Polish state, and the European Union provides Poland with additional funds for this purpose.
Operation of the European Emissions Trading System
European Emissions Trading System (ETS) has been in operation since 2005. According to data from the European Commission carbon dioxide emissions (CO2) in the EU was approximately 47 percent lower in 2023 than 18 years earlier, thanks in part to the ETS. Under the system, companies must buy CO2 emission rightstaking into account in this way environmental costs. The limits are getting lower every year, which is supposed to encourage transformation towards low emission and lead to the achievement EU climate goals.
Each member country is entitled to a certain pool of allowances, which are subject to trading rules. Ministry of Climate and Environment reported that in the years 2013-2023, the state budget received PLN 51 billion thanks to this. This is money that should be spent on the green transformation. (PAP)
Author: Bartłomiej Pawlak
