MNI INTERVIEW: Poland Says One-Year ETS2 Delay Not Enough

Poland wants the European Commission to take further "concrete" and "tangible" efforts to mitigate the impact of the extension of the ETS2 emissions trading system on consumers and businesses, the country’s Deputy Climate and Environment Minister Krzysztof Bolesta told MNI, stressing that a recently-agreed one-year delay was not enough.

"Considering the very close vote in the [European] Parliament, in my opinion this policy measure, even with a one-year delay remains controversial. We will be looking carefully at the revision proposals that the Commission promised and act accordingly. The most important thing is that in Poland we need time and funds to continue a just transition of our households. One additional year is certainly not enough," Bolesta said in emailed responses to questions.

The European Parliament last week backed the one-year delay to ETS2 until 2028 which had been decided by EU climate ministers after all-night talks on Nov 5. But talks will continue between the three big EU institutions -- Commission, Parliament and member states -- to come to a final deal.

Bolesta says that Poland is highly sympathetic towards the alliance of industrial countries which emerged at last month's EU summit meeting. The alliance brought to a head concerns among these countries that aspects of the current Green Agenda pose a threat to the bloc's competitiveness and industrial renewal as well as to its efforts to implement the Draghi Plan. (See MNI: EU Member States Plot Further ETS2 Pushback -Officials)

Poland would be quite likely to join the alliance depending on the issues, "grey" vs "green" hydrogen being one important one, Bolesta said.

"Energy transition challenges for countries where industry plays a significant role is a different ball game," he said.  

GREY HYDROGEN

"The target to green the hydrogen used in the industry is one of the key examples. Poland is one of the biggest users of grey hydrogen [from steam-methane reforming] in Europe and therefore our target is among the most challenging".

"This is only one of the challenges unique for industrial countries. It is therefore quite natural that countries like Poland, France, Italy and Germany will build alliances. I’m sure we will see more of them in the near future." 

Bolesta refrained from commenting directly on a recent comment by European Industry Commissioner Stephane Sejourne, who questioned the 2035 ban on sales of new internal combustion engine vehicles in a recent interview because of his concerns for the EU car industry and the threat of Chinese competition. 

But he said that Europe should give priority to protecting its industries.

"We should do whatever it takes to protect jobs and growth in the European automotive sector,” Bolesta said.

Bolesta said he is pleased that such important decisions as the launch date for ETS2 are no longer taken on "autopilot", but added that green policies now need to be combined with industrial and economic policies "at the highest levels".

The Commission is currently preparing further proposals to mitigate the impact of ETS2 and to try and reduce energy prices, but Bolesta said Poland will want to see more "tangible", "concrete" and "proactive action at the EU level" than in previous efforts to moderate fuel prices.