Poland demands increase in CO2 import quotas to curb energy prices

Warsaw proposes tripling import quota limits and launching them in 2031

The Polish government has proposed expanding the possibilities for importing international CO2 emission quotas in order to ease the pressure of rising energy and heating prices. According to Bloomberg, Warsaw believes that the current number of permits available in the EU will be insufficient in the coming years, which will inevitably lead to further price increases.

According to a document distributed by Poland to EU member states, the government proposes to raise the import limit to 10% of the Union’s 1990 baseline emissions. This is three times more than the 3% currently proposed by the European Commission. Warsaw also insists that such quotas should come into effect as early as 2031, five years earlier than planned in Brussels. It is expected that they will be able to be used both within the EU emissions trading system and in sectors outside it.

Poland justifies its position by the need to stabilize quota prices, which have risen sharply in the European market. According to the government, this could help energy-intensive industries such as metallurgy and cement. Warsaw also wants to have more opportunities to purchase emission rights outside the EU, for example, by financing forest conservation and environmental programs in other countries.

At the same time, Poland opposes the new plan to reduce emissions by 90% by 2040. Other large EU economies, such as Germany and France, are also skeptical. At the same time, critics of the Polish initiative warn that excessive reliance on international credits could undermine domestic decarbonization efforts and pose reputational risks if such quotas do not meet EU standards.

In 2024, Poland increased its steel production by 10.1% compared to 2023, from 6.4 million tons to 7.1 million tons. The country ranked 25th in the World Steel global ranking of steel-producing countries (71).

There are six steel enterprises in the country, including ArcelorMittal Warszawa (capacity of 0.75 million tons of steel per year), Celsa Huta Ostrowiec (0.9 million tons/year), Huta Czestochowa (0.84 million tons/year), CMC Zawiercie (1.7 million tons/year), ArcelorMittal Dąbrowa Górnicza (5 million tons/year), and Ferrostal Labedy Gliwice (0.5 million tons/year).