The Polish government is preparing to introduce a fresh ETS2 emissions trading strategy that will enter into force in 2027 at the earliest. In order to mitigate the possible effects of this scheme, cover and investment activities are planned, with the financing of any of these activities by the Social Climate Fund (SCC). Find out how the ETS2 strategy will affect Poland, what the government's actions are planned and how to prepare for the upcoming changes.
What is ETS2?
European Emissions Trading strategy (ETS) is simply a key component of the European Union's climate policy to reduce carbon dioxide (CO2) emissions. The ETS2 will extend this strategy to fresh sectors specified as transport and buildings. Under ETS2, businesses and households will gotta buy CO2 allowances, which will affect energy prices and the cost of building operation.
Planned Shield Actions
To mitigate the effects of the introduction of ETS2, the government plans to introduce shielding and investment measures. Deputy Head of the Ministry of Funds and Regional Policy (MFiPR), Jan Szyszko, noted that any of these activities would be financed from the Social Climate Fund (SFK). Poland is expected to receive about PLN 50 billion for this fund, which will operate on principles akin to the National Reconstruction Plan (KPO).
Shielding activities shall include:
- Financial support for little affluent people who may be peculiarly affected by higher energy costs.
- Investments in energy transformation and improving the energy efficiency of buildings and transport.
- Grants and reliefs for the sectors most susceptible to the effects of the ETS2.
How will ETS2 affect Poles?
The introduction of the ETS2 will affect the everyday life of Poles through:
- Higher energy costs – The introduction of CO2 emissions charges can increase prices for coal, gas and fuel oil, which will affect household accounts.
- Changes in transport costs "Emission costs increase in the transport sector can lead to higher fuel prices and transport services.
Why the ETS2 Introduction Is Important?
The ETS2 is part of a European climate strategy. Data from the European Commission show that CO2 emissions in the EU decreased by about 47% between 2005 and 2023 as a consequence of an effective climate policy and ETS. The fresh government aims to further reduce emissions and to advance the green transition of the economy.
How to Prepare for Change?
To prepare effectively for the introduction of ETS2, it is worth:
- Monitor changes in energy prices and adjust your consumption habits.
- Invest in energy efficiency your home or company to reduce energy consumption and reduce costs.
- Follow the information on the government's shielding activities and the usage of available financial support and grants.
The introduction of ETS2 involves challenges, but besides opportunities for green transformation in Poland. The government plans shielding actions to mitigate the effects on households and businesses. Thanks to the Social Climate Fund, Poland will be able to allocate crucial resources to financial support and investments in energy transformation. Conscious preparation for changes and usage of available support will let for effective adaptation to the upcoming regulations.
More here:
Government Planned Shield Action in the ETS2 Framework: What Should You Know?
