The European Commission has today published a proposal to revise the EU ETS Directive. Poland is calling for a pragmatic and fair reform of the system, which will improve the competitiveness of industry and provide adequate resources to meet the challenges associated with the transition.

The climate transition must strengthen Europe’s competitiveness, not weaken it. That is why we have consistently advocated for changes to the ETS and built a coalition of countries that share this approach. Today’s proposal from the European Commission shows that Poland’s voice is being heard and is translating into concrete decisions

– said Paulina Hennig-Kloska.

The proposed revision takes into account several demands that are significant from Poland’s perspective:

• Slowing the speed of emissions reductions – a slower rate of reduction in the allowance pool means lower costs for industry – the European Commission’s proposal involves postponing the end of this process by 10 years – from 2039 to 2049.
• Extension of the Modernisation Fund – the Modernisation Fund will be extended by 10 years, until 2040. This is a major success for Poland, which coordinated the common position of the countries from our region.
• New instrument – ETS Investment Booster – the proposal provides for the creation of a special fund to support investment in industry. This additional support is aimed particularly at sectors facing the greatest transformation challenges.

In line with Poland’s proposal, the Commission has proposed a separate funding pool for countries with limited investment capacity, which will be granted preferential access to funding.

Poland is demonstrating that it is possible to effectively change European law through dialogue, analysis and coalition-building. We do not limit ourselves to opposition – we are actively working on solutions that benefit the Polish economy, industry and citizens. This strategy is yielding tangible results

– said Deputy Minister Krzysztof Bolesta.

Poland did not say ‘no’ to the transition – it said ‘yes’ to sensible changes. Thanks to cooperation with our EU partners, we have managed to draw up a proposal that slows the speed of emissions reductions, strengthens the Modernisation Fund and creates new support for industry. This is a step in the right direction and an important stage in further negotiations

– said Paulina Hennig-Kloska.

The Polish government is seeking a fair and pragmatic reform of the system, one that supports the competitiveness of European industry, ensures a just transition and strengthens energy security.

We have already built a strong coalition of countries around issues that are important to us, as demonstrated by our initiative for a joint letter on the Modernisation Fund, signed by 12 countries, as well as the joint position of 10 countries, led by Poland and Italy, on the reform of the ETS. This group constitutes a blocking minority, which may prove useful in negotiations on our proposals.