Poland's Deliberate Climate Neutrality Pursuit: Seeking Support for an Energy Evolution
- Poland | 2 December 2021
Poland remains in negotiations with the European Commission, resolutely examining the terms and conditions surrounding the EU’s ambitious goal of achieving climate neutrality by 2050. Notably, Poland stands as the sole member state yet to fully embrace this monumental climate objective, citing the need for concrete and quantifiable support for its transition towards cleaner energy sources.
Warsaw passionately contends that its energy landscape is a unique case. Indeed, in 2019, coal claimed a substantial 76% share of the nation’s electricity generation, with gas contributing 8.8% and renewables making up 15.4% of the overall mix. Within the realm of renewables, onshore wind farms emerged as the frontrunners, accounting for a commendable 9.2% of Poland’s renewable generation. Forum Energii, a prominent Polish energy think tank, observed a noticeable decline in coal-based electricity generation, a trend balanced by the burgeoning renewable sector and increased energy imports.
Despite the current circumstances, Poland is unquestionably navigating an inevitable energy transition, driven by the converging forces of advancing technology, evolving regulations, and mounting environmental considerations. The implicit stance in Warsaw suggests that Poland indeed supports the climate neutrality goal but awaits concrete commitments from the European Commission. The rapid evolution of technology has rendered renewable energy increasingly cost-effective. The Polish government concedes that offshore wind power plants and photovoltaics will soon operate profitably without external support, thriving within the confines of standard market conditions.
The International Renewable Energy Agency (IRENA) forecasts that renewable energy sources (RES) will attain competitiveness with fossil fuels over the course of 2020, further strengthening the case for Poland’s energy transition.
Another pivotal factor underpinning Poland’s inexorable transition is the comprehensive climate policy of the European Union. Although emission trading schemes have led to a relative decline in CO2 prices, the European Commission possesses a range of tools at its disposal to boost carbon prices. Mechanisms such as the Market Stability Reserve or backloading can reduce the number of CO2 allowances available on the market. The EU’s long-term climate policy aims to elevate the costs of energy production from fossil fuels, thereby favoring the growth of renewable energy generation. This shift is not solely confined to the European Emission Trading System (EU ETS) but extends to green financing, which has progressively made investments in conventional energy generation less financially attractive and secure, ultimately rendering them less worthwhile.
Lastly, Poland is grappling with the growing global awareness of the imperative need to safeguard the environment. Environmental concerns are palpable within the country, with citizens experiencing the tangible effects of smog, a reality that is increasingly difficult to accept as part of daily life. Escalating civil activism in favor of nature preservation, coupled with a heightened public awareness and engagement, has cast a shadow over fresh investments in lignite production, making them progressively problematic.
As Poland navigates this pivotal juncture in its energy evolution, the nation seeks the necessary support and assurances to undertake a meaningful and effective transition towards a cleaner, more sustainable energy future.