Brussels, 07/11/2008 (Agence Europe) - Poland, which never passes up an opportunity to raise awareness among the other member states of its refusal to join the auction system for all greenhouse gas emissions quotas in the energy industry from 2013 onwards, duly made use of the 4 November 2008 ECOFIN Council to again set out its concerns - the fear of a hike in electricity prices due to volatility in the carbon market.
Ahead of the Commission-EP-Council meeting on the European Carbon Trading System (ETS) Directive, Poland's government advisor on ETS, Professor Krzysztof Zmjewsky, explained to a group of reporters on 5 November 2008 that the Polish government backed the three 20% targets (20% emissions reductions, 20% renewables and 20% energy savings) for 2020 but refuses to be penalised. The Commission calculates that Poland will receive €4 billion from the energy auctions (€3 billion in income and €1 billion from the 'old' member states through the solidarity mechanism). Professor Zmjewsky explained, however, that it would cost Poland €6.7 billion to buy emissions permits and Poland would therefore lose out by €2.7 billion. Poland wants a benchmarking mechanism to be set up for the energy industry under which the least polluting coal power stations would be granted quotas free of charge. This would lead to a higher cost per tonne of CO2 emissions but the system would make it possible to meet reduction targets at an overall cost to the Polish economy that would be four times lower than the auction system, he added. The Commission has told Poland that a benchmarking system would not encourage a transfer from coal to gas, but Professor Zmjewsky pointed out that changing over to gas would only increase dependence on Russia and jeopardise security of supply. (A.N./transl.fl)