Poland Favors Delay of New Carbon Market for Transport and Heating

(Bloomberg) -- The European Union should consider postponing its new carbon market for transport and heating fuels to give consumers more opportunity to invest in clean energy sources, according to Poland’s deputy climate minister, Krzysztof Bolesta.

The Emissions Trading System 2 is due to start in 2027 as part of the EU’s massive effort to reach climate neutrality by mid-century. The cap-and-trade program will come with a dedicated fund to shield the most vulnerable — estimated to be at least 87 billion euros from 2026 to 2032.

“The implementation of ETS2 means additional costs for households already hurt by energy costs,” Bolesta said in an interview in Brussels. “We should ideally give them more time and help alleviate the financial burden of moving to green alternatives,” he added, without specifying a timeline.

His comments underscore the challenge for the EU in staying on track in its push to make the bloc more sustainable, while delivering on a pledge to lower energy prices and keep its industries competitive. Poland in January will take over the rotating presidency of the EU, helping set the tone of political debates in the region.

To reach its 2030 goal of cutting greenhouse gases by 55% from 1990 levels, Europe must in the coming years implement a package of green reforms spanning the entire economy. Loosening policies in one sector, such as transport or heating,, would require tighter restrictions elsewhere at a time when high energy prices and weak economic growth fuel opposition to the transition.

Czech Prime Minister Petr Fiala told his country’s parliament earlier this year that he will seek to postpone the new emissions trading system. Slovakian Environment Minister Tomas Taraba in September called on the commission to reconsider the measure, indicating wanted to see a broader coalition on the issues. 

Any changes to the new carbon market would require consent by the European Commission, the EU’s executive, which has staunchly defended the plan. It would also need qualified majority backing from member states and endorsement from the European Parliament. 

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