Commission hampers Polish coal expansion plans | WPN World People News

Environmental groups gave a cautious welcome to a decision by the European Commission to block some new high-emitting coal power plants in Poland from benefiting under a €7.1 billion energy modernisation plan. The Commission’s decision does not fully reveal how many new coal power plants have been removed from Poland’s plan. The groups also warned that a decision to approve free emission allowances for unbuilt coal plants under the EU Emissions Trading Scheme (ETS) was a mistake.

Commenting on the Commission decision, Julia Michalak, climate policy officer for Climate Action Network Europe, said: "The Commission's decision shows that the tide is turning against coal in Poland and that it's high time to invest in clean energy. Prime Minister Tusk must now take stock, back green investments and work with European counterparts on a plan for stronger EU climate and energy action."

Under the EU Emissions Trading Scheme Directive (EU ETS) law agreed in 2009, power producers must pay for all emission allowances after 2012. But central and eastern European countries can apply for exemptions lasting up to seven years. In return for this flexibility, the countries concerned must develop an investment plan to modernise their power sectors and diversify their energy mix.

The Commission found that several projects in the €7.1 billion Polish investment plan did not meet the EU ETS legal requirements. Over three quarters of the investments included in the original Polish plan were for projects linked to gas and coal, which would lock Poland to highly polluting emissions from its power sector for decades.

Legality of Polish free allowances disputed

EU law bans power plants that were not part of the ETS before June 2011 from benefiting from free allowances. But Poland's interpretation of the rules would allow coal plants that are yet to be built to break this rule, argue the organisations. Last year, environmental groups lodged a complaint with the Commission accusing Poland of a serious infringement of ETS rules. They argue the Commission not only made a mistake in approving the free allowances but has so far turned a blind eye to Poland's deliberate attempt to bend the law.

Source: Greenpeace