In view of the planned implementation of the EU Organic Directive, Poland faces the challenge of expanding prices of coal and automotive fuels. According to the paper “Lega Artis”, coal prices can increase by up to 50% and car fuel prices by 50 cents per litre. However, it is not only drivers who will bear the costs – rising prices can contribute to increases in many sectors of the economy.
The Ministry of Climate and Environment intends to present a draft law implementing the directive by June of this year, hoping to adopt it by the end of 2024. Although the task is being consulted with representatives of the liquid, solid and gas fuel industries, details of the fiscal aspects of the Directive and the future law have not yet been disclosed by the Ministry.
The Directive gives associate States 2 options for implementation: the first is to impose on coal storage, fuel stations and gas suppliers obligations akin to those presently in force in factories and heat and power plants. The second option is to introduce a peculiar taxation on these fuels, which would have equivalent effects for all marketplace participants. Both are aimed at supporting efforts to reduce carbon dioxide emissions, especially from home furnaces and motor vehicles.
According to the Polish Chamber of Liquid Fuels, fresh loads can prove peculiarly severe for the sector. Prof. Konrad Raczkowski of the Institute of Economics and Finance of the UKSW warned already last December that the introduction of the ETS2 (Emissions Trading System) could consequence in a permanent simplification in disposable income in households. According to the expert, fresh regulations can lead to migration of companies to more tax-friendly jurisdictions outside the European Union, which in turn can lead to a simplification in social mobility and price increases.
Implementation of the ETS2 Directive: What does it mean for Poland?
The ETS2 (EU Emissions Trading strategy 2) is simply a fresh emissions trading strategy introduced by the European Union to reduce CO2 emissions from buildings, road transport and additional industries. It aims to complement another policies in the framework of the European Green Deal and to aid associate States accomplish the emanation simplification targets set out in the Effort Sharing Regulation.
The ETS2 is to be full operational in 2027 and, like the EU ETS, is based on the cap and trade principle. Fuel suppliers will be required to monitor and study their emissions, with a simplification of 42 percent by 2030 compared to 2005 levels.
Despite concerns about the possible impact on the economy, the fresh regulations aim to advance a cleaner climate and reduce negative environmental impacts. However, their impact on the Polish economy and society will require careful analysis and appropriate remedial action.
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There'll be a fresh tax. all citizen will pay it.
