Coal-dependent Poland to compensate industry for carbon costs | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Coal-dependent Poland to compensate industry for carbon costs

Poland’s parliament yesterday adopted measures to compensate its industry struggling to cope with surging electricity bills triggered by higher EU carbon emission costs. Heavily dependent on polluting coal, Poland’s power stations have faced rising costs to purchase pollution rights under the EU’s emissions trading scheme, costs which they have passed on to consumers including businesses.

Under the scheme Warsaw will spend around 900 million zloty (211 million euro, $237 million) per year beginning in 2020 on payments to energy-intensive firms to help them remain competitive and preserve some 1.3 million jobs, the enterprise and technology ministry said in a Friday statement.

“Around 300 companies from energy-intensive industries, like the chemical, metal and paper sectors, will be entitled to compensation for the costs of purchasing CO2 emission rights included in the price of energy,” it added. The legislation by the right-wing Law and Justice (PiS) government was backed by 420 lawmakers in the 460-seat lower house, with one vote against and six abstentions. This latest measures come after the government failed to implement a price cap for electricity last year.