Polish prime minister calls for freezing of carbon allowances

Polish prime minister calls for freezing of carbon allowances

Mateusz Morawiecki, the Polish prime minister, has called for the freezing of CO 2 emission allowances prices to help bring down the cost of energy.

Under the EU's long-term greenhouse reduction initiative, the EU ETS, European companies must purchase carbon allowances on the EU carbon market or through the EU ETS auctions to compensate for the excess greenhouse gases they emit.

Poland relies heavily on coal in electricity production so the EU emission allowances' emission allowances have a big influence on the price of electricity in the country.

For the sake of citizens, we need to free up a lot of CO 2 emission rights, preferably flood the market with tens or hundreds of millions of rights, Morawiecki said in Prague at an informal meeting of the European Council on Friday. We need to freeze the price at the level of EUR 20 -- 30 in the future. The right to emit one tonne of greenhouse gases costs about 70 euro. The prices of such allowances are influenced by the market.

Poland has been advocating for a cap on them for months.

I asked for a suspension of the market price-PAP for at least six months, if not 12 months, or even two years, according to Morawiecki.