a Business Spectator publication

Poland to receive 53% of free CO2 permits in 2013

By Patryk Wasilewski

WARSAW (Reuters) - Poland's energy sector will get some 53 percent of its annual carbon dioxide emission permits free of charge in 2013 when western European countries start paying for all their pollution, an document obtained by Reuters showed on Tuesday.    

Initially, Poland will distribute free permits for about 78 million tonnes of CO2 emissions, but the number will gradually drop to 32 million tonnes in 2019. In 2020 the Polish companies will have to buy all permits on the market.      

Besides existing plants, some 50 new energy installations are eligible to receive at least some free permits, the Economy Ministry proposal shows.            

These could amount to new capacity of 16 giga-watts in 2013-2020, a government adviser told Reuters this month.         

Poland, with its heavy reliance on highly polluting coal, holds the EU's rotating presidency until the end of the year, and last month blocked a push by other member states for deeper the bloc's CO2 reduction targets.      

Under the EU rules power plants in western Europe will have to pay for every tonne of carbon dioxide emissions from 2013, but eastern countries, including Poland, get more time in a phased approach to help them grow their economies.           

Originally Poland won a right to receive 70 percent of permits for free, but the limit was lowered because of higher energy production than consumption. 

The Economy Ministry's proposal is still subject to talks with energy sector representatives.