03 March 2008

Professor Maciej Nowicki, Minister of the Environment, took part in debate held by the European Environment Council, on 3 March 2008, in Brussels. Environmental Ministers of the EU Member States and Environment Commissioner Stavros Dimas, and also a representative of the Slovenian presidency participated. 
 
The Council held policy debate on the Climate Action and Renewable Energy (CARE) package presented by the Commission on 23 January and the proposed Regulation to reduce CO2 emissions from new cars. The links between the CARE package and the negotiations on a global climate agreement to succeed the Kyoto Protocol were discussed over working lunch with participation of the Executive Secretary of the UN Framework Convention on Climate Change, Yvo de Boer. 

During the meeting in Brussels, Minister Maciej Nowicki presented Poland’s Position on these issues. He also emphasised that the Polish Government approves with appreciation the proposals included in the CARE package, and while the Draft Proposals for the Directives as prepared by the European Commission aim at right direction, however – in the Government’s opinion – those require a number of corrective amendments to be introduced thereto. 

"- The most our objections – said Polish Environmental Minister – concern greenhouse gas emission trading scheme (ETS). Polish Government fully accepts the fact that since 2013 the national emission reduction cap will be substituted by a single Community cap within the EU ETS. However, we cannot agree that the Polish energy sector be forced to purchase the CO2 emission allowances beginning already from 2013". 

"- It has to be stressed that, in Poland, 95 % of electric energy and 80 % of heat is generated from combustion of coal, the huge resources of which Poland possesses. Although this provides a high energy safety to our country, but at the same time it is a cause for considerable emission of carbon dioxide. Poland is aware of the need to restrain ultimately from the coal monoculture and it has undertaken relevant actions aimed at changing the present situation however it will be a long-lasting process. But, the need to purchase 100 % of the emission allowances by the power plants already in 2013 would make them to spend about 5 billion euro annually. Consequently, the prices of electric energy would rise by 50-70 percent. – Such a situation – continued Professor Maciej Nowicki – would be then unfavourable to the general public, and would deteriorate the living standard of Polish citizens and could also affect industrial sector which being possibly not in position to withstand competition would possibly move to the countries with the lowest prices of energy and cheapest workforce. It would be yet much worse if such situation affects also power and heating plants. The growth in heat prices would cause mass resignation of the services rendered by these systems and change to small boiler plants, not covered by the EU ETS, burning coal in a non-effective manner, thus leading not to do reduction but to a rise in CO2 emissions."

“- Therefore, Poland speaks for a mixed system which would be in its prevailing part based upon free of charge allocation of the emission reduction allowances in sectors covered by the EU ETS, building on the benchmarking method, but in its minor part - upon the auction system. In Poland’s opinion, any rigid sharing into the ETS and NON-ETS systems contradicts the principles of the cost flexibility and effectiveness. Decisions on transferring the revenues between both systems have to be left to exclusive discretion of the UE Member States."

When delivering his address, Polish Environmental Minister said also that the 2013-2020 CARE package devotes much attention to the CO2 emission reduction method based upon capture and storage thereof. The attitude of the Government of Poland towards development of the carbon capture and storage technology is generally positive, however it has to be stressed that this technology is still in research and development phase. Therefore the Government approves with appreciation the non-binding nature of the Directive which leaves the choice in this matter to discretion of the Member States. 

The obligation on all Member States to expand generation of their energy from renewable energy sources is another issue which was discussed under the CARE package. Polish Government expressed satisfaction that development of renewable energy sources became one of priorities in UE. However, the Government still considers the question whether all Member States, including Poland, will be in position to withstand in a cost-effective manner the ambitious targets set out in the Directive. 

Although the CARE package discussed during the meeting in Brussels requires considerable improvement, it however forms a good basis for establishment of tools serving for greenhouse gas emission reduction by 20 %. That was declared on the 13th Session of Conference of the Parties the UN Framework Convention on Climate Change held in Bali, and it will be further discussed during the Poznan and Copenhagen Conferences. 

As regards proposed Regulation of the European Parliament and of the Council to reduce CO2 emissions from new cars, the Polish Environmental Minister said that the Polish Government encourages the objective of this Draft Regulation. “- However, some doubt may arise as regards the method proposed to achieve its overall objective, i.e. reduction of CO2 emission from vehicle transport" – said Professor M. Nowicki. “The Regulation could even have negative effects on competitiveness of the European manufacturers active on the non-European markets, where such standards are not mandatory." The Minister also said that the amounts of monetary penalties for exceedance of CO2 emissions are decisively too high. Moreover, it is also doubtful whether right is the proposal to transferring these revenues to the EU budget, but not to national budgets of individual Member States with the aim to finance, inter alia, their environmental projects on automotive market (for instance, to encourage purchase of environmentally friendly cars). According to Professor M. Nowicki, the date proposed for entering into force of the Regulation has to be postponed by 2015, since the automotive sector should be given appropriate time to adapt to new provisions calling for the more stringent emission requirements. 

During his visit in Brussels, Minister M. Nowicki, participated also in the aforementioned working lunch where discussion concentrated mainly on problematic issues concerning the ambitious objectives established by the European Union yet in March 2007 to be reached by 2020 (so called 3x20%, i.e. 20% of greenhouse gas reduction, 20% of renewable energy share in final energy consumption, and expansion of the energy efficiency by 20%). In course of discussion notes were also made of the role of Poland as the host-country of the UNFCCC 14th Conference of the Parties (COP14) and the 4th Meeting of Parties to the Kyoto Protocol (MOP4), to be held in Poznan in this December - the greatest such event that is to be organised in Poland so far. 

The Host Country Agreement concerning organization in Poznan, Poland, of the UNFCCC 14th Conference of the Parties serving also as the 4th Meeting of the Parties to the Kyoto Protocol was signed on 17 January 2008, in Bonn, Germany, by Professor Maciej Nowicki, Polish Environmental Minister, and Mr. Yvo de Boer, Executive Secretary of the UN Framework Convention on Climate Change.