EU’s low carbon strategy will undermine Polish chems industry - PCC

27 June 2012 17:05  [Source: ICIS news]

LONDON (ICIS)--The Polish chemical industry will be among industries severely undermined if the EU pursues its Low Carbon Roadmap for 2050, the Polish Chamber of Commerce (PCC) said on Wednesday.

Launching a study that attacks the EU's plan to target an 80-95% reduction in carbon dioxide emissions across the bloc by 2050, PCC energy expert Boleslaw Jankowski said at the European Parliament: “The effects will be catastrophic for the Polish economy and budget.”

Arguing that Poland is in the exceptionally difficult position of relying on the burning of coal for around 90% of its electricity, the Polish government has several times blocked attempts by the EU to ratify the decarbonisation goal.

The Polish Chamber of Chemical Industry (PIPC) has backed the use of the veto.

The PCC study, funded by Polish power utilities Tauron and PGE, concludes that if Poland complies with the measures in the roadmap it will suffer a GDP slump of 10% by 2030.

Other consequences will be the annual economic costs, which will grow to €22.7bn ($28.4bn) after 2050 and a 400% hike in electricity prices after 2020, the study adds.

Another criticism of the roadmap strategy raised by the study is that it will force chemical and other producers to move to non-EU countries where climate control regulations are not so strict, thereby causing “carbon leakage” whereby CO2 emissions are not reduced but are merely shifted to another location.

The Polish Climate Coalition, an association of environmental and other NGOs, has backed EU Climate Action commissioner Connie Hedegaard's decision to continue pursuing ratification of the decarbonisation target.

The PCC report was not credible because it ignored huge gains that would be made from energy efficiency, renewable energy and energy innovation, that would be driven by the implementation of roadmap objectives, it said.

($1 = €0.80)

By: Will Conroy
+44 20 8652 3214

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