EU Green Transition Policy: What It Means for Poland
The European Union's green transition framework establishes binding targets for emissions reduction, renewable energy deployment, and energy efficiency improvement across all member states. For Poland — the EU's largest coal-dependent economy — these requirements represent both a significant challenge and a transformative opportunity.
Fit for 55 package
The Fit for 55 legislative package, adopted in its final form in 2024, aims to reduce the EU's net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. Key elements affecting Poland include the strengthening of the EU Emissions Trading System (ETS), the establishment of a Social Climate Fund, and revised targets for renewable energy and energy efficiency.
Under the revised Renewable Energy Directive (RED III), the EU-wide renewable energy target for 2030 has been raised to 42.5%, with an ambition of reaching 45%. Poland's national contribution, as outlined in its updated National Energy and Climate Plan, targets approximately 32% renewable share by 2030.
Carbon Border Adjustment Mechanism (CBAM)
The CBAM, which entered its transitional phase in October 2023, introduces a carbon price on selected imports to prevent carbon leakage — the relocation of production to jurisdictions with less stringent climate policies. Sectors covered include cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen.
Poland's industrial sector, particularly steel and cement production, faces direct exposure to CBAM. Companies must adapt their production processes or face cost increases that could affect competitiveness in both domestic and export markets.
Just Transition Fund
Recognising that the costs of the green transition are not evenly distributed, the EU established the Just Transition Fund (JTF) to support regions most affected by the move away from fossil fuels. Poland is the largest beneficiary of the JTF, with an allocation of approximately EUR 3.5 billion for the 2021–2027 programming period.
- Polish JTF allocation: approximately EUR 3.5 billion
- Target regions: Śląskie, Wielkopolskie, Dolnośląskie, Łódzkie, Lubelskie, Małopolskie
- Focus areas: economic diversification, reskilling, small business support
- Coal mine closure timeline: last mine by 2049 (current government agreement)
National Energy and Climate Plan
Poland's updated National Energy and Climate Plan (KPEiK), submitted to the European Commission in 2024, outlines the country's strategy for meeting EU targets while managing the socioeconomic impact of the transition. Key elements include the expansion of offshore wind, nuclear energy development (first unit expected by 2035), and continued growth of prosumer solar installations.
The plan acknowledges that coal will continue to play a role in Poland's energy mix during the transition period but commits to a significant reduction in coal's share from approximately 65% of electricity generation in 2022 to below 30% by 2030.