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Energy Poland Climate Economic Policy

Poland Energy Transformation

Energy transformation is one of the major pillars of the European Commission’s (EC) strategy for economic recovery. This approach is compatible with Poland’s economic priorities of energy sector transformation to meet EU Green Deal obligations: 

  • Increase energy efficiency in the construction sector, including thermo-modernization of buildings and conversion of heat sources to ecological ones. Poland has been implementing “My Electricity” and “Clean Air” programs that aim to improve air quality.
  • Increase the role of renewable energy sources (RES) in the Polish energy sector transformation, with on-shore and off-shore wind and solar as major renewables in the Polish power sector.  In 1990, RES accounted for 2.5% of Poland’s energy mix, while currently it is almost 15%. Poland’s goal is to achieve RES share in the final electric power consumption at the level of 21-23% by 2030.
  • Innovative technology development, including electromobility (building of charging station networks) and hydrogen technologies.
  • Support for development of natural gas infrastructure and gas exploitation, as a transition fuel for Poland’s energy transformation.
  • Development of smart grid systems and implementation of intelligent meters.

Completion of the above tasks requires adequate financing sources.  Poland will become the largest beneficiary of the EU Just Transformation Fund receiving 8 billion Euro, out of a total fund total of 40 billion Euro allocated for 2020-2027. This fund is a part of the Just Transition Mechanism, which is a financial arm of the European Green Deal. The mechanism should attract financing for supporting the climate neutrality transformation process within the EU, offering an overall financial package valued at 100 billion Euro. The Just Transition Mechanism will alleviate the dependence on fossil fuels by providing tailored financial and practical support to help generate the necessary investments in the regions most affected by the transition. 

The Sustainable Investment Plan, another EC program presented in January 2020, should mobilize public investment and help unlock private funds through EU financial instruments, notably Invest EU, leading to a predicted 1 trillion  Euro worth of investments. This is needed if the EU is to become the first climate-neutral bloc in the world by 2050. Given their current reliance on coal and lignite, Poland is expected to be one of the major beneficiaries. Apart from this mechanism, Poland will receive 30 billion Euro from Rebuilding Mechanism. 

For more information contact our office in Warsaw, Poland at office.warsaw@trade.gov.  

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