Tusk urges EU to maintain free emissions allowances

Poland, along with several other countries, has urged the European Union to continue granting free emission allowances to industry. The Prime Minister, Donald Tusk, said a joint letter had been sent to the European Commission, co-signed by Austria, Belgium, Bulgaria, Italy and Slovakia.

The issue forms part of discussions ahead of the EU summit in Brussels, where leaders are considering changes to the emissions trading scheme. The debate is also linked to rising energy prices following the conflict in the Middle East.

Tusk said the European Union should take greater account of national circumstances. Poland remains heavily reliant on coal, which provides around half of its electricity, and free allowances help to offset the costs.

The emissions trading system has been in place since 2005 and requires companies to pay for carbon dioxide emissions, although some sectors receive a portion of allowances free of charge. Planned reforms would extend the system to heating and transport from 2028, a move critics warn could drive up energy costs for households.

(reuters, lud)