Poland to receive 53% of free CO2 permits in 2013

Poland’s energy sector will be allocated around 53% of its annual CO2 emission permits for free in 2013 while western European countries will be paying for all their pollution, says a document obtained by Reuters.

Initially, Poland will distribute free permits for about 78Mt of CO2 but the number will gradually drop to 32Mt in 2019. From 2020, Poland will have to buy all its permits on the market.

Apart from existing plants, around 50 new energy facilities will be eligible to receive some new permits. This could mean as much as 16GW in capacity in 2013-20.

Poland, with its heavy reliance on highly polluting coal, holds the EU’s rotating presidency until the end of the year, and last month blocked a push by other member states for deeper the bloc’s CO2 reduction targets, says a Reuters report.

Under the EU rules power plants in western Europe will have to pay for every tonne of carbon dioxide emissions from 2013, but eastern countries, including Poland, get more time in a phased approach to help them grow their economies.