The IPPC Directive – Challenges for Poland up to 2016
Debate
24.09.2009, Polish Press Agency (PAP), ul. Bracka 6/8, Warsaw, 11.00 a.m.
Turbulent discussions related to execution of the EU-ETS Directive are still underway, and we are already facing a new, and perhaps even more important, challenge – the IPPC Directive. Obligations, which translate directly into costs, have begun to mount up and have become more and more difficult to fulfil. Aside from investments connected with execution of the provisions of the derogation of December 2008, we will need to bear enormous costs – to modernise (which seems unrealistic in the case of many Polish power plants) or construct new capacities, as the provisions of the Directive will cause a huge number of closures as a result of the advanced age of Polish installations. This can jeopardise the security of electricity and heat supply.
Work on the Directive, which is to enter into force in 2016, is underway. The modifications introduced by the European Commission, such as an amendment to the definition of combustion sources for existing installations and increasing of standards relating to SO2, Nox and particulates emissions can have an enormous influence on the situation in which generators of heat and electricity find themselves. The requirements of the Directive cause the need for execution of broadly construed pro-environment investments. Whilst the IPPC is aimed at improving air quality, it is worth bearing in mind that in our case such provisions can lead inter alias to the liquidation of a huge number of heating structures. The level of accumulation of the restructuring process in time, and the tempo of this process, is a problem. The amendments to the Directive are incredibly important, but must be implemented in an economically feasible and socially acceptable way. That is why the opinion that execution of the assumptions of the IPPC should be spread over a longer period of time is quite widespread. Is this necessary? Swift execution of the Directive could lead to limitation of the production capacities of the Polish economy, so postponement could also help in achieving a more efficient and cost-effective means of doing this.
The challenges connected with the necessity of modernising the Polish energy sector, a lack of diversification of requirements between basic and peak sources, executive market risk, maintenance of financial fluidity in light of a gigantic scale and accumulation of expenditures in time, the influence of investments on energy prices, and maintenance of competitiveness and avoidance of an economic breakdown, are enormous. The process of implementation of the Directive can divide Member States into better and worse ones, as the state of the economy across the various EU countries is very diverse. Restrictive execution of the adopted assumptions may significantly disrupt Polish companies financial liquidity. In addition, there is to problem of the feasibility of energy companies (the energy market is regulated), increasing prices and competetiveness.
Poland wants to execute the tasks set before the EU, but in a cost-effective manner. However, the trend for heightening of emissions-related standards shows a certain distaste for negotiations. The question is therefore whether and how we can influence the provisions of the IPPC Directive so as to minimise its negative consequences.
The following experts were invited to take part in the debate:
- Marzena Chodor, Policy Officer DG Environment, Head of Unit, DG Environment, European Commission;
- Krystyna Panek-Gondek, Deputy Director of the Climate Changes and Atmosphere Protection Department, Ministry of Environment;
- prof. Krzysztof Zmijewski, Secretary General, Public Board of the National Programme for Reduction of Emissions;
- Wojciech Jaworski, Manager of KASHUE;
- dr inż. Wojciech Bujalski, University Research Centre of Energy and Environment Protection, Institute of Thermal Engineering, Warsaw University of Technology;
- Tomasz Podgajniak, Vice-president of the Management Board, Proeko CDM;
- Janusz Kucharski, Manager of Power Industry Development Section, Zakłady Azotowe Puławy S.A.;
- representatives of the management boards of many companies from the energy sector.
Debate was opened ill be chaired by Mrs Marina Coey, President of the Management Board Zarządu, Procesy Inwestycyjne Sp. z o.o.
Debate was chaired by Professor Krzysztof Zmijewski, Secretary General of the Council of The National Programme for Reduction of Emmissions.
Participation in the debate was free of charge.
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