GWPF | 26 Oct 2015
Poland’s New Government & The Paris Climate Conference
Poland’s opposition Law & Justice party is on course for an election victory unprecedented in the country’s modern history after pledging a tougher stance on refugees and more state control over the economy. Tapping concerns among some of its conservative Catholic base that too many Muslims are being allowed into Europe, Law & Justice opposes German-led efforts forcing EU member states to take in more migrants. It’s against plans to curb CO2 emissions, which would hit the country’s unprofitable coal mining industry. It also seeks western support for a greater NATO presence on Polish soil. —Bloomberg, 26 October 2015
The likely winner of Poland’s Oct. 25 parliamentary election called on Tuesday for a renegotiation of a climate deal agreed last year by the European Union, saying the country needed more coal-based power stations. The European Union agreed last year, after marathon negotiations, to cut greenhouse gases by 40 percent by 2030, pitting heavy industry against green business. The emissions goal is also the basis of the EU position for the Paris climate change talks that start on Nov. 30. “We have to fight for this in the European Union. As to the climate package renegotiation is needed. We should not have agreed to that, it could have been vetoed,” PiS leader Jaroslaw Kaczynski said. —Reuters, 13 October 2015
1) Dark Clouds Over Paris As New Polish Government Opposes EU Climate Deal – Global Warming Policy Forum, 26 October 2015
2) New Polish Government To Demand EU Climate Deal Renegotiation – Reuters, 13 October 2015
3) Benny Peiser: Poland’s New Climate Policy & The Paris Summit – Keynote address to the Solidarność Trade Union Climate Conference, Katowice, Poland 29 May 2015
4) Round Of UN Climate Talks Ends With Divisions Looming For Paris Summit – Deutsche Presse Agentur, 26 October 2015
5) Czech Republic To Expand Brown Coal Mining Program – Associated Press, 19 October 2015
6) UK Parliament To Debate Abolition Of Department of Energy and Climate Change – The Times, 26 October 2015
7) Green Madness: UK Electricity Prices Are Now Highest In Europe – The Daily Telegraph, 24 October 2015
One potential sticking point between an eventual PiS government and Berlin is climate policy. Germany has been at the forefront of tougher EU climate policies, but Lipiński said Poland under PiS would “do everything it can to reverse the current policy because they believe coal remains Poland’s energy future.” Poland has huge coal reserves and depends on it for roughly 90 percent of its electricity needs. Waszczykowski said the current government made a “big mistake” last year by accepting an EU-wide target calling for a 40 percent emissions cut by 2030 because Poland needs “more time” to reach this target. PiS suggests it would want to negotiate opt-outs from EU rules on carbon emission reductions, and says the crucial role of coal for Poland’s economy deserves “special treatment.” Such a move would likely prove contentious with Berlin. —Politico, 23 October 2015
Poland’s leading opposition party is seeking to negotiate exemptions from the European Union’s rules on reducing carbon emissions because the nation’s energy security and economic development depends on coal. Law & Justice, which opinion polls show winning October’s general election, has vowed to toughen Poland’s stance on climate issues to protect the $526 billion economy, which relies on coal for about 90 percent of its electricity. While the government has been critical of EU emissions goals, it didn’t veto last year’s move toward stricter curbs on discharging heat-trapping carbon dioxide. “The strategy that we’re planning for the economy rejects the dogma of de-carbonization,” Piotr Naimski, in charge of preparing energy policy at Law & Justice, said in an interview last week. “The role of coal in Poland’s economy fully deserves to receive special treatment.” –Maciej Martewicz, Bloomberg, 22 June 2015
Whether Poland will continue to support the EU’s 2030 package or whether it will change in light of an inadequate Paris agreement will very much depend on the parliamentary elections this October. Poland’s main opposition party, the Law and Justice Party, opposes the EU’s 2030 climate package and has called it a serious blow for Poland’s economy. A victory for the opposition could spell the end of the decarbonisation consensus in Poland and the EU. Three years ago, the Law and Justice Party proposed a referendum on the EU’s 2020 climate package which the party opposed just as much. Although it was voted down by MPs in 2012, there is clearly a case for reviving the referendum proposal if the Paris climate accord fails to become legally binding. A referendum would bring a renewed focus on just how much current climate policies are costing people both in the developed and developing worlds and just how little those policies are giving in return. –Benny Peiser, Keynote address to the Solidarność Trade Union Climate Conference, Katowice, Poland 29 May 2015
Questions lingered about key aspects of a draft agreement on the world’s climate, as the final scheduled round of negotiations ended Friday before a the crucial summit, which opens next month in Paris. Developed countries have said that they would commit 100 billion dollars per year to a global climate fund by 2020, but did not come to a concrete proposal for funding after 2020. A bloc of developing countries, the Group of 77, which comprises 134 countries, said the financing commitments did not go far enough. Environmentalists said there had been too little progress on moving the draft forward. —Deutsche Presse Agentur, 26 October 2015
Speculation about machinery of government changes is set to reach a fever pitch this week as MPs debate a private member’s bill on the abolition of the Department of Energy and Climate Change. The bill, introduced by the maverick Tory MP Peter Bone, is unlikely to pass — in its current form at least. Nevertheless, for the hundreds of civil servants at DECC, the debate will not be much fun because its dissolution remains a distinct possibility. If Mr Osborne does choose to wind up DECC, he might wait until the new year to do so — but I certainly wouldn’t rule out his doing so before then. –Robin Pagnamenta, The Times, 26 October 2015
The abolition of DECC would not be difficult to achieve. Energy policy could be transferred to the Department for Business and climate policy moved to the Department for Environment, Food and Rural Affairs (DEFRA). Many unnecessary green expenditure items could be phased out altogether. Moreover, the current political climate is favourable for such action. With green opposition deeply divided and ineffective, it is an ideal opportunity for the government to abolish this unnecessary arm of the state without much fuss (although, in practice, it is likely to happen after the Paris conference). Such a move would be good for cost-effective energy policy, good for consumers and good for the Exchequer. –Benny Peiser & Daniel Mahoney, City A.M. 27 August 2015
Domestic electricity prices are now the highest in the Europe and 52pc more than median prices in the Continent, surpassing both Ireland and Spain for the first time, according to official figures. Expensive policies designed to slash our reliance on fossil fuels are disproportionately driving up bills compared to other countries, experts say. –Kate Palmer, The Daily Telegraph, 24 October 2015
1) Dark Clouds Over Paris As New Polish Government Opposes EU Climate Deal
Global Warming Policy Forum, 26 October 2015
Poland Hands Unprecedented Ballot Win to Conservative Party
Poland’s opposition Law & Justice party is on course for an election victory unprecedented in the country’s modern history after pledging a tougher stance on refugees and more state control over the economy.
The rise of Law & Justice marks the newest challenge for a European Union that’s more divided than at any time since former communist states joined in 2004. While Poland’s currency, stocks and bonds have underperformed emerging-market peers amid investor concern that the opposition will hurt banks’ profits or spend too much, analysts at banks including UniCredit SpA and PKO Bank Polski SA expect markets to rebound following the vote. Standard & Poor’s, which hasn’t changed Poland’s debt rating since 2007, said it may cut its outlook to stable if fiscal and monetary policies were reversed. […]
Tapping concerns among some of its conservative Catholic base that too many Muslims are being allowed into Europe, Law & Justice opposes German-led efforts forcing EU member states to take in more migrants. It’s against plans to curb CO2 emissions, which would hit the country’s unprofitable coal mining industry. It also seeks western support for a greater NATO presence on Polish soil.
Showdown over climate change
One potential sticking point between an eventual PiS government and Berlin is climate policy. Germany has been at the forefront of tougher EU climate policies, but Lipiński said Poland under PiS would “do everything it can to reverse the current policy because they believe coal remains Poland’s energy future.”
Poland has huge coal reserves and depends on it for roughly 90 percent of its electricity needs. Waszczykowski said the current government made a “big mistake” last year by accepting an EU-wide target calling for a 40 percent emissions cut by 2030 because Poland needs “more time” to reach this target.
PiS suggests it would want to negotiate opt-outs from EU rules on carbon emission reductions, and says the crucial role of coal for Poland’s economy deserves “special treatment.” Such a move would likely prove contentious with Berlin.
Poland’s New Government May Opt-Out Of EU Decarbonisation Policy
Poland’s leading opposition party is seeking to negotiate exemptions from the European Union’s rules on reducing carbon emissions because the nation’s energy security and economic development depends on coal.
Law & Justice, which opinion polls show winning October’s general election, has vowed to toughen Poland’s stance on climate issues to protect the nation’s $526 billion economy, which relies on coal for about 90 percent of its electricity. While the current government has been critical of EU emissions goals, it didn’t veto last year’s move toward stricter curbs on discharging heat-trapping carbon dioxide.
“The strategy that we’re planning for the economy rejects the dogma of de-carbonization,” Piotr Naimski, in charge of energy policy at Law & Justice, said in an interview last week. “The role of coal in Poland’s economy fully deserves to receive special treatment.”
Poland will negotiate hard to win “respect” from EU partners for its stance on coal, which Naimski said mirrors the special exceptions, or “opt-outs,” from the bloc’s rules won by a number of other member nations. The country treats development of its coal deposits as a keystone of its energy security in a region dependent on Russian oil and gas imports.
“Nobody is thinking of leaving the EU, but there is an idea to again look at Poland’s unique situation,” he said.
2) News Polish Government To Demand EU Climate Deal Renegotiation
Reuters, 13 October 2015
The likely winner of Poland’s Oct. 25 parliamentary election called on Tuesday for a renegotiation of a climate deal agreed last year by the European Union, saying the country needed more coal-based power stations.
The European Union agreed last year, after marathon negotiations, to cut greenhouse gases by 40 percent by 2030, pitting heavy industry against green business.
The emissions goal is also the basis of the EU position for the Paris climate change talks that start on Nov. 30. There is still some scope for discussion on how to achieve the emissions goal, but Poland is likely to meet stiff resistance from its EU partners if it attempts to reopen the climate deal.
Poland, whose economy depends on highly polluting coal, has long opposed EU initiatives to curb carbon emissions, but the conservative main opposition Law and Justice (PiS) party, tipped to win the election, says it will take a much tougher stance if it gains power.
“The demand for electricity, if our economy develops fast, should increase at double the pace, so there should be many more power plants,” PiS leader Jaroslaw Kaczynski said at a televised briefing in the town of Konin, home to a lignite coal-fuelled power station owned by ZE PAK.
“We have to fight for this in the European Union. As to the climate package renegotiation is needed. We should not have agreed to that, it could have been vetoed,” Kaczynski said.
3) Benny Peiser: Poland’s New Climate Policy & The Paris Summit
Keynote address to the Solidarność Trade Union Climate Conference, Katowice, Poland 29 May 2015
[…] Last September, Poland’s three largest trade unions, including Solidarność, wrote to the Prime Minister and asked him to reject the EU’s 2030 climate package, the main objective of which is to unilaterally reduce CO2 emissions in the EU by 40 percent by 2030.
The trade union leaders warned that the implementation of this unilateral policy change would mean a three-fold increase in wholesale electricity and heating prices. This in turn might lead to the loss of nearly one million jobs in Poland.
It was to no avail. The Polish government ultimately yielded to EU pressure and agreed to sign up for the targets.
But there was no consensus in Poland. One of the most remarkable elements of Poland’s recent Presidential election campaign was Andrzej Duda’s opposition to the 2030 climate package and to the idea of unilateral decarbonisation.
Mr Duda’s ultimate victory appears to have been won at least in part because he was seen to be holding the government and the outgoing President to account for agreeing to the EU’s climate package despite all the economic and security risks that it entailed.
His victory came at an auspicious time. 2015 is to be the year of a new global climate agreement and negotiations are under way ahead of the summit in Paris later this year.
If a deal is reached then the outcome will have important economic, social and industrial implications for Europe in general and for Poland in particular. […]
Finally, let me return to the crucial role Poland plays in navigating the future of Europe’s climate and energy policy.
In January, President-Elect Mr Duda criticised the 2030 climate package in the European Parliament. He pointed out that the EU had been trying to persuade the rest of the world to follow its decarbonisation policy:
“The problem is,” he said “that our plan that we wish to realise, which is to reduce emissions by 40%, is ultimately not accepted by the rest of the world – let’s be blunt – which will result in the fact that in this perspective the European economy will be far less competitive.”
Whether Poland will continue to support the EU’s 2030 package or whether it will change in light of an inadequate Paris agreement will very much depend on the parliamentary elections this October.
Poland’s main opposition party, the Law and Justice Party, opposes the EU’s 2030 climate package and has called it a serious blow for Poland’s economy. A victory for the opposition could spell the end of the decarbonisation consensus in Poland and the EU.
Three years ago, the Law and Justice Party proposed a referendum on the EU’s 2020 climate package which the party opposed just as much. Although it was voted down by MPs in 2012, there is clearly a case for reviving the referendum proposal if the Paris climate accord fails to become legally binding.
A referendum would bring a renewed focus on just how much current climate policies are costing people both in the developed and developing worlds and just how little those policies are giving in return.
4) Round Of UN Climate Talks Ends With Divisions Looming For Paris Summit
Deutsche Presse Agentur, 26 October 2015
Questions lingered about key aspects of a draft agreement on the world’s climate, as the final scheduled round of negotiations ended Friday before a the crucial summit, which opens next month in Paris.
Countries are trying to find common ground to hammer out a global agreement that would limit world temperature increases caused by greenhouse gas emissions to 2 degrees Celsius for the foreseeable future.
A 20-page draft agreement drawn up this month was the basis for the talks, which began Monday in Bonn, Germany. But some of the articles in the draft became sticking points, giving an indication of what could become major issues during the summit, which starts on November 30.
“Political leaders need to provide the scale of support – including finance and technology – that will catalyse the just transition to a safer and renewable energy world. Additional support for poor and vulnerable countries is a critical element of a new deal,” said Tasneem Essop of non-governmental organization WWF Europe.
Developed countries have said that they would commit 100 billion dollars per year to a global climate fund by 2020, but did not come to a concrete proposal for funding after 2020. A bloc of developing countries, the Group of 77, which comprises 134 countries, said the financing commitments did not go far enough.
“The Group of 77 needs COP21 to be a success. We have no other option: For developing countries, climate change is a matter of life and death,” the bloc’s ambassador, Nozipho Joyce Mxakato-Diseko, said on Twitter.
Other environmentalists said there had been too little progress on moving the draft forward.
“It is frustrating that, just five weeks before the beginning of the conference, the text is not concrete or decisive enough,” Greenpeace expert Martin Kaiser said.
But negotiators are cautious about overloading a draft agreement before the Paris talks, likely wary to repeat a mistake perceived to be partly responsible for the failure of 2009 talks in Copenhagen that were supposed to reach a binding agreement.
5) Czech Republic To Expand Brown Coal Mining Program
Associated Press, 19 October 2015
PRAGUE — The Czech government has approved a plan to expand the mining of lignite, a fossil fuel known as brown coal.
Despite protests from environmentalists and local citizens, the government is allowing the mining to expand beyond previously set limits to get access to up to 120 million metric tons of coal in the northwest of the country.
The limits were set in 1991 to prevent environmental damage as brown coal is a major source of greenhouse gases.
Trade and Industry Minister Jan Mladek says the coal is needed to secure the country’s energy supply.
6) UK Parliament To Debate Abolition Of Department of Energy and Climate Change
The Times, 26 October 2015
Robin Pagnamenta
In Whitehall parlance it is known as “mogging” — slamming together or scrapping departments to save cash. Speculation about machinery of government changes is set to reach a fever pitch this week as MPs debate a private member’s bill on the abolition of the Department of Energy and Climate Change.
The bill, introduced by the maverick Tory MP Peter Bone, is unlikely to pass — in its current form at least. Nevertheless, for the hundreds of civil servants at DECC, the debate will not be much fun because its dissolution remains a distinct possibility.
With George Osborne asking for departments to prepare for budget cuts of as much as 40 per cent, winding up one or two would help to ease the burden on those that are considered indispensable. Ministers are urgently running the rule over possible savings in advance of the chancellor’s autumn spending review on November 25.
DECC has always been an unwieldy beast, tossed together from bits of the Department for Environment, Food and Rural Affairs and the old DTI in a shake-up led by Gordon Brown in 2008.
It remains relatively small and could simply be broken up, with the energy policy parts rolled into the Department for Business, Innovation and Skills, the DTI’s successor, and climate policy folded back into Defra. After all, that is the structure that existed only seven years ago.
Best of all for Mr Osborne, unlike most other departments, DECC’s abolition would have no direct impact on public services. Outside Whitehall, few people would notice. Mr Osborne is not known for his sentimentality towards such changes, especially when the political risks are so low. His hunt for cost savings makes DECC a prime target.
However, there are risks here. Machinery of government changes can be blunt. The disruption can last for years, as experienced Whitehall mandarins get bogged down by the logistics and the need to forge relationships with new colleagues and permanent secretaries. […]
The timing of the autumn spending review also poses a tricky challenge for Mr Osborne, coming only a week before the start of the UN climate policy conference in Paris.
Scrapping DECC then would hardly send an encouraging message on British leadership on the problem of climate change. Nor would it chime well with David Cameron’s dubious pledge to lead the “greenest government ever”.
It would also deal an extremely awkward hand to Amber Rudd, DECC’s well-respected secretary of state, who was appointed only six months ago. If Mr Osborne does choose to wind up DECC, he might wait until the new year to do so — but I certainly wouldn’t rule out his doing so before then.
Full post
see also: Benny Peiser & Daniel Mahoney: It’s The Right Climate To Scrap The Department Of Energy And Climate Change: Abolishing DECC would be good for cost-effective energy policy, good for consumers and good for the Exchequer.
7) Green Madness: UK Electricity Prices Are Now Highest In Europe
The Daily Telegraph, 24 October 2015
Kate Palmer
Failing competition and expensive Government projects mean our pre-tax electricity costs oustrip every EU country, for the first time. Expensive policies designed to slash our reliance on fossil fuels are disproportionately driving up bills compared to other countries, experts say.
Domestic electricity prices are now the highest in the Europe and 52pc more than median prices in the Continent, surpassing both Ireland and Spain for the first time, according to official figures.
Experts blame ineffective competition between suppliers and warn that expensive energy projects, including the proposed “Hinkley C” nuclear reactor, could further drive up energy costs at home.
The typical British household pays 14.8p for every unit of electricity or “kilowatt hour” (kWh) they use, before taxes are taken into account, according to analysis by the Department for Energy & Climate Change (Decc).
By contrast, the pre-tax price in Denmark is just 9.35p/kWh and 5.75p/kWh in Bulgaria, according to the data collected from Eurostat, the statistician.
These are the prices charged by energy companies before tax is added, which in Britain is set at a reduced VAT rate of just 5pc – below the usual 20pc charge and among the lowest in Europe.
The pre-tax price includes the wholesale price of electricity, transmission costs and other charges, for example the costs of funding green energy projects and subsidising low-income households.
Once tax is added on top, Danish households pay the highest final price in Europe despite having access to cheap electricity due to its North Sea oil and gas resources. More than half (57pc) of the final electricity price is made up of VAT, taxes and levies.
Germany also imposes one of the highest taxes on electricity in Europe, where 52pc of the bill is made up of tax.
But according to Eurostat, Britain has seen the largest price increase out of any EU member state in the past two years, as overall bills increased 12pc, behind an EU average of 3pc.
