The Polish Electricity Association encourages the European Commission to intervene on the CO2 emission allowances market by immediately convening a meeting of the Climate Change Committee. According to PKEE, Brussels has the right to take such extraordinary initiative because a legal condition connected with the level of carbon prices has been recently met.
Due to the observed significant increase in carbon prices in the last months, in accordance with art. 29a of the EU ETS Directive, the European Commission has the tools allowing an intervention on the market in a situation of continuing and consistent overly high prices. This provision enforces on the Commission an obligation to hold a meeting of the Climate Change Committee and propose a direct solution. This obligation comes into force when for the period longer than six consecutive months carbon prices remain over three times higher than the average carbon price in the two preceding years. According to our calculation, this condition is already met.
Therefore, taking into account this unconditional provision, we call on the Commission to hold the meeting of the Climate Change Committee which should take a decision enabling the Member States to speed up auctioning of part of their allowances or auctioning of up to 25% of allowances from the New Entrants Reserve.
We hope that this situation on the carbon market will result in adequate reaction from the European Commission in order to avoid the risk of carbon leakage in energy-intensive industry and energy poverty in Europe. We are open to conduct a constructive dialogue to find a proper solution aimed at smoothing the effect of recently observed carbon price fluctuations.
At the same time PKEE would like to stress that Poland supports the EU policy to reduce CO2 emissions, but we must not allow for overly rapid carbon prices increases to sustain the competitiveness of the European economy and social welfare of the citizens.