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Legal Eye: Coal and Kyoto

Coal is, however, the primary source of fuel for generating energy (electrical and heat-generation) in Poland. And this fuel is located in Poland. Coal is not only a thorny issue between the European Union and Poland when it comes to domestic coal industry policies, but also plays a significant role in a disagreement with the EU over environmental policy.

Greenhouse gases

The issue relates to reductions in greenhouse gas emissions. The European Union is a strong proponent of the Kyoto Protocol to the United Nations Framework Convention on Climate Change. Poland has been a party to the Kyoto Protocol since 2002. The Protocol requires developed countries to reduce their emissions of greenhouse gases (such as CO2) by a certain percentage. It is claimed that this unusually warm winter is just a hint of the climate changes to come, if we don't stop polluting.

So far, Poland has been on track to meet its declared Kyoto goals to reduce greenhouse gas emissions by six percent in 2012 in comparison to 1988. In fact, because of the effects of the changeover to a market economy, Poland currently has "emissions reserves" (as is the case with most of the new EU member states). In other words, Poland polluted less in past years than it could have done.

More is less

The EU declared an overall reduction of eight percent, as opposed to Poland's six percent. In doing so, however, the "old" members of the EU agreed to share the burden of the potential economic costs of these reductions. Thus, more developed countries (e.g., Germany and Great Britain) agreed to make bigger cuts, while less developed countries (e.g., Spain, Greece and Ireland) could actually increase their emissions. This plan was agreed upon before the ten new member states joined the EU in 2004.

Now comes the dilemma. Must Poland only satisfy its six-percent declaration or must it comply with the EU goal of eight percent? Can Poland make use of its emissions reserves or must it keep making further cuts? Citing the need for economic development, Poland argues that it intends to stabilize its emissions, and later work on further reductions. This may mean dipping into the reserves. On these interpretational questions, determining who is right will ultimately need to be resolved in high-level Poland and EU discussions.

 

Coal hole

When it comes to carbon- dioxide emissions, Poland is frank that these emissions relate to coal burning. Poland anticipates that 64 percent of its entire CO2 emissions allowance will be swallowed up by the electrical energy and heat-generation sector.

Not to vilify coal unduly, it is not the only polluting substance that influences this debate. Over the past several years increased economic prosperity has caused significant growth in a number of consumer conveniences that emit greenhouse gases, including air conditioners and automobiles.

Judith Gliniecki is a partner with Rymar and Partners j.gliniecki@rymar.pl

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