New C02 emission limits will drive up energy prices

According to the Environment Ministry, the new rules may lead to retail price increases of 5-10%. But industry representatives said the power sector also needs to raise prices to fund the necessary upgrades and green energy projects. The situation is made more complicated by the chaos over liberalization of energy prices as in 2008. "The government needs to adopt some protective measures to ease the impact for the sector," said Jerzy Chachuła, CEO of the Rybnik power generation plant. Other sectors, notably steel and cement makers, are happier with the proposed emission levels. Nowicki believed the energy sector should bear the main brunt of the scheme as steel and cement makers have already invested huge sums in green technologies.