Billions of euros in savings for industry. The EU increases the pool of ECJ powers

The compromise reached assumes that 116 million additional free carbon dioxide emission allowances will go directly to the industry until 2030.

One such authorization gives the right to release a ton of CO2 into the atmosphere. At current prices on the emissions market, when an average tonne of carbon dioxide costs EUR 80-90, 116 million allowances mean savings for the European industry of over EUR 10 billion.

This pool includes 28 million permits that were not used by companies due to failure to meet EU requirements (e.g. lack of energy audits), and which EU lawmakers added to the reform during work on it.

What else does the compromise involve?

Additionally, the compromise assumes reserving 5 million permits for industries most at risk of escaping from outside the EU. In the announcement published by the Council of the European Union, we read that the rights unused under this mechanism will go to the Modernization Fund and to stimulating innovation in sectors covered by the ETS system, through the Innovation Fund.

The European Parliament proposed redirecting the unused 11 million allowances directly to the Modernization Fund. It finances investments in the energy transformation of the poorer parts of the EU countries.

It is estimated that in the years 2021-2030, approximately EUR 14 billion (approximately PLN 60 billion) will go to Poland. The EP's proposal was welcomed by Polish MEPs from both KO and PiS, because it means more money for projects in Poland.

However, according to the final regulations, only 5 million permits may be allocated to the Modernization Fund, provided that they are not used by at-risk industries by 2030.