Polish presidency in the EU: a chance for a sustainable energy transition
The evolving landscape of decarbonization and energy security, with its profound regional and global implications, business operations in Poland. ORLEN is eager to engage in discussions about energy transition and the EU regulations required to facilitate it. The company has prepared a position paper highlighting the key challenges: preserving the competitiveness of the EU market, championing technological neutrality, ensuring access to decarbonization financing, and shifting away from overly prescriptive regulatory approaches.
Aligned with the Paris Agreement, ORLEN is proactively reducing its emissions footprint while navigating an EU regulatory framework that heavily influences the energy sector's development trajectory and has a substantial impact on the Group's operations. The upcoming five-year EU regulatory cycle presents an opportunity to address issues vital to the industry.
To this end, ORLEN has issued a manifesto focusing on the key issues. First and foremost is the competitiveness of the EU market. A major challenge lies in implementing the EU’s Clean Industrial Deal, which could effectively shield European economies from an influx of high-carbon imports from outside the EU. Equally important is promoting a broad EU endorsement of diverse low- and zero-emission technologies, enabling cost-effective and efficient transitions anchored in technological neutrality.
“Financing decarbonization is a critical aspect. Regulatory frameworks must incentivize investment in emission-reduction technologies, which demand significant capital, particularly during early development. We have observed Region-specific funds have proven more effective in addressing local needs, and we must also analyse the social impacts of transition policies. For Central and Eastern Europe, in particular, decarbonization must uphold the principles of a just transition,” said Witold Literacki, Vice President for Corporate Affairs at ORLEN.
To ensure effective and timely energy transition, it is crucial to consider the need for business friendly regulations. Current EU mandates often impose penalties for non-compliance with established requirements, and their implementation can involve significant costs. ORLEN believes that each sector undergoing transformation requires more investment incentives, reduced excessive reporting obligations, and adaptation of regulations to the socio-economic realities of individual countries. Crucially, ongoing dialogue between EU institutions and industry stakeholders is essential to fostering practical and impactful policies.
ORLEN has also put forward specific regulatory proposals. For petrochemicals, ORLEN urges a competitiveness policy to safeguard jobs in EU across industries and mitigate the impacts of emissions costs and energy prices. In natural gas, ORLEN champions its role as a transitional fuel pivotal to reducing emissions across the EU economy. For power generation, the manifesto stresses the importance of maintaining natural gas and nuclear energy as recognized transition fuels within the EU taxonomy.
The company has prepared a series of recommendations in four areas: petrochemicals, transport, natural gas and upstream, and electricity and heat production. These recommendations are all included in the manifesto. The manifesto will debut at the Open Eyes Economy Summit in Kraków on November 19, where ORLEN will host a high-profile panel, ‘The Green Deal: Competitiveness and Economic Security.’ The company plans to further amplify its recommendations through upcoming conferences, media campaigns, and bilateral discussions.
In 2020, ORLEN became the first Central European energy company to pledge carbon neutrality by 2050, aligning with the Paris Agreement. Decarbonization is a cornerstone of ORLEN Group’s business strategy, driving its decision to enhance greenhouse gas reduction targets for 2030. ORLEN aims to strengthen its leadership position in energy transformation in Central Europe. By the decade’s end, ORLEN will channel over 80% of its total investments into green and transitional projects, cementing its leadership in Central Europe’s energy transition and advancing innovative, climate-conscious business models.
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