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Poland’s EU Council presidency: A chance to lead on energy and climate 

December 20, 2024 Work Area: Advanced Nuclear, Carbon Capture, Hydrogen, Superhot Rock Energy

Poland’s presidency of the Council in 2025 offers a critical opportunity to shape the EU’s energy and climate agenda at a pivotal moment. As a highly carbon-intensive economy, Poland faces significant decarbonisation challenges but is uniquely positioned to influence policies that balance energy security, technological innovation, and a just transition while enhancing economic competitiveness. 

Industrial decarbonisation: A central focus 

Poland’s presidency coincides with the rollout of the EU’s Clean Industrial Deal (CID), a cornerstone of the EU industrial decarbonisation efforts. As Central and Eastern Europe’s industrial leader, Poland is well-placed to highlight key challenges and propose solutions that resonate across the bloc. 

  • Carbon Capture and Storage (CCS): CCS will be critical for sectors such as steel, cement, and chemicals to decarbonise without losing competitiveness. However, the uneven distribution of storage capacity and transport infrastructure across Europe poses a significant challenge. Eastern and Southern Europe, for instance, face up to sixfold higher CCS costs compared to Northern Europe due to longer distances from storage. Poland can encourage discussions on EU policies that address these disparities by supporting infrastructure development in less-advantaged regions. 
  • Clean Hydrogen: As Europe’s third-largest hydrogen producer, Poland can drive discussions on the need for realistic demand assessment of clean hydrogen, and of the hydrogen amount the EU can reasonably expected to have available, including domestic production capacity and import requirements. To this end, better understanding and integration of multiple production pathways and the development of stringent end use sector prioritisation, to ensure the limited hydrogen goes to sectors needing it the most, should be crucial next steps. 

Poland could further support best practices in CCS and hydrogen deployment by facilitating knowledge-sharing among Member States. Hosting Council discussions on innovative strategies, inspired by countries like the Netherlands and Denmark, could accelerate industrial decarbonisation across Central and Eastern Europe. 

Embedding social cohesion in the transition 

Poland’s heavy industry accounts for 20% of its workforce, making the social dimensions of decarbonisation especially pressing. The Draghi Report has emphasised the importance of mitigating the socioeconomic impact of transitioning away from high-carbon industries. 

  • Retraining and Green Jobs: Poland can lead EU efforts to provide retraining opportunities and incentives for green job creation, ensuring no community is left behind. This is particularly relevant in coal-dependent regions that face substantial employment challenges. 
  • Equitable State Aid: As the EU revises its state aid rules, Poland can highlight the need for balanced measures that enable equitable decarbonisation across Member States, accounting for varying fiscal capacities. 

Budgetary discussions will also be crucial, as achieving the clean transition requires annual investments of €750–800 billion. Poland’s leadership could steer negotiations towards a strengthened EU budget that supports both decarbonisation and cohesion across the bloc. 

Energy security and clean technologies 

The geopolitical context underscores the urgency of reducing energy dependencies while advancing decarbonisation. Poland’s longstanding call to reduce reliance on Russian fossil fuels aligns with the EU’s plans to phase out these imports. 

  • Diverse Energy Solutions: Poland’s strategy to diversify its energy mix offers a blueprint for balancing energy security with climate goals. While the EU has historically favoured a narrow set of clean technologies, Poland’s approach encompasses renewable energy sources, CCS, clean hydrogen, and nuclear energy, including small modular reactors (SMR). This technology-inclusive framework acknowledges the varied energy landscapes across Member States and provides flexible solutions tailored to local needs and resource endowments. 
  • Innovative Energy Sources: Poland’s investment in emerging technologies, such as geothermal energy and SMRs, could position it as a leader in innovative clean energy. Recent geothermal projects in Poland, including plans for deep drilling in the Podhale region, demonstrate the potential of this resource for district heating and beyond. 

Similarly, Poland’s commitment to advancing SMRs could address baseload power needs while reducing reliance on fossil fuels. The EU’s growing interest in SMRs, highlighted by the creation of the SMR Industrial Alliance, provides an opportunity for Poland to lead discussions on integrating these reactors into the bloc’s energy strategy. 

A just and inclusive path forward 

Poland’s presidency in 2025 represents a unique opportunity to drive EU energy and climate policies that balance regional diversity, social cohesion, and technological innovation. By leveraging its expertise and industrial leadership, Poland can help align EU priorities with the needs of Central and Eastern Europe while advancing collective climate and economic goals. 

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