Poland is the most advanced among EU member states in developing a Social Climate Plan, which is set to be presented in a matter of weeks. Under the plan, 50 billion PLN from the Social Climate Fund will support the energy transition in Poland, with a third of this amount allocated to investment in building construction. This funding is intended to protect the poorest citizens from energy poverty during the transitional period of the energy transformation.
– “The work on the Social Climate Fund is at the most advanced stage in Europe – that’s what we’ve heard recently in conversations with the European Commission,” Jan Szyszko, Deputy Minister in the Ministry of Funds and Regional Policy, said during the European Forum of New Ideas in Sopot. “The first meeting of the working group, consisting of government representatives, regional administration and civil organizations, has already taken place. And, what’s equally important, we have undergone cross-ministerial consultancy. I believe that in a few weeks we’ll be able to present the plan more broadly.”
The Social Climate Fund aims to economically equalize the opportunities of individual countries undergoing energy transformation. Poland is expected to be the biggest beneficiary of this fund. The Social Climate Plan being developed by the Ministry of Funds and Regional Policy, is a strategy for allocating 50 billion PLN from 2026 to 2032. According to Minister for Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, this funding will support the transition from the country’s outdated and inefficient energy system to a modern, affordable and profitable system for consumers and the economy. The funds are meant to assist households, small businesses and transportation users who are most at risk of energy poverty.
An important aspect, Szyszko explained, is that about a third of this plan will be direct subsidies, in support of transportation, construction, and electricity bills. “We will build these models to provide maximum support for those who need it most – the least wealthy Poles.”
The costs of energy transformation could prove highest for this group. Yet, the ultimate plan is to yield ease and savings for energy consumers, rather than additional burdens. Hence, there is a need to support the least affluent citizens and small and medium-sized businesses. This is due in part to the planned 2027 introduction of the Emissions Trading System (ETS2) in new sectors such as construction and road transportation. This means that fees will be required for emissions of carbon dioxide from burning fossil fuels in homes. The Ministry has concerns about the effects of this on the groups that are most vulnerable.
Recent data on poverty in Poland reveal an increase in 2023, an alarming development. “We cannot afford to introduce new mechanisms that will deepen the poor financial situation of individuals who are currently not affluent,” stressed the expert.
According to the European Anti-Poverty Network (EAPN) Poland’s “Poverty Watch 2024” report, last year nearly one in every 15 Poles lived in extreme poverty. This primarily affected families with children, the elderly, and disabled persons. For the first time since 2015, levels of extreme poverty recorded a perilous increase, with EAPN Poland signaling that the country is on the brink of a social crisis. The report points to an increased occurrence of energy poverty in Poland between 2019 and 2023, affecting several million Poles, as the result of rising energy costs and a drop in the ability to meet financial obligations. EAPN Poland underlines the necessity of social and energy policy measures to prevent a further escalation of the problem, with investment in energy-efficient buildings prioritised as part of the Social Climate Plan.
“Any new mechanisms like ETS2 have to be introduced in a way that they do not burden and cause even more poverty for the least affluent individuals. We will discuss this in the European Union at the beginning of next year,” Deputy Minister Szyszko announced.
He pointed out that changes to the planned ETS2 model are not excluded and will be a subject of negotiation.
“People who replaced their coal heating with gas over the last few years have, in a manner of speaking, already undergone the energy transition. It would be highly unfair if they were now to be informed by the government or the European Union that what they considered environmentally-friendly two years ago no longer is, for whatever reason. The situation of these individuals will definitely be a part of the discussions in the European Union, which we aim to undertake,” affirmed Jan Szyszko. “Already, Poland and Prime Minister Donald Tusk have proven that we can lead the debate on migration issues, and similarly, we should and can lead the debate on economic issues.”
