Republic of Poland: Selected Issues

This Selected Issues paper focuses on balancing decarbonization with energy security in Poland. The paper describes the evolution and challenges related to the energy security situation and greenhouse gas (GHG) emissions in Poland over the last decades in the context of EU climate agenda. It also analyzes possible decarbonization paths and implications for energy import dependency. Despite increasing consumption of imported fossil fuels, Poland has managed to decouple economic growth from carbon emissions. The energy dependency of Poland is well below the EU average, due to a high reliance on domestic coal, which accounts for 72 percent of coal-fired power generation. The Poland-specific policy scenarios assume significant changes in the electricity mix and varying degrees of decarbonization ambition. Economic outcomes, in particular for employment, depend on how carbon tax receipts are spent. The objectives of energy security and decarbonization can be aligned. Fossil fuel imports are the main source of risk for energy security, while also being responsible for almost half of energy-related CO2 emissions. Policies to shift away from these fuels will benefit both climate mitigation and energy security. While decarbonizing the power sector will not directly contribute to energy security, it can be achieved without endangering it.