Published: 30/10/2025

Polish energy-intensive industries (EIIs) are especially vulnerable to the energy transition due to the country's reliance on carbon-intensive energy sources, notably hard coal and lignite. While this transformation is necessary, it poses distinct challenges for Poland. The main obstacle to decarbonising EIIs in Poland is the high cost of electricity, driven by coal-dependent ETS-exposed power generation and by reliance on imported fossil fuels – costs that energy-intensive firms are unable or unwilling to absorb.

Key findings

• Polish energy-intensive industries (EIIs) are especially vulnerable to the energy transition due to the country’s reliance on carbon-intensive energy sources, notably hard coal and lignite. While this transformation is necessary, it poses distinct challenges for Poland. The main obstacle to decarbonising EIIs in Poland is the high cost of electricity, driven by coal-dependent ETS-exposed power generation and by reliance on imported fossil fuels – costs that energy-intensive firms are unable or unwilling to absorb.
• In the short term, the structure of fees and taxes affecting energy prices for industry should be reassessed, considering the possibility of temporary reductions. A framework should also be created to develop a market for long-term power purchase agreements (PPAs) for industry. Although the shift towards nuclear and renewables entails substantial upfront costs, it will ultimately provide cleaner, more secure, and progressively more affordable energy for EIIs.
• Energy-intensive industries face decarbonisation costs that often exceed their borrowing capacity with commercial banks. To support the decarbonisation of Polish EIIs, pipeline infrastructure is needed for the transport of hydrogen and carbon dioxide, with additional onshore storage required for the latter. Infrastructure development should precede the expansion of demand and supply for decarbonised products, as its absence constrains the deployment of clean technologies in EIIs. However, the geographical dispersion of industrial plants in Poland poses a major challenge to developing pipeline networks for CO₂ and RFNBO hydrogen.
• The phase-out of free emission allowances under the EU ETS, combined with the introduction of the CBAM, poses significant challenges for energy-intensive sectors. While the CBAM is intended to create a level playing field between EU and non-EU manufacturers, PEI’s interviewees expressed concerns regarding its effectiveness and integrity. For Poland, situated on the EU’s customs border, this issue is particularly relevant – both in terms of the accuracy of CO₂ emission declarations and the risk of resource shuffling.
• A legal framework for green public procurement is crucial to create demand for low-carbon goods produced by Polish energy-intensive industries. Due to comparable technical parameters, for commodities such as steel, cement, and fertilisers, price is currently the only selection criterion. Introducing non-price criteria, such as a product’s carbon footprint, would mitigate the risk associated with decarbonisation investments in these industries.