ETS waste disposal – time for marketplace policies

pracodawcagodnyzaufania.pl 3 weeks ago

In its judgement of 10 June 2025 (Event No K 10/24), the Constitutional Tribunal found that the EU Emissions Trading mechanics (ETS) which was fundamentally interfering in areas specified strategically for the Polish economy and safety as an energy mix could not be adopted in the average legislative procedure.

This conviction is consistent with the Warsaw Enterprise Institute analyses indicating that the ETS is simply a harmful, bureaucratic tool that inhibits economical improvement and leads to a decline in the competitiveness of Polish and European industry. The WEI so powerfully advocates rejecting this defective strategy and replacing it with free marketplace solutions that let effective decarbonisation through innovation and cutting over-bureaucratic procedures.

The ETS transfers billions of PLN from manufacture to EU budgets, without real impact on global emissions

The ETS, introduced by the European Union as a climate policy tool, was intended to encourage companies to reduce CO2 emissions by trading limited allowances. In practice, he became, as evidenced in his works, among others, by economist Marek Lachowicz, an unstable financial instrument, prone to speculation and generating tremendous costs for entrepreneurs and consumers. The ETS transfers billions of PLN from manufacture to EU budgets, without real impact on global emissions. Polish industry, forced to buy costly rights, loses its competitiveness towards companies from Asia or America that do not bear specified burdens. This leads to carbon leakage: production moves outside the EU, Poland loses jobs and CO2 emissions do not decrease globally due to the fact that production in another countries is frequently little ecological. The ETS does not save the climate – it exports manufacture and imports stagnation.

As the ECI further points out, the Constitutional Court in its judgement of No. K 10/24 He ruled that decisions on the choice of energy sources and the overall structure of energy supply belong to the competence of Poland and not to the European Union. Poland, while ratifying the Accession Treaty, has committed itself to complying with the full EU acquis, but has not given the Union specified broad powers in the field of energy. This is confirmed by Article 194 of the Treaty on the Functioning of the European Union (TFEU), which states that decisions affecting national energy mix require unanimity in the Council of the EU and thus give veto rights to associate States. Nevertheless, the Union, based on the defective explanation of the Treaties presented by the EU Court of Justice (TEU), has unlawfully expanded its powers. According to this interpretation, Poland is deprived of its right of veto erstwhile the EU institutions recognise that the implementation of the ETS is simply a tool for achieving the overarching climate objectives (the implementation of the Green Deal and decarbonisation), and interference in the national energy mix is simply a essential means to accomplish them.

This way of implementing the ETS violates Polish sovereignty

The ECI points out that the Constitutional Court stressed that specified implementation of the ETS violates Polish sovereignty by interfering in a strategical area of energy mix without complying with the procedures laid down in Article 90 of the Polish Constitution. The transfer of specified competences to the EU requires the approval of Parliament by a qualified majority of two-thirds of the vote or referendum. The Union, pushing the ETS in the average procedure, ignored these requirements, undermining Polish national interests. The Constitutional Tribunal one more time stressed that the Constitution is the highest law in Poland (in accordance with Article 8 of the Constitution). This means that no law, including EU law, can conflict with it. The judgement of the Constitutional Tribunal is an chance for Poland to regain control of its energy policy.

Entrepreneurs choose technology themselves, and the state rewards results

The WEI proposes a free marketplace alternate that combines environmental protection with economical growth. Firstly, we propose taxation Decarbonation Cuts (DTCs), i.e. taxation reductions for companies reducing emissions, e.g. by modernising processes or fleets. Entrepreneurs choose technologies themselves, and the state rewards results.

The judgement of the Constitutional Tribunal opens the door to the creation of the “Pact for Freedom” – an alliance of countries in Central and east Europe that will implement free marketplace energy reforms, creating a competitive economical zone. Poland can become the leader of the green revolution, based on freedom, innovation and private property.