Poland’s Tusk urges EU to maintain support for industry under carbon market rules

Summary

Polish Prime Minister Donald Tusk has called for continued support for energy-intensive industries under the EU’s carbon market, as several member states raise concerns over rising costs and competitiveness.

WARSAW/BRUSSELS, March 18, 2026 — Polish Prime Minister Donald Tusk has urged the European Union to ensure that climate policies continue to support industry, as concerns grow among member states about the cost of decarbonisation under the bloc’s carbon market.

In recent discussions with EU counterparts, Poland has advocated maintaining adequate levels of free allowances under the EU Emissions Trading System, which requires companies to pay for carbon emissions but provides some relief to energy-intensive sectors.

Officials from several EU countries have expressed similar concerns, arguing that rising carbon costs, combined with elevated energy prices in recent years, are placing pressure on industries such as steel, cement and chemicals.

The European Commission has said it remains committed to its climate targets while also ensuring a balanced transition for industry. Policymakers have highlighted existing mechanisms, including the gradual phase-out of free allowances and tools designed to stabilise the carbon market, as part of broader efforts to reduce emissions while maintaining competitiveness.

Analysts say carbon prices have shown some volatility in recent sessions, reflecting uncertainty over policy direction, energy markets and economic growth prospects in the region.

Poland, where coal continues to account for a significant share of electricity generation, has been among the more vocal member states in calling for flexibility in how climate policies are implemented. The government has argued that a balanced approach is needed to protect industrial activity while continuing progress toward emissions reduction goals.

The debate comes as the EU prepares for the next phase of its climate framework, including the expansion of carbon pricing to additional sectors later this decade. Industry groups have urged policymakers to ensure a predictable transition path to avoid disruption to investment and production.

Why this matters

• Industrial Competitiveness: Higher carbon costs can impact Europe’s heavy industries and global competitiveness
• Policy Balance: The EU must balance climate targets with economic stability
• Energy Transition: Member states are seeking flexibility as they move toward lower emissions

FAQs

Q1. What are free carbon allowances?

They are permits given to certain industries to reduce the cost impact of carbon pricing under the EU system.

Q2. Why is Poland concerned about the carbon market?

Because higher carbon and energy costs can affect industrial output and competitiveness.

Q3. What is the EU Emissions Trading System (ETS)?

It is the EU’s main tool for reducing greenhouse gas emissions by putting a price on carbon.

Q4. Will the EU change its carbon policies?

The EU continues to review policies to balance climate goals with economic considerations.