Polish Government Head stuck in a ‘Coal Mine’

The Polish Government approach to Energy seems a tipsy turvy world of contradiction, unfortunately with most of the contradiction being quite negative. I appreciate the current Government is grappling with many issues and problems created by the woefully bad management of the last government but energy seems to be one area the current government are flapping around in a quite messy way.

First I find the fact that the the Japanese and Polish governments have reached a basic agreement under which Japan will purchase a portion of Poland’s greenhouse gas emission quotas staggering – Poland can ill afford to sell its quotas. Poland is one of the world’s worst greenhouse producing countries – this step seems to me to be ill timed and with little commercial sense – any profit produced in the short term must be invested in green initiatives but the profit is small against the capital needed and in the long term will end up costing the Polish tax payer more – a contradictory and somewhat confusing commercial proposition.

The Japanese Environment Minister Ichiro Kamoshita and his Polish counterpart, Maciej Nowicki, concluded the agreement at the three-day meeting of the Group of 20 nations at which ministers of the world’s top greenhouse gas emitters discussed issues including climate change, clean energy and sustainable development.

The two governments are scheduled to exchange an official document on emissions trading soon. The volume of transactions will be discussed later, but Nowicki said the Polish government may sell several million tons worth of carbon credits!!! It will be very interesting to see what the real numbers are and the commercial sense behind this.

Second – as I have written before the investment into Energy is lagging significantly and in January/February Poland came close to a black-out situation. To maintain economic growth Poland has to ensure the continuity of its energy supplies – the Governments way of doing this is to import more coal – yes that’s right I said ‘import’ more coal.

Whilst Coal production keeps falling, importers are thriving and Polish mines are losing money! Poland is the EU biggest coal producer, but they still imported 5.8m tons of coal last year.Since 2004, imports have grown by 3.4m tons whilst production has dropped by 11.7m tons .

 

“For many years, we used to finance from the state budget the process of closing mines. We failed to invest in new fields. That’s why imports grow, and production falls”, Leon Kurczabinski from Katowicki Holding Weglowy coal group said to pb.pl.

Eugeniusz Postolski, the Polish deputy minister of Economy, believes that it was because of many wrong decisions of the management of coal companies that production had fallen by nearly 7m tons in 2007. I’m sorry Mr Postolski but it is because of the delays in privatization and lack of investment that is causing the bad management.

I hope that the Government acts sooner rather than later so that the costs of energy imports do not cause significant downward pressure on the economy – the sooner a nuclear energy policy is introduced the better.

Read more of my trivia at datblog

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2 thoughts on “Polish Government Head stuck in a ‘Coal Mine’

  1. scatts says:

    I have a feeling that Japan is one hell of a lot smarter as regards the whole issue of sustainability than is Poland. It therefore does not surprise me that Poland is considering making stupid decisions in this area.

    I can believe the coal imports. I often drive past the mountains of coal on Modlinska needed to keep the electro-heating plant there up and running.

    I am more and more often these days seriously concerned about this country’s ability to govern itself properly, whoever is in power.

  2. guest says:

    The Poles are well prepared, do not worry :D

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