Poland could veto the European Union’s next long-term budget if the European Commission proceeds with plans to divert a share of national proceeds from carbon-emission allowances into the EU’s common budget, according to Polish officials.
“If Brussels does not yet understand our opposition, they may be surprised if we block the budget,” one Polish government representative told RMF FM.
Under the Commission’s proposal for the EU budget for the 2028-2034 period, Poland may lose out.
Of the EU’s new “own resources” (the dedicated revenue streams that finance the EU budget), 30 percent of the proceeds from auctioning allowances under the existing Emissions Trading System (ETS) would go to Brussels rather than remaining with member states. The Commission estimates this would generate an average of €9.6 billion a year for the EU over the seven-year period. For Poland, which currently receives roughly €3.8 billion annually from the auctions, the shift would mean transferring about €1.14 billion a year to the EU budget.
The Irish presidency has suggested phasing in the new rate for countries that benefit from the Modernisation Fund, which aids the energy transition in lower-income member states. Polish officials have rejected the concession as inadequate.
Poland’s stance reflects the country’s still-heavy reliance on coal and the cost of the energy transition. Officials argue that the Emissions Trading System already drives up power prices and accounts for roughly 16 percent of a typical household electricity bill.
Any new source of EU revenue requires unanimous approval by member states and subsequent national ratification. In Poland, that process would need parliamentary consent and the signature of President Karol Nawrocki, who has criticized the ETS and called for its abolition.
The Commission’s proposal remains under discussion among member states. No final decision has been reached.
