The EU is working increasingly hard to reduce greenhouse gas emissions and dependence on fossil fuel imports. The plans are ambitious and we must take into account that when they come into force, they will hit Poles’ pockets. The new tariff may hurt users of coal, gas, eco-pea coal and heating oil. When will the regulations come into force and what can we do to avoid fees and not get caught in the trap of the so-called temporary solutions?
- From 2027, ETS 2 will be in force, which will cover and solve the problem of CO2 emissions from fuel combustion in buildings, road transport and additional sectors. ETS 2 means taxing gas, coal and heating oil – i.e. fossil fuels used for heating households, which in turn may directly affect the pockets of Poles who will then use such heat sources
- From 2027, we will pay even more than PLN 1,200/year for home heating if we use a boiler for solid fuels such as coal, including eco-pea coal, gas or heating oil. The “tax” on heating is related to the introduction of the ETS 2 system and carbon dioxide emission fees in EU countries.
- Homeowners who heat with fossil fuels will not be asked to pay for their greenhouse gas and CO2 emissions.2. They will not be charged a separate tax fee.
- Fee for greenhouse gas and CO emissions2 will be included when purchasing coal, eco-pea coal, heating oil or gas from January 1, 2027.
- Therefore, from the beginning of 2027, experts predict drastic increases in the prices of coal, eco-pea coal, natural gas and heating oil, which will not be justified by market conditions.
The European Union has had an emission allowance trading system (EU ETS) since 2005 – as part of the “Fit for 55” package of directives and legal regulations.
It limits the amount of greenhouse gases that can be transmitted by energy-intensive industries, energy producers and airlines. Its additional goal is to reduce the economy’s dependence on the import of fossil fuels and replace them with renewable energy sources.
ETS 2 and CO2 tax are approaching2 from burning fossil fuels to heat buildings
Unfortunately, these actions have so far not been sufficient to put the EU on the path to the goal of climate neutrality, which we should achieve by 2050. That is why the current system is to be changed soon.
From 2027, ETS 2 will be in force, which will cover and solve the problem of CO emissions2 from fuel combustion in buildings, road transport and additional sectors – says the Euros Energy expert. – ETS 2 means taxation of gas, coal and heating oil – i.e. fossil fuels used for heating households, which in turn may directly affect the pockets of Poles who will then use such heat sources. Currently, the group of such people is still large.
According to CEEB data, there are over 3.6 million solid fuel boilers and over 2.3 million gas boilers in Poland. The funds obtained in this way are to be used for co-financing programs for replacing current heat sources with those that obtain energy from renewable sources.
The new tax on heating with fossil fuels is also an opportunity to increase the number of ecological heat sources in the country, which will directly translate into, among others, improving energy security.
Poles will have to make a difficult decision regarding the choice of heat source. However, by implementing appropriate education and government programs and laws for renewable energy, we can avoid a disaster. It is important to start making good, future-oriented decisions and not to focus on temporary solutions, says Tomasz Walczak, CTO of Euros Energy.
A perfect example of the trap of temporary solutions is gas. In the near future, there may be periods when using gas may be cheaper, e.g. from a heat pump.
You should know that this will be very short-lived and will change drastically after the introduction of ETS 2. Then it will turn out to be a more expensive heat source than the already mentioned pumps, and the difference in bills will increase from year to year – he adds.
You should seriously consider changing the heating system in your home
Currently, Poles have access to financial support for thermal modernization thanks to the Clean Air program. In addition, they can take advantage of other initiatives, such as Moje Ciepło, which promote the use of renewable energy sources.
Under these programs, beneficiaries have the opportunity to install solutions such as heat pumps, central heating systems and domestic hot water (CWU), photovoltaics, energy and heat storage.
There are also initiatives created by entrepreneurs, including: FREE modernization that transforms residential blocks into completely energy-independent and self-sufficient facilities with an individual heat source based on renewable energy sources.
The ETS 2 system, which will become operational in 2027, has been designed to ensure that its launch is orderly, smooth and effective. However, all those who are delaying the replacement of their stovepipes should keep this in mind now. It is worth recalling that they can currently take advantage of programs subsidizing the transition to renewable heat sources, including: heat pumps or photovoltaics – says Tomasz Walczak, CTO of Euros Energy. The carbon price established under ETS 2 should constitute a market incentive for investments in building renovations and low-emission mobility – explains Tomasz Walczak, CTO of Euros Energy.
Since 75% of greenhouse gas emissions in the EU come from energy use and production, decarbonization of the energy sector plays a key role in achieving climate neutrality, according to information provided by the European Commission.
How much tax will we pay for heating our house with coal, gas, eco-pea coal and fuel oil from 2027?
From 2027, we will pay even more than PLN 1,200/year for home heating if we use a boiler for solid fuels such as coal, including eco-pea coal, gas or heating oil. The “tax” on heating is related to the introduction of the ETS 2 system and carbon dioxide emission fees in EU countries.
According to information provided by politicians, one tonne of greenhouse gas emissions will cost a household owner approximately EUR 45. On average, a household emits approximately 6 tons of CO2 and greenhouse gases per year, which amounts to approximately EUR 270. In total, he will pay approximately PLN 1,200 per year. However, if the household emits higher emissions, the homeowner will pay even more for the increased emissions.
This means that from January 2027 we must take into account an increase in the prices of coal, oil and gas used to heat homes.
The new ETS 2 system involves the expansion of payers for greenhouse gas and CO emissions2 o additional groups that will bear the costs of carbon dioxide emissions into the atmosphere.
This system will cover not only industry and energy, but also construction, including residential buildings, and road transport. As a consequence, these are the owners of houses and residential buildings that are heated with heating and district heating installations that cause emissions.
How will house owners pay for heating their homes with gas, coal, heating oil and eco-pea coal?
Homeowners who heat with fossil fuels will not be asked to pay for their greenhouse gas and CO2 emissions.2. They will not be charged a separate tax fee.
Fee for greenhouse gas and CO emissions2 will be included when purchasing coal, eco-pea coal, heating oil or gas from January 1, 2027.
Therefore, from the beginning of 2027, experts predict drastic increases in the prices of coal, eco-pea coal, natural gas and heating oil, which will not be justified by market conditions.
In other words, the cost of emission will be included, e.g. in the price of 1 tonne or liter of them3 fossil fuel. The more we buy coal, eco-pea coal or use gas and fuel oil, the higher our cost of CO emissions will be.2.
