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Faster Transition to Clean Energy Would Bring Great Benefits to Poland

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The FINANCIAL — Scaling up renewable energy sources in Poland would benefit the economy, improve people’s health, and reduce serious environmental problems – including the worst air pollution among cities in Europe – says a new World Bank report, “Poland Energy Transition: The Path to Sustainability in the Electricity and Heating Sector.”

The report says that an ambitious target for Poland would be for the share of renewable energy in power generation to reach almost 50 percent by 2030 (versus 14 percent now) – with the share of coal dropping below 40 percent (versus 80 percent now). This transition would drastically lower air pollutants and CO2 emissions while costing the economy just seven percent more than the transition now planned by the Polish government. Furthermore, the local and global environmental benefits would fully compensate for these additional costs.

The most ambitious scenario set forth in the report could also lead to a 25 percent reduction (20,000 jobs) in direct coal mine jobs by 2030, however, it will be more than offset by potential 100,000 jobs a year created by improving the energy efficiency of homes in Poland. Active labor market policies can help mitigate impacts on jobs, which are expected to be negligible at the national level and modest at the local level, given a dynamic economy and tight labor market in the coal-producing Silesian region.

“Poland has already achieved success in decoupling economic growth from emissions. It has simultaneously increased its gross domestic product seven times and decreased its emissions in the electricity and heating sector by 30 percent since 1989”, says Carlos Piñerúa, World Bank Country Manager for Poland and the Baltic States.

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“However, Poland’s heavy reliance on coal creates serious environmental problems and imposes heavy health costs on the population, who breathe polluted air. Our analysis shows that investing in renewables now would be good for people’s health as well as economically justified.”

The report acknowledges coal has contributed enormously to Poland’s economic and social development. Yet, European and global environmental trends mean that a transition to cleaner energy is inevitable and technological progress has made switching to cleaner energy affordable and cost-effective. Globally, the energy sector is moving toward sustainability, driven by economics, the need to reduce air pollution, and the national targets set as part of the Paris Agreement.

The World Bank

 

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