Russia’s brutal attack on Ukraine has cast a shadow over the dreams shared by hundreds of millions of Europeans of building a secure and prosperous future based on sustainable and equitable development. The recovery of stability and the achievement of decent living conditions for the peoples of Europe now require the abandonment of some important assumptions, in particular with regard to energy policy. Simply put, we are witnessing the formation of a new energy order both in Europe and in the wider world. And in this new order we must be able to balance many different interests. We wanted low-cost raw materials, freedom from dictatorship, clean energy and inclusive economic growth. But after the Russian invasion of Ukraine, we have instead increasingly expensive raw materials, dependence on a criminal regime for them, instability and growing energy poverty. Inflation in general and the sharp rise in the price of energy in particular are the direct results of Russian aggression. Until recently, the EU’s energy policy was solely concerned with climate change. Today, other member states agree with Poland, which has long emphasized the need to diversify energy sources, build natural gas reserves and wean itself off Russian fossil fuels. In addition to climate protection, countries’ energy security is now paramount. This is a message I have conveyed to other EU leaders on behalf of all Poles and Europeans who are concerned about their future. The energy sector must be understood in a broader context and the issue of security must be prioritized. Poland recognizes the importance of combating climate change. However, we must do everything possible to ensure that the virus of neo-imperialism does not grow in our backyard. If left unchecked, it will threaten our entire continent. Vladimir Putin’s energy blackmail and the war in Ukraine are already contributing to a significant increase in electricity prices and a significant increase in inflation. Europe has a very important lesson to learn. It must drastically reduce the cost of CO₂ emission allowances, which are a determining factor in energy prices and have risen significantly in recent years. Five years ago, the cost of emitting a tonne of carbon dioxide was well below €10. It currently ranges between €80-100. Such high costs make it difficult for construction companies to invest in the development of new green technologies such as renewable energy or hydrogen. Instead of stimulating the development of green energy, the current Emissions Trading System (ETS) is driving inflation and threatens to drive millions of citizens into fuel poverty. That is why the Polish government has long called for changes that would prevent artificial increases in energy prices driven by financial speculators. At many European Council summits, I have argued that we must put an end to such speculation. That pressure paid off. Today it seems that our proposals will be implemented. But this is only a first step. Excluding financial institutions from trading in the EU ETS is not enough. The ETS should be stabilized at a much lower level. We need to introduce a mechanism to permanently stabilize its price, thus making it much easier to plan new investments. The next step is to review the plans to extend the ETS to other sectors of the economy. This is already a great move and yet, in the difficult circumstances we are currently in, we must do even more. The Polish proposal is to freeze the price of CO₂ emission allowances at €30 for at least one year, with the possibility of an extension for two. If we allow a sharp increase in the price of services, we would add fuel to the inflationary fire. In the midst of an energy crisis, this could lead to the impoverishment of entire social groups, exacerbating feelings of unrest. The EU must recognize that if it does not take a step in the right direction, it may jeopardize its energy policy altogether. Going green cannot come at the cost of basic security. And if the situation forces us to do so, then we should not hesitate to temporarily return to traditional energy sources. Even if a short-term return to coal means postponing our ambitious climate goals, it may be a necessary condition for maintaining a strong European community capable of standing up to Russia and supporting Ukraine. A philosopher once wrote that a chain is only as strong as its weakest link. Today’s geopolitical situation should prompt us to shore up any weaknesses in our energy system. Only in this way will we successfully overcome today’s difficulties and realize the promise of a better tomorrow. Video: Will the war in Ukraine help or hinder efforts to reach net zero? | FT Rethink
