HomeBusinessCoal-rich Poland laments reliance on Russia as house provides run quick

Coal-rich Poland laments reliance on Russia as house provides run quick


Like tens of millions of Poles, Mateusz Szumlas would usually have coal delivered to his cellar by his native provider in good time for him and his accomplice to warmth their house for winter.

However this 12 months Szumlas has needed to turn into one thing of a cross-border gas dealer, travelling to purchase coal within the Czech Republic and lugging it again to his Polish hometown of Świeradów-Zdrój. He solely expects to obtain a portion of the 4 to 5 tonnes he normally will get dropped at his door, even after Poland’s parliament accepted emergency subsidies for the one-third of households that use coal to maintain heat.

“Individuals at the moment are relying on the subsidies from the federal government, however it doesn’t actually assist remedy the issue when coal is unavailable,” Szumlas mentioned.

His hunt for gas is a consequence of Russia’s invasion of Ukraine that has left Poland, one of many final bastions of coal manufacturing within the EU, coping with an abrupt and unprecedented coal scarcity.

Poland’s authorities, by no means sluggish to be hawkish in direction of Moscow, eagerly responded to the Kremlin’s invasion of Ukraine by banning imports of Russian coal.

However in doing so it additionally lower one of many nation’s fundamental sources of home coal provide. Whereas Poland is an enormous coal producer, most is of low high quality and used primarily in energy stations. Russia provided about two-fifths of the coal burnt by Polish households.

The dearth has left Poland struggling to seek out substitutes from faraway producers reminiscent of Colombia and South Africa. The worth of coal in Poland has tripled from a median value of slightly below 1,000 zlotys per tonne final 12 months to greater than 3,000 zlotys/t.

Warsaw’s ban on Russian coal began in April and prompted panic shopping for by Polish households. In the meantime, an EU-wide ban solely got here into power this month, giving Germany and different EU nations extra time to make a smoother transition and fill up on Russian coal.

For Poland’s coal miners, the disaster reveals a long-term failure to advertise and put money into the sector. “After all the speedy reason behind the issues with coal is the battle in Ukraine, however years of depressing power coverage led us to turn into depending on Russian coal,” mentioned Jarosław Grzesik, president of the mining department of the Solidarność commerce union.

The coal disaster comes as Poland’s economic system contracted 2.3 per cent within the second quarter from the earlier quarter, elevating the probability of a recession. Dealing with an election subsequent 12 months whose consequence may hinge on how Poland manages to climate the financial impression of the Ukrainian battle, the rightwing coalition authorities has not too long ago introduced a number of emergency steps to alleviate house-heating considerations amongst voters.

Smoke rises from a city home chimney final winter in Gliwice, Poland © Beata Zawrzel/NurPhoto/Getty Photographs

In July, Warsaw ordered state-owned firms to purchase a further 4.5 million tonnes of coal to produce households, which might be slightly below half of the coal burnt annually in Polish properties. The federal government additionally suspended high quality requirements for the burning of coal for house heating. Following an unsuccessful try to cap retail costs for coal, the federal government this month pushed by way of parliament a subsidy scheme that can permit every family to use for a one-time handout of three,000 zlotys to assist pay for coal.

The measures have been decried by environmentalists as a harmful U-turn on efforts to combat international warming, coming simply after Poland had reluctantly agreed to satisfy EU local weather change objectives and wean itself off coal. Final 12 months, the federal government signed an settlement with the mining trade and commerce unions to close all its coal mines by 2049.

The coal subsidy scheme has additionally come below criticism as a result of it isn’t means examined. About 30 per cent of coal subsidies are more likely to go to the richest 40 per cent of households, a lot of which ought to as an alternative have invested in higher insulation and different heating, in response to the World Financial institution.

“A great way to mitigate the results of the power disaster could be to help solely these individuals who really want such help,” mentioned Reena Badiani-Magnusson, a senior economist on the World Financial institution. General, she added, “the incentives to return to coal, even when shortlived, could destroy the exhausting work that Poland has completed on the battlefield in opposition to smog”.

The air high quality in Poland is among the many worst in Europe, in response to research from the European Atmosphere Company. As well as, residents who burn coal or wooden inside their properties have an nearly one-third greater chance of creating a respiratory illness, in response to analysis from a Warsaw-based basis, the Institute for Structural Analysis.

Nonetheless, the federal government insists that it’s going to prioritise coal earlier than chilly climate returns. “I would like there to be extra coal than is required, even for a harsh winter,” prime minister Mateusz Morawiecki advised parliament final month.

In late July, the primary cargo of South African coal docked on the Polish port of Świnoujście. However the nation’s ports are additionally getting clogged up with navy tools sure for Ukraine and coal distributors are complaining about logistical issues and prices that they didn’t have when coal got here from close by Russia.

Given all these challenges, some power consultants forged doubt on Morawiecki’s declare that Poles shouldn’t concern this winter. “The scenario of Polish households in the course of the winter might be very a lot climate dependent, which is worrying,” mentioned Ilona Jędrasik of the Polish workplace of ClientEarth, an environmental non-governmental organisation.

There are even predictions that spiralling coal costs will quickly immediate households to burn as an alternative cheaper wooden briquettes — and even waste — to maintain heat.

“The air high quality might be a lot worse this 12 months because of the quantity of rubbish being burnt as a approach of saving cash,” warned Łukasz Horbacz, president of the Chamber of Commerce of Polish Coal Sellers.


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