14/01/ Warsaw European Council – Energy & Climate 2030 Krzysztof Bolesta Polish Ministry of Environment

| 2 EU Targets for % reduction GHG (ref.1990) 20% RES in overall energy mix 20% Improving energy efficiency

| 3 EU Target(s) for % reduction GHG (ref.1990) 27% RES in overall energy mix binding at EU level 30% Improving energy efficiency binding at EU level 10-15% interconnection indicative

| 4 GHG target - ETS. Reductions by 43%. ETS key instrument. Greater reduction speed 1.74% to 2.2%. CL list kept with review of benchmarks. NER4k mechanism extended. Modernisation reserve created with 2% and EIB involvement

90% based on historical emissions in EU ETS for PL: 700 – 706 mln Value: 66,5 – 67,0 mld PLN 10% GDP per capita criterion for PL: 276 – 278 mln Value: 26,2 - 26,4 mld PLN Allowances for auction = (distribution key between MS 90%-10%) for PL: mln 50% according to historical emissions in EU ETS for PL: 74,5 – 75 mln Value: 7,0 – 7,1 mld PLN 50% according to GDP for PL: 59 – 60 mln Value: 5,6 – 5,7 mld PLN No more than 40% from 90% of historical emissions what means for PL: 280 – 282 mln Value: 26,6 – 26,8 mld PLN Free allowances for electricty generation sector in Poland No more than 40% from 90% of historical emissions what means for PL: 280 – 282 mln Value: 26,6 – 26,8 mld PLN Free allowances for electricty generation sector in Poland 2% fund in EU-28 = 307 – 310 mln (distribution key - 10 MS 50%- 50%) for PL: mln Council Conclusions – what does it mean for Poland in EU ETS ( ) Distribution of allowances for auctioning and 2% fund (subtracted from the PL auctioning CAP) Allowances price estimated at 27 EUR according to Commission’s Impact Assessment to communication on 2030 framework and PLN/euro exchange rate based on guidelines of Ministry of Finance (2 October 2014) = 3,52 PLN/euro

| 6 GHG target – non ETS. Reductions by 30%. Methodology half agreed. Targets will range 0-40%. Transport, agriculture, land use and forests – honorable mentions. Transfer from ETS for richest

| 7. Indicative at EU level. CION will propose areas. MS keep control over measures. Review in 2020 RES & Energy Efficiency. No national targets. Freedom of MS to go above. Governance should help reaching target

| 8 Strong review clause / Council grip. Review after Paris. European Council control over conclusions elements. ETS, non-ETS, energy efficiency, interconnections

| 9 Conclusions End of the beginning; Non-ETS most controversial; No other targets were/will be possible; Good result for Poland Council will exercise very strong grip over climate&energy issues

| 10 What happened in Lima?. Principles of Warsaw and not much more;. Elements of the text on table;. US-China stealing the show;. Likely result – no level playing field;. Managed to solve EU Kyoto2 ratification problem.

| 11 Thank you for your attention