The EU Emissions Trading System (EU ETS) is not only a financial challenge for Poland, but also a source of billions in revenue for the state budget. With funds from the National Recovery Plan running out, a more demanding EU budget and a growing public deficit, transparent and rational management of EU ETS revenues is becoming even more crucial. We analyse the scale of the scheme’s revenues and costs and help to moderate the debate on establishing a stable financing mechanism for a just and ambitious transition.

The aim of the project is to support the debate on developing a strategic framework for the effective and transparent management of EU ETS revenues and the forthcoming ETS2. The initiative examines the system’s significance for the state’s fiscal policy, with a view to ensuring that this issue becomes a permanent feature of the discussion on Poland’s economic development. The Reform Institute is analysing the historical and future impact of the EU ETS on the state budget and examining the synergies between these measures and the EU budget for the period 2028–2034. The project focuses on facilitating a broader dialogue between the public sector, experts and journalists on the EU ETS and the financing of the transition, including those outside the energy and climate sectors. Through the publication of reports and the organisation of events, the Reform Institute creates a space for substantive discussion on the long-term mechanism for financing a just and ambitious transition, including the transparent use of EU ETS revenues.

The project provides analyses aimed at raising awareness of the importance of the EU ETS for the country’s economic and fiscal policy. It also proposes systemic changes to the financing of the transition. The main outputs include reports and datasets, which will be presented and discussed during expert events and workshops. These measures promote dialogue on the transparent and targeted use of EU ETS funds, in the spirit of a just transition and considering the state of the national budget. They help to integrate economic policy with energy and climate policy, and to establish permanent mechanisms for financing investments and providing safeguards related to the transition.