Poland threatens EU budget veto over carbon-market revenue plan

The European Commission is advocating a reform that would shift a share of proceeds from EU carbon-allowance auctions into the EU’s central budget, reducing the amount that member states currently receive. Poland has voiced strong opposition, stating it could block the entire EU budget if its concerns are ignored. The Irish presidency has offered a gradual implementation of a new rate for nations benefiting from the Modernisation Fund, which supports energy transition, but Warsaw deems the offer inadequate.

Polish officials argue that the emissions-trading system raises energy prices, representing roughly 16 % of the final electricity charge for households. Adoption of the new financing source requires the unanimous consent of all member states, as well as a national ratification step that includes parliamentary approval and the signature of President Karol Nawrocki, who has criticized the ETS. The standoff highlights the tension between EU-wide climate financing and national fiscal interests.