Poland’s government has approved a new bill to accelerate the country’s transition away from coal, aiming to make mine closures easier, provide financial support to affected workers, and promote the redevelopment of mining regions.
“This is a specific response to the challenges of the energy transition and provides real support for thousands of miners,” said Energy Minister Miłosz Motyka. “We want the process of change to be carried out responsibly, with respect for local communities.”
Under the proposed legislation, which still requires approval from parliament and President Karol Nawrocki, mining companies would be allowed to decommission mines independently with state financial assistance. They could also transfer decommissioned assets to local authorities or state entities to be repurposed for investment, revitalization, or infrastructure projects.
The bill introduces a severance package of 170,000 zloty (€40,000) for miners losing their jobs, along with measures to ensure that state subsidies for reducing production are not misused to cover operational expenses.
Minister Motyka described the initiative as paving “the way for a just transition in mining regions,” fostering investment, job creation, and economic renewal. The government maintains a parliamentary majority, but the bill could face a presidential veto — President Nawrocki, who previously called coal Poland’s “black gold,” has pledged to preserve domestic coal production.
Poland remains Europe’s most coal-dependent country, with coal accounting for 57% of its electricity generation in 2024. The mining sector, however, is under growing economic strain: domestic coal extraction is among the most expensive in the world, and its high emissions increase costs under the EU Emissions Trading System (ETS).
Recent data from Eurostat show that Polish households pay the third-highest electricity prices in the EU when adjusted for purchasing power. Meanwhile, state subsidies to the coal sector are expected to total 9 billion zloty this year and 5.5 billion zloty in 2026, highlighting the industry’s dependence on government support.
According to the energy ministry’s impact assessment, the total cost of closing hard coal mines over the next decade will reach 11.3 billion zloty (€2.6 billion).
Financial pressures are already mounting for major producers. Jastrzębska Spółka Węglowa (JSW), the EU’s largest coking coal producer, reported a 2 billion zloty loss in the first half of 2025 following a record 7.3 billion zloty loss in 2024, raising questions about its long-term viability and potential need for further state aid.
Some state-owned utilities are also accelerating the shift away from coal. Last week, a subsidiary of PGE, Poland’s largest electricity provider, reached an agreement with trade unions to close one of its coal-fired power plants, offering a €59 million compensation package to affected workers.
