MINEX Forum

Tag: coal subsidies

  • Poland Set to Remain EU’s Last Coal Producer Until 2049 Despite Losses

    Poland Set to Remain EU’s Last Coal Producer Until 2049 Despite Losses

    Poland will continue mining coal until at least 2049, despite the sector’s chronic unprofitability, due to a binding agreement signed between the government and labor unions in 2021, according to Interia Biznes. The agreement legally fixes the coal phase-out date, making any earlier shutdown politically and socially difficult.

    The issue has gained renewed attention after the Czech Republic closed its last coal mines at the end of January. From February 1, Poland effectively becomes the only European Union member state still extracting coal, highlighting its exceptional position within the bloc’s energy transition.

    Coal output in Poland has been declining for decades. Production peaked at around 180 million tons in 1989, before falling to 102 million tons in 2000, 76.5 million tons in 2013, and approximately 44 million tons in 2025. Despite this sharp contraction, the industry remains heavily subsidized.

    Domestic coal production is currently loss-making and sustained through state budget support. Coal sells on the Polish market for about 458 zloty (roughly $114) per ton, while production costs are estimated at 944 zloty (around $236) per ton, underscoring the scale of ongoing financial support required to keep the sector operating.

  • Poland Requests Extension of EU Coal Plant Subsidies Until 2028 Amid Transition to Nuclear Energy

    Poland Requests Extension of EU Coal Plant Subsidies Until 2028 Amid Transition to Nuclear Energy

    Poland, in a bid to facilitate its transition to nuclear energy by the next decade, is seeking an extension of EU rules permitting coal plant subsidies until 2028. Maciej Bando, the deputy climate minister responsible for strategic energy infrastructure, emphasized the necessity of coal power generation until nuclear facilities become operational. With coal currently contributing 60% of electricity output and serving as a backup for intermittent renewable sources, Warsaw aims to have its first large-scale nuclear plant operational by 2033. Bando highlighted the potential collaboration among EU nations seeking support for their energy assets, citing Germany’s pursuit of EU approval for gas plant subsidies. Despite plans for a floating liquefied natural gas terminal in Gdansk, Bando suggested its expansion might not be necessary until after 2030 due to lower demand projections.