WARSAW, July 1 (Reuters) - Poland has cut carbon dioxide (CO2) permits for the power generation sector by about 11 percent, Environment Minister Maciej Nowicki said on Tuesday, in a long-awaited decision on the splitting of its CO2 quota.
The government estimates a cut in quotas will lead to a 4 percent rise in electricity prices.
Poland’s government has been in deadlock for months over splitting the country’s CO2 quota as environmental concerns clash with the interests of state-owned power groups as well as fears of rising electricity prices and an economic slowdown.
“The government approved the CO2 quota for 2008-2012... For the energy sector, the limits are down by 11 percent (compared with real emissions in 2006-07) in order to force the sector to modernise and invest,” Nowicki told a news conference.
The minister did not specify the exact quota for the energy sector, but in June he said the sector emitted 120 million tonnes of CO2 in 2006 and 2007.
The energy sector, based almost entirely on outdated coal-fired plan