THE DRIVING FORCES OF CHANGE IN ENERGY-RELATED CO2 EMISSIONS IN THE POLISH IRON AND STEEL INDUSTRY IN 1990-2017

Zbigniew Gołaś

doi:10.32479/ijeep.9444

Abstract

The main purpose of this paper was to identify the driving forces of change in energy-related CO2 emissions in the Polish iron and steel industry in 1990–2017. The analysis relied on the LMDI method used for both the entire study period and the seven 3-year sub-periods. Changes in energy-related CO2 emissions were considered in the context of four factors: the effect of the emission factor; the effect of the energy mix; the effect of energy consumption; and the effect of the production volume of steel. As shown by these analyses, CO2 emissions in the Polish iron and steel industry dropped by as much as over 60% during the study period. That process was primarily driven by a reduction in steel production volumes and in energy intensity of production. In 1990–2017, these factors contributed 48.0% and 50.7%, respectively, to total change in CO2 emissions. Other factors, i.e. emission intensity and energy mix, had a marginal impact. However, the opportunities for further reduction in CO2 emissions seem very limited in the Polish iron and steel industry. That sector is unable to incur the costs of decarbonization investments and requires financial support. Moreover, its continued existence depends on changes to the ETS which will promote low-emission production and will stop the shrinking of the steel market. Thirdly, the steel market needs to be protected against unfair imports, and requires the establishment of the same competition conditions for producers who are not charged with CO2 emission costs.Keywords: CO2 emission, energy use, LMDI decomposition, iron and steel industry, PolandJEL Classifications: Q42, Q43, Q53DOI: https://doi.org/10.32479/ijeep.9444

Highlights

As a signatory of the United Nations Framework Convention on Climate Change of 1994 and the Kyoto Protocol of 2002, Poland actively contributes to measures taken by the international community to reduce climate change
Changes in Energy Consumption and CO2 Emissions Table 1 and Figure 1 show the statistics of energy consumption and mix in the Polish iron and steel industry in 1990-2017
The iron and steel sector considerably contributes to global anthropogenic CO2 emissions as a consequence of great demand for energy and the related large carbon emissions

Summary

Introduction

As a signatory of the United Nations Framework Convention on Climate Change of 1994 and the Kyoto Protocol of 2002, Poland actively contributes to measures taken by the international community to reduce climate change. That goal was expressed in a commitment to attain a yearly average emission level equal to 80% of total emissions of all countries in the base year (KOBIZE, 2019). Another event that encouraged stronger action against climate change was the Brussels summit held by European Union countries in October 2014 to agree on the objectives for the EU climate policy by 2030. The objective is a 32% reduction in energy demand in relation to forecasts, and attaining a share of no less than 32.5% of renewable energies in total energy consumption (European Commission, 2014) By seeking these goals, the economy and the energy system of the European Union will become more competitive while ensuring increased

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