Poland Overhauls Fuel Market to Meet EU Climate Goals

Poland Overhauls Fuel Market to Meet EU Climate Goals

Poland is currently navigating a profound and comprehensive transformation of its alternative fuels market, a strategic pivot driven by the inescapable necessity of aligning with the European Union’s demanding climate and energy mandates. This national overhaul represents more than a simple policy adjustment; it is a fundamental redesign of the country’s energy landscape for transport, poised to reshape everything from daily passenger commutes to the operations of maritime shipping and aviation. At the heart of this ambitious national strategy is the “National Policy Framework,” a pivotal document adopted by the Polish Council of Ministers in late 2025. This framework functions as a detailed and strategic roadmap, meticulously charting the course for implementing stringent EU regulations and orchestrating the development of critical infrastructure for electricity, biomethane, and hydrogen. The plan sets the stage for a period of intense legislative action and strategic investment, aiming to build a resilient and sustainable transport sector that is prepared for the challenges and opportunities of the coming decades.

The European Union’s Ambitious Climate Directives

The driving force behind Poland’s strategic shift is a series of legally binding mandates established at the European Union level, all designed to steer the continent toward climate neutrality. The EU’s overarching climate objectives are formidable, including a commitment to reduce greenhouse gas emissions by a minimum of 55 percent by 2030 and to ensure that renewable energy sources account for at least 42.5 percent of the Union’s total energy consumption, as stipulated by the RED III Directive. These high-level goals cascade down into specific and demanding requirements for individual sectors, with transportation being a primary focus due to its significant emissions profile. For the transport sector, Member States like Poland are presented with a crucial choice for 2030: either ensure that renewable sources constitute at least 29 percent of the energy consumed in transport or achieve a 14.5 percent reduction in the greenhouse gas intensity of transport fuels. This framework also includes sub-targets to foster the adoption of next-generation energy solutions, requiring that advanced biofuels make up 5.5 percent of the energy mix and that Renewable Fuels of Non-Biological Origin (RFNBOs), such as green hydrogen, contribute a minimum of one percent.

These broad transport goals are further reinforced by a suite of sector-specific regulations that leave no mode of transport untouched. The aviation industry, for example, is governed by the ReFuelEU Aviation regulation, which imposes a progressively increasing obligation on fuel suppliers to blend Sustainable Aviation Fuels (SAF) into the kerosene provided at EU airports. This mandate begins at 2 percent in 2025 and escalates dramatically to 70 percent by 2050, with a specific focus on promoting synthetic aviation fuels. In road transport, EU regulations are effectively setting a course to phase out the internal combustion engine for new vehicles. New passenger cars and light commercial vehicles are required to achieve a 100 percent reduction in CO2 emissions by 2035. The regulations for new heavy-duty vehicles follow a similarly steep trajectory, demanding CO2 emission reductions of 45 percent by 2030 and 90 percent by 2040. The maritime sector is also being brought into the fold through Regulation (EU) 2023/1805, which mandates a gradual reduction in the greenhouse gas intensity of marine fuels, starting with a 2 percent cut by 2025 and reaching an 80 percent reduction by 2050.

Poland’s Legislative Response and Adaptation

In response to these comprehensive EU directives, Poland is undertaking a significant overhaul of its domestic legal framework. The nation’s core legislation governing this area, including the Act on Renewable Energy Sources and the Act on Electromobility and Alternative Fuels, is in a state of continuous evolution to incorporate the new European requirements. A critical challenge has been the legislative lag in implementing the RED III Directive, for which the transposition deadline passed in May 2025. To rectify this, the government has published the initial assumptions for a draft amending act, designated UC106. This proposed legislation is designed to formally establish the national target for the share of renewable energy in transport at 29 percent by 2030 and to update the legal requirements for advanced biocomponents and RFNBOs to align with the new EU mandates. This crucial bill is expected to be adopted by the Council of Ministers in 2026 before it proceeds to the Parliament, marking a key step in synchronizing Polish law with EU climate ambitions.

Beyond the major legislative updates, the National Framework signals a series of targeted regulatory changes aimed at developing specific infrastructure and technologies essential for the transition. A significant development is the government’s move to unlock the potential of the domestic biomethane market. A new draft amendment to the RES Act, designated UD332, proposes the introduction of a robust auction system for large-scale biomethane producers, offering them 20-year contracts for difference. This long-term support mechanism is considered essential for providing the revenue stability and investment security needed to attract significant capital for larger projects. Furthermore, the framework outlines provisions to mandate the construction of shore-side electricity supply installations for major seaports and inland waterway ports by the end of 2029. Similar regulations are being prepared to require electrical power for aircraft during ground handling operations. In a forward-looking move, the framework also calls for the development of regulations for Vehicle-to-Grid (V2G) technology, which would allow electric vehicles to supply power back to the grid, transforming them into a distributed energy resource that can enhance overall grid stability.

Financial Support to Drive Investment

Recognizing that a stable regulatory environment must be complemented by strong financial incentives, Poland is deploying a series of support schemes to de-risk investments and accelerate infrastructure deployment. These initiatives build upon several successful programs implemented between 2022 and 2025, which provided foundational support for electric vehicle charging infrastructure and the initial construction of hydrogen refueling stations. Building on this experience, the National Framework announces new and updated support mechanisms tailored to the next phase of market development. A key initiative will be a new version of the support program for the construction of hydrogen refueling stations. This program will come with a significant long-term condition: any station receiving public funding must ensure that after December 31, 2035, it exclusively dispenses renewable RFNBO hydrogen. This requirement is designed to future-proof the infrastructure, guaranteeing its alignment with the EU’s long-term decarbonization goals and preventing the creation of stranded assets.

The government’s financial strategy also includes a strong focus on building a domestic production capacity for next-generation fuels. The finalization and implementation of the support scheme for large-scale biomethane production remains a high priority, as it is seen as a critical enabler for scaling up a key renewable gas resource. In addition, the Ministry of Climate and Environment is actively analyzing the potential launch of further national support mechanisms specifically for the production of RFNBO hydrogen. These new schemes could take the form of dedicated contracts for difference for hydrogen producers, offering them stable revenue streams, or they could leverage participation in auctions organized through the European Hydrogen Bank. This multi-pronged approach signals a clear strategic intent to not only build out refueling infrastructure but also to foster a robust and competitive domestic industry capable of producing the green fuels of the future, thereby enhancing Poland’s energy security and technological leadership in the region.

A Transformative Blueprint for the Future

The comprehensive strategy outlined in the National Framework represented a pivotal moment for Poland’s alternative fuels sector. Driven by the unyielding pressure of binding EU climate targets, the development of this market had shifted from a long-term aspiration to a strategic and immediate imperative. The legislative and financial initiatives launched constituted a clear and comprehensive blueprint for the transformation of the nation’s transport sector. The successful execution of this vision hinged on the swift and effective implementation of the announced regulatory changes, particularly the final transposition of the RED III Directive and the establishment of a bankable support scheme for large-scale biomethane. The framework provided the strategic direction, but its ultimate realization depended on sustained political will and the effective mobilization of both public and private capital. Poland’s alternative fuels market stood on the precipice of fundamental and far-reaching changes that would reshape its energy and transport landscape for decades to come.

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