Impact of environmental regulations on the activities of industrial companies

Appropriate preparation for these requirements will not only allow companies to meet legal standards but also create an opportunity to optimize costs and increase competitiveness. Investments in modern technologies and ongoing analysis of legislative changes that will shape the future of industry in Poland will be of key importance. Let's examine the regulations that will have the greatest impact on the functioning of Polish companies.

Main environmental regulations concerning industrial companies

European Green Deal

Goal: Climate neutrality of the European Union by 2050.

Assumptions:

• Reduction of greenhouse gas emissions by 55% by 2030 compared to 1990 levels.
• Supporting the circular economy.
• Investments in clean technologies and renewable energy.

The European Green Deal is a comprehensive plan aimed at reducing net emissions to zero. For industrial companies, this means the need to modernize production processes and move towards more sustainable business models. Companies must face the challenges of reducing waste, limiting the use of raw materials, and developing products with a lower carbon footprint.

Fit for 55 Package

Goal: Implementation of the Green Deal assumptions by reducing greenhouse gas emissions by 55% by 2030.

Assumptions:

• Modification of the EU ETS system, including increased costs for emissions and the inclusion of new sectors.
• Tightening of emission standards.
• Introduction of the Carbon Border Adjustment Mechanism (CBAM).
• Increased investment in renewable energy and energy efficiency.

For industrial companies, Fit for 55 means the need to quickly adapt to new regulations to avoid higher operating costs. At the same time, the package creates opportunities for financial support for companies implementing innovations to reduce emissions.

Emissions Trading System (EU ETS)

Goal: Reduction of CO₂ emissions through the emission allowance trading mechanism.

Assumptions:

• Companies must buy CO₂ emission allowances. If they exceed the granted limit, they must buy additional allowances on the market.
• Changes under Fit for 55: Extension of the system to new sectors and tightening of emission limits, which will affect costs for companies that emit CO₂ intensively, including those in industry and energy.

The ETS system requires companies to purchase an appropriate number of CO₂ emission allowances. Fit for 55 envisages a reduction in the pool of available allowances and the expansion of the system to new sectors. For industrial companies, this necessitates investments in technologies that reduce emissions to avoid high costs associated with purchasing allowances on the free market.

Energy Efficiency Directive (EED)

Goal: Increase energy efficiency in the EU by at least 32.5% by 2030.

Assumptions:

• Introduction of obligations for companies to conduct energy audits.
• Obligation for Member States to introduce regulations supporting improvements in energy efficiency in the industrial sector.

The Directive mandates that large companies conduct regular energy audits. Companies must identify areas requiring energy optimization and implement technologies that improve efficiency. Such actions, apart from ensuring compliance with regulations, can bring tangible benefits in the form of reduced operating costs.

Renewable Energy Directive (RED II)

Goal: Increase the share of renewable energy sources in final energy consumption to 32% by 2030.

Assumptions:

• Increase the share of green energy in production processes.
• Development of renewable energy (including installation of own renewable energy sources, such as photovoltaics or cogeneration).

The RED II Directive requires companies to use more renewable energy. For companies, this means investments in their own installations, such as photovoltaics or cogeneration systems, which will not only allow them to meet legal requirements but also reduce energy costs in the long term.

Carbon Border Adjustment Mechanism (CBAM)

The CBAM is intended to equalize competition between European companies and non-EU producers who do not meet high climate standards. This mechanism will impose additional fees for CO₂ emissions on the import of products such as steel, aluminum, or cement. For Polish industrial companies that import raw materials from outside the EU, CBAM means higher import costs and, consequently, the need to optimize supply chains. Companies will have to look for more sustainable suppliers or adapt their production processes to meet new climate requirements to avoid additional costs related to emission fees.

EU Taxonomy

The EU Taxonomy classifies economic activities according to their impact on sustainable development goals. For industrial companies, this requires proving that their investments are environmentally compliant to access preferential sources of financing. The taxonomy aims to facilitate financing for pro-ecological projects and prevent greenwashing, i.e., unfairly presenting activities as ecological. For industrial companies, this means demonstrating compliance with sustainable development principles to secure better financing conditions.

EU Funds and Projects Supporting Companies

Funds supporting the green transformation of industry are an important element of the European Union's policy aimed at achieving climate goals. Key programs such as the Modernization Fund or the Just Transition Fund offer financial support to companies adapting to new requirements. These funds are allocated to modernizing technologies, implementing innovative solutions, and reducing greenhouse gas emissions.

Thanks to these funds, companies can not only finance costly investments but also minimize increases in operating costs and improve competitiveness. For Polish industrial companies, access to these funds represents an opportunity to accelerate transformation towards sustainable development and build a stable position in the changing regulatory and market environment.

Opportunities and Challenges

New EU regulations require Polish industrial companies to adopt a strategic approach to energy and climate transformation. Despite the need for significant investment outlays, implementing solutions that reduce emissions and improve energy efficiency can bring long-term benefits, such as lower operating costs and a stronger competitive position in the international market. Adopting sustainable business models will become a key factor for success. 
In conclusion, the impact of environmental regulations on industrial companies is significant and multifaceted. These regulations not only compel companies to adapt to new standards but also create opportunities to modernize processes, improve efficiency, and gain a competitive edge. However, this requires a strategic approach that considers necessary investments and continuous monitoring of regulatory changes. Ultimately, companies that prepare effectively for these challenges will have a better chance to thrive in the sustainable and demanding market environment of the future.