Impact of environmental regulations on industrial companies

Impact of environmental regulations on industrial companies

The green transformation, which forms the foundation of the EU’s climate strategies, is not just a buzzword – it is a broad set of regulations and initiatives that will strongly influence both Polish and foreign companies in the coming years. Regulations such as the European Green Deal, Fit for 55, and the EU ETS system require businesses to implement solutions that reduce CO₂ emissions, improve energy efficiency, and increase the share of renewable energy sources.

Proper preparation for these requirements will not only ensure compliance with legal standards but also create an opportunity to optimize costs and increase competitiveness. Investments in modern technologies and ongoing analysis of legislative changes, which will shape the future of industry in Poland, will be crucial. Let us look at the regulations that will have the greatest impact on the operation of Polish enterprises.

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 a 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 enterprises, this means the need to modernize production processes and transition to more sustainable business models. Companies must face challenges related to waste reduction, limiting raw material consumption, and developing products with a lower carbon footprint.

Fit for 55

Goal: Implementation of the Green Deal objectives through a 55% reduction in greenhouse gas emissions by 2030.

Assumptions:

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

For industrial companies, Fit for 55 means the necessity to quickly adapt to new regulations to avoid higher operating fees. At the same time, the package creates opportunities for financial support for enterprises implementing innovations in emission reduction.

EU ETS

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

Assumptions:

  • Enterprises must purchase allowances for CO2 emissions. If they exceed the allocated limit, they must buy additional allowances on the market;
  • Changes within Fit for 55: Expansion of the system to new sectors and tightening of emission limits, which will impact costs for companies with high CO2 emissions, including industry and energy sectors.

The ETS system requires enterprises to purchase a sufficient number of CO2 emission allowances. Within Fit for 55, a reduction in the pool of available allowances and expansion of the system to new sectors is planned. For industrial companies, this means the need to invest in emission reduction technologies to avoid high costs related to purchasing allowances on the open market.

EU ETS - Emission Trading System in the European Union

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Energy Efficiency Directive (EED)

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

Assumptions:

  • Introduction of obligations for enterprises regarding energy audits;
  • Commitment of member states to implement regulations supporting energy efficiency improvement in the industrial sector.

The directive introduces the obligation for large enterprises to conduct regular energy audits. Companies must identify areas requiring energy optimization and implement technologies improving efficiency. Such actions, beyond compliance with regulations, may bring measurable 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 own RES installations such as photovoltaics or cogeneration).

The RED II directive imposes on enterprises the obligation to increase the use of energy from RES. For companies, this means the need to invest in own installations such as photovoltaics or biofuel cogeneration, which will not only meet legal requirements but also reduce energy costs in the long term.

Carbon Border Adjustment Mechanism (CBAM)

CBAM aims to level competition between European companies and producers outside the EU who do not meet high climate standards. This mechanism will impose additional fees for CO2 emissions on imports such as steel, aluminum, or cement. For Polish industrial companies importing raw materials from outside the EU, CBAM means higher import costs and consequently the need to optimize the supply chain. Companies will have to seek more sustainable suppliers or adjust their production processes to new climate requirements to avoid additional costs related to emission fees.

CBAM - Carbon Border Adjustment Mechanism

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EU Taxonomy

The EU taxonomy classifies economic activities according to their impact on sustainable development goals. For industrial companies, this means the necessity to prove that their investments comply with environmental protection principles in order to gain access to preferential financing sources. The taxonomy aims to facilitate financing access for pro-environmental projects and prevent so-called greenwashing, i.e., dishonest portrayal of activities as ecological. For industrial companies, this means the need to demonstrate that their investments, products, and processes comply with sustainability principles if they want to obtain better financing conditions.

EU funds and projects related to financial support for companies

Funds supporting the green transformation of industry are an important element of the European Union's policy aimed at achieving climate goals. The programs offer financial support to companies in the process of adapting to new requirements. These resources are allocated to technology modernization, the implementation of innovative solutions, and the reduction of greenhouse gas emissions.

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

Where can I obtain financing to implement the activities indicated in the audit?

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Opportunities and challenges

New EU regulations require Polish industrial companies to take a strategic approach to energy and climate transformation. Despite the need for significant investment outlays, the implementation of solutions that reduce emissions and improve energy efficiency can bring long-term benefits in the form of lower operating costs and a stronger competitive position in the international market. Adopting sustainable business models will become the most important element of success.

Summary

The impact of environmental regulations on the operations of industrial companies is significant and multifaceted. These regulations not only force companies to adapt to new standards but also create opportunities to modernize processes, improve efficiency, and gain a competitive advantage. However, this requires a strategic approach that takes into account both the necessary investments and the ongoing monitoring of changes in the regulatory environment. Ultimately, companies that properly prepare for the upcoming challenges will have a greater chance of growth in a more sustainable and demanding future market environment.

Knowledge base

What is Fit for 55 and how does it affect Polish industry?

Fit for 55 is a package of European Union regulations aimed at achieving a reduction in greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. It is a key component of the European Green Deal, which sets the goal of achieving climate neutrality by 2050. Fit for 55 includes changes to regulations on emissions trading, energy efficiency, renewable energy sources, and transport. It also introduces new support mechanisms and financial assistance programs across the European Union.

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Who is ESG reporting for, and what does it involve?

The modern industrial market is constantly challenged by high demands for environmental and social responsibility. Companies must respond to the evolving expectations of investors, customers, and legal regulators. One of the key tools that help industrial enterprises demonstrate their commitment to sustainable development is ESG reporting. What is an ESG report, who is required to prepare it, and what benefits can it bring to companies? You will find the answers to these questions in our article.

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Emission offsetting in industry – an effective solution or a facade of sustainability?

For over a decade, Polish and European industry has been facing a major challenge: reducing greenhouse gas emissions. The prospect of new, increasingly stringent regulations and programs calls for urgent action towards decarbonisation. Where emissions cannot be completely eliminated, so-called emission offsetting is becoming an increasingly common topic. What exactly is emission offsetting? What are its methods, advantages, and limitations? And is it truly an effective tool in the fight against climate change, or rather a form of greenwashing? We will try to answer these questions, paying particular attention to the context of industrial and energy-intensive companies.

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