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

What is the legal basis for Fit for 55?

The Fit for 55 package includes modifications to existing regulations as well as new ones. The most important legal acts are:

• Reform of the ETS system (EU ETS) – the extension of the EU emissions trading system to additional sectors and the gradual reduction of free emission allowances,
• Renewable Energy Directive (RED III) – an increase in the target for the share of renewable energy sources in the EU energy mix to 42.5% by 2030,
• Energy Efficiency Directive (EED) – stricter requirements for reducing energy consumption,
• CBAM mechanism – the gradual introduction of CO₂ emission fees on goods imported into the EU from countries outside the ETS,
• New emission standards for vehicles – a ban on the sale of new combustion-engine cars from 2035,
• Energy Taxation Directive (ETD) – changes to the energy tax system to promote low-emission energy sources.

What does the Fit for 55 program include?

The Fit for 55 package introduces a range of reforms aimed at accelerating decarbonization across various sectors of the economy. One of the key elements is the reform of the EU Emissions Trading System (EU ETS), which entails a gradual reduction in the number of free emission allowances and an extension of the system to new sectors, such as maritime transport and construction. A new ETS II system is also being introduced, covering road transport and buildings, meaning that businesses in these sectors will face additional costs related to CO₂ emissions.

Another important component of the package is the Carbon Border Adjustment Mechanism (CBAM), which imposes additional fees on high-emission goods imported into the EU, such as cement, steel, and aluminum. Its goal is to create a level playing field between EU producers, who are subject to the ETS, and non-EU companies that do not have to comply with such strict emission regulations.

Fit for 55 also introduces ambitious targets for the energy transition. The amendment to the Renewable Energy Directive (RED III) stipulates that by 2030, at least 42.5% of energy consumed in the European Union must come from renewable sources. This, combined with the new requirements of the Energy Efficiency Directive (EED), which imposes stricter obligations for reducing energy consumption, means that companies will need to implement more efficient and environmentally friendly technologies.

Additionally, Fit for 55 introduces new vehicle emission standards, meaning that from 2035, new combustion-engine cars will no longer be sold in the European Union. This is a step toward the electrification of transport and the reduction of emissions associated with mobility. Another major element of the reform is the new Energy Taxation Directive (ETD), which aims to modify the tax system to favor low-emission energy sources and limit financial support for fossil fuels.

What changes are coming with the Fit for 55 package?

Reducing emissions and improving air quality

One of the main objectives of Fit for 55 is to cut greenhouse gas emissions by at least 55% by 2030. Reducing emissions not only helps achieve climate goals but also improves air quality in EU countries. Sectors such as energy, transport, and industry will be required to gradually phase out fossil fuels and implement cleaner technologies, leading to reductions in smog and other air pollutants.

Increased investment in renewable energy and new technologies

Fit for 55 increases the pressure to develop renewable energy sources (RES), as the RED III directive mandates that by 2030, at least 42.5% of the EU’s energy must come from RES. Companies and member states will need to accelerate investments in wind farms, photovoltaics, energy storage technologies, and hydrogen-based solutions. The growing interest in low-emission technologies creates new opportunities for energy-sector companies and manufacturers of advanced energy systems, fostering innovation and job creation.

Increased energy independence for the European Union

The energy transition driven by Fit for 55 will help reduce the EU’s dependence on fossil fuel imports, particularly natural gas, coal, and oil. Recent years have demonstrated how unstable raw material supplies and rising prices can affect European economies. Diversifying energy sources, expanding renewable energy, and promoting energy efficiency will enable EU countries to reduce their vulnerability to fuel market fluctuations and geopolitical risks associated with energy imports.

Competitive advantage for companies implementing ecological solutions

Companies that quickly adapt to new requirements and invest in innovative, low-emission technologies can gain a competitive edge in European and global markets. Fit for 55 stimulates the development of the green technology sector and rewards businesses that prioritize energy efficiency and carbon footprint reduction. Thanks to the new regulations, EU companies will be able to offer more environmentally friendly products and services, increasing their long-term appeal to customers and investors.

Financial support and new aid mechanisms

The implementation of Fit for 55 involves the launch of numerous funds and support mechanisms to help businesses adapt to the new regulations. The European Union provides financial resources for energy transformation, which companies can use to modernize infrastructure, improve energy efficiency, or implement new low-emission technologies. For many businesses, access to these funds could serve as a catalyst for growth and enhanced competitiveness.

New jobs in sectors related to the green economy

The energy transformation accelerated by Fit for 55 opens up new employment opportunities in sectors related to the green economy. The growth of investment in renewable energy sources, the modernization of energy infrastructure, and the development of new technologies will create demand for specialists in fields such as energy engineering, automation, energy management, and the circular economy. The transition to a more sustainable economic model can also stimulate the development of local supply chains and contribute to the creation of new jobs in various regions of Europe.

Improving the position of European companies on international markets

The introduction of Fit for 55 can also strengthen the position of European companies in international markets. In many countries outside the EU, interest in sustainable products and services with a low carbon footprint is growing, which means that European companies can become leaders in this field. By adapting to restrictive emission standards earlier, companies operating in the EU can gain an advantage over competitors from outside Europe, which will have to implement similar solutions.

Disadvantages of the Fit for 55 package

One of the disadvantages of the program is the high implementation costs, especially for companies in energy-intensive sectors that need to invest in new technologies. Despite the gradual implementation of CBAM, there is also a risk of relocating production outside the European Union to countries with less restrictive regulations, which may negatively affect the competitiveness of European companies.

Additionally, the lack of sufficient financial support for all industries, especially those with high emissions, may make it very difficult for some sectors to adapt to the new regulations. The complexity of the regulations and reporting requirements may lead to errors and delays in implementation. Finally, the uneven pace of transformation in different EU countries may weaken the coherence of climate policy, and the lack of access to appropriate technologies may make it difficult to achieve the goals. As a result, the package may increase production costs, which will affect the competitiveness of European industry in the global market.

Impact of Fit for 55 on Polish industry

The Fit for 55 package poses a significant challenge to Polish industrial companies, especially in energy-intensive sectors such as steel, cement, chemicals, and paper. It affects them mainly through:

• higher energy costs – the gradual withdrawal of free CO₂ emission allowances and the increase in the price of electricity from fossil fuels will raise company expenses,
• the need to invest in decarbonization – companies will have to implement technologies that improve energy efficiency and shift to less emission-intensive energy sources,
• CBAM is protection, and EU ETS is a challenge – these mechanisms protect EU producers from competition outside the EU but increase the costs incurred to reduce emissions,
• an opportunity for financial support – companies can use EU funds to invest in renewable energy and energy efficiency, which can reduce the costs of adapting to new regulations.

"To achieve the intended goals, it will be necessary to provide appropriate financial support and flexibility in implementing changes. Although the future of the Fit for 55 package is associated with many difficulties, it is nevertheless a significant step toward a sustainable economy that will be more resilient to the challenges of climate change. It will be important for Polish and European companies to properly adapt to the new requirements and invest in low-emission technologies to maintain competitiveness in the EU market. Regardless of the constantly changing regulations and regulatory requirements, we believe that decarbonization and striving for maximum energy efficiency is the only right path. We help our clients do it in a way that is profitable for them." – says Dr. Dominik Brach, Vice President of the Management Board of DB Energy.

To sum up, the Fit for 55 package is a key element of the EU strategy on the path to achieving climate neutrality by 2050. Although it offers significant benefits, such as support for green technologies and stimulating energy transformation, its implementation is associated with serious challenges. High investment costs, the risk of relocating production outside the European Union, and the complexity of regulations can be significant obstacles, especially for industrial companies that have to adapt their production processes to new standards.