Takeaway
The energy crisis is not over yet. According to Krzysztof Bolesta of DG ENER, there are still many unknowns in dealing with the energy crisis and we cannot afford to be optimistic. The panellist recommended caution in the introduction of further solutions; in his view, one should rather wait for the effects of those that are already in place. Dalida Gepfert, CEO of Veolia Contracting Polska, added that we were in a safe but not comfortable situation, especially in the context of coal prices. She expressed how businesses are concerned about state interventionism, which makes it difficult to shape long-term offers for customers expecting price predictability. The panellist emphasised that the implementation of legislative changes requires a deep commitment from the business sector.
Decarbonising the heating industry is difficult. According to Gepfert, the use of renewable energy sources (RES) in heat production is limited, as it usually has to be supplied to customers in winter, when photovoltaic panels produce less energy. Gepfert pointed to gas-fired units as the “only sensible alternative to coal”. She emphasised that the transformation of the heating sector should go in the direction of energy efficiency, which will reduce the use of fossil fuel energy. According to the discussion participant, the climate crisis is also a threat to the sector due to physical risks, such as natural disasters that can damage generation units and transmission networks.
Russia remains a player in the EU energy market. Senior analyst at Eurasia Group Federico Santi reminded that Russia was still among the top five exporters of gas to the EU, but pointed out that a full cut-off by Russia is unlikely and would no longer be such a significant problem. The participant in the debate emphasised that Europe's success in diversifying its supplies and reducing its gas consumption was at a cost of the economic slowdown and a decline in industrial production. In turn, according to Senior Analyst at ECFR Szymon Kardaś, the reduction of energy dependence on Russia is a paradigm shift and a return to business as usual is no longer possible. Once the war is over, however, Russia may tempt some EU countries and urge them to renew collaboration with companies operating on its territory.
The EU is not giving up on CO2 sequestration. Krzysztof Bolesta, who heads the DG ENER team preparing the EU strategy for the development of CO2 sequestration technology (Carbon Management Strategy), presented its general assumptions. He announced that it would be based on public aid mechanisms, the simplification of permitting processes, and targets for the development of CO2 storage capacity. He emphasised that CO2 sequestration technologies (CCUS) are needed especially in the decarbonisation of those industries that cannot completely eliminate greenhouse gas emissions, such as the cement, chemical, and steel industries. He also admitted that the EurCom's original intention to use CCUS technologies to decarbonise the power industry proved to be misguided, as the sector is decarbonising through other solutions, such as renewable energy generation. The Carbon Management Strategy is scheduled to be announced in autumn 2023.
Europe needs to agree on nuclear energy. Szymon Kardaś emphasised the harmfulness of the EU conflict over the role of nuclear energy in the community's climate policy. In his opinion, this issue requires mutual understanding and respect between countries that include nuclear power in their decarbonisation strategies, such as France, and those that have decided to phase out nuclear power plants, such as Germany. He stipulated that the role of RES in decarbonisation is much more obvious, but did not negate the potential of nuclear. He simultaneously reminded that Russia remains an important player in the European nuclear sector, supplying fuel to 18 reactors in Europe. 
* The Warsaw European Conversation conference was organised by Polityka Insight and the European Council on Foreign Relations. Event partners were Orange, Deloitte, European Climate Foundation, McDonald's, Nexity, Polski Związek Firm Deweloperskich, Veolia, Visa and Żabka Group.
