The emissions trading scheme (EU ETS) cannot be regarded as functioning in accordance with the idea of a free market since the underlying mechanisms artificially limit the supply of allowances. In the ETS there are two groups of buyers. First, installations, that need allowances to conduct their business activities. Second, investors, that can substitute allowances for pretty much any other financial instrument. Investors face little to no risk, while installations have to buy EU allowances (EUA) at any price…

With growing concern, we have realised that the legislative proceedings with regard to the amendment to the so-called the “anti-windmill act” have significantly slowed down. The proposed changes to the regulations primarily aimed at liberalising the “10H rule”, according to which it is forbidden to locate wind farms next to buildings in a radius of less than 10 times the height of a wind turbine. This rule in its current wording is widely recognised as harmful to the investment potential of renewable energy sources…

The stress related to waiting for the next inflation readings has slightly eased. The Monetary Policy Council contributed to this state of affairs with their rather decisive, albeit delayed, decision to raise interest rates. This move resulted to some extent in restored credibility of the National Bank of Poland. Inflation readings in several countries of our region played an important role here: over the last month, they quite clearly exceeded inflation in Poland, thus signalling that it was not only a local problem…