Poland close to blocking minority on CO2 -officials

                                
By Gabriela Baczynska 
                                
 WARSAW, Oct 6 (Reuters) - Poland has moved closer to
assembling a blocking minority among European Union members,
allowing them to seek changes to Brussels' proposed climate
package, Polish officials said.
                                
 Polish Environment Minister Maciej Nowicki said on Monday he
had reached a common view with Greece last week that more debate
was needed on the EU's package of climate measures.
                                
 Poland had earlier signed an accord to present a common
stance on the issue with fellow ex-communist EU nations Hungary,
Slovakia, Romania and Bulgaria.
                                
 He said Warsaw and Greece had agreed especially on their
common desire to slow a move towards making industry buy permits
to emit the greenhouse gas carbon dioxide (CO2) rather than
receive them for free.
                                
 "We have reached a far-reaching convergence of views (with
Greece) on a number of issues regarding the climate package,"
Nowicki told Reuters in a brief interview. "Among them on the
gradual introduction of the full CO2 auctioning." 
                                
 The European Commission -- the EU's executive arm -- aims,
among others goals, to cut carbon dioxide (CO2) emissions by a
fifth by 2020 compared to 1990 levels. Emergence of a blocking
minority would now force it to seek a compromise on that plan. 
                                
 Under the EU's voting rules, some decisions may be blocked
by a certain number of member states representing enough voting
power. The six countries would have enough votes to do so.
                                
 Nowicki said Poland did want to jeopardise the deal at the
EU's environment meeting on Oct. 20-21.
                                
 He said Poland recognised the need to cut emissions by a
fifth by 2020 but said the final details of how to achieve the
target should be worked out later. 
                                
 "Poland fully accepts the necessity of reducing CO2
emissions by 2020 but not in the formula now presented by the
European Commission," he said. "This would lead to the worsening
of the situation of Polish industry and the living standard of
the people."
                                
 The Commission proposes setting full auctioning of CO2
emission permits to utilities as of 2013. France wants to
conclude the EU's climate negotiations by the end its presidency
of the 27-nation bloc in December. 
                                
 Poland and others want to delay this, arguing their power
plants will not have enough cash to compete with giants like the
Germany's E.ON in the free-market auctions.
                                
 "According to the Polish proposal, 80 percent of emission
permits should be granted to the energy sector free of charge
and only 20 percent bought on the market," Nowicki said.
                                
 "Then, the number of free emissions should shrink by 10
percentage points every year. So full auctioning as of 2020, not
2013."
                                
 At present, industry get some permits for free and companies
have to buy additional ones only if they exceed their granted
quotas. 
                                
 A Polish source responsible for the negotiations told
Reuters the European Commission would now try to lure particular
countries away from the group around Poland, the biggest
ex-communist nation in the EU. 
                                
 "It's not the biggest success when you build up a blocking
minority. It's when the minority sticks together to the very
end," the source said.
 (Editing by Anthony Barker)