Polish utilities rise on EU carbon market reform hopes

Enea SA

17/03/2026 10:08

** Polish energy utilities surge as the sector rebounds following European Commission signals of a softer-than-feared approach to the carbon market

** Poland's energy index .ENER is up around 6% after falling more than 16% since the start of the U.S.-Israeli war against Iran

** As of 09:51 GMT, shares of state-controlled utility PGE PGE.WA rise around 7.0%, while shares of peers Tauron TPE.WA and Enea ENAE.WA rise 6.4% and 6.1% respectively  ** European Commission President von der Leyen said on Monday that the EU will make more carbon emissions permits available and allow more state aid to industries, while stopping short of major market interventions such as capping gas prices ** Trigon analyst Michal Kozak says the announcement suggested more free CO2 allowances for industry and a slower tightening of permit supply

** "The adoption of EU-level gas price caps is, in our view, unlikely," Kozak says in a note, adding that the likely approach would be to allow subsidies for consumers at the national level

** This scenario "could limit a rebound in CO2 prices (weakness versus gas and coal prices), which could be positive for PGE's results," Kozak says ** He adds the recent sell-off in Polish utilities had been an overreaction, with the market overly discounting risks including possible curbs on distribution profits

 (Reporting by Rafal Nowak)

 ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))