Kraków waste plant faces rising CO2 emission costs

The inclusion of Kraków’s waste incineration plant into the European Union’s emissions trading system (ETS) presents a significant long-term financial challenge for the city’s waste management economy. Estimates suggest that the cost of purchasing CO2 emission allowances could reach several million PLN in 2031 and potentially exceed 100 million PLN annually by 2040.

These projections assume that approximately 60 percent of emissions are biogenic, as biodegradable waste fractions carry a zero emission rate in settlements. The final financial impact will depend heavily on the actual composition of incinerated waste and the market price of emission allowances, which could rise from 80 euro per ton in 2026 to as much as 300 euro per ton by 2040.

While the city acknowledges that the ETS will increase operating costs for the Thermal Waste Treatment Plant and the Kraków Municipal Holding, officials have not yet determined if or how these expenses will affect municipal waste collection fees for residents.