EMIS Emerging Market Information Service EMIS - Chemical Sector Poland | Page 16

Government Policy
The new packaging law that is due to enter into force in 2014 (the president signed it into law in July 2013) stipulates that by next year, Poland has to reach a recycling rate for all packaging of 55% (recycling of glass packaging as well as paper and cardboard - 60%, metal packaging - 50%, plastic packaging - 22.5% and wooden packaging - 15%). The new regulations apply to all packaging materials introduced to trade in Poland, regardless of the raw material used. Local governments will also be required to keep registers of enterprises that introduce packaged products on the market and/ or are dealing with recycling.

Packaging Law

Environment Protection

The chemical industry is still one of the sectors that emit the most greenhouse gases, even though it has limited its emissions in Europe by 50% since 1990. It is also decreasing its energy use faster than any other industry. Regardless, the European Union is introducing new regulations on greenhouse gas reductions. As a result, Grupa Azoty estimates that it will have to spend around PLN 1bn (EUR 0.23bn) during the next two years to lower its emissions of sulphur hexafluoride and nitrogen compounds.

Competition Risk

Ongoing market consolidation is bound to lead to the existence of stronger entities, able to beef up competition both domestically and in Europe. The competition risk will also rise further due to the expected capacity increases of European producers, including players in Russia, Ukraine and other CIS countries, as well as producers from the Middle East, Central Asia and the Far East in the next few years. The EU's decision to lower or lift excise taxes on imports would have a significant impact on the market's competitiveness.

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