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Regulatory Environment

The regulatory environment remains one of the most significant external factors shaping the ORLEN Group’s operations. As a sector that plays a critical role in the economy and the climate transition, the fuel and energy industry is subject to a broad and increasingly complex regulatory framework covering areas such as emissions reduction, the development of low-carbon technologies, energy security, and the operation of fuel and energy markets.

At EU level, the most important changes include the revision of the 2040 climate targets, the reform of the EU ETS, and the postponement of the launch of the EU ETS2 system, as well as regulations relating to hydrogen, biomethane, sustainable aviation fuels (SAF), and methane emissions reduction in the energy sector. Other essential regulations are the rules governing the gas and hydrogen market, energy sanctions, and regulations phasing out imports of commodities from Russia and Belarus.

In Poland, major reforms are being introduced in areas including the hydrogen market, the emergency stocks system, the implementation of renewable energy targets and the National Indicative Target, energy efficiency, auction schemes for renewable energy and biomethane, as well as new support mechanisms for energy consumers. At the same time, work is under way on material draft legislation concerning the ETS, the energy market, grid connections, extended producer responsibility (EPR), and the deposit-return system.

These regulations have a direct bearing on the ORLEN Group’s operations, particularly in the Refining, Petrochemicals, Energy, Gas and Retail segments, influencing investment priorities, operating costs and the pace of the energy transition.

Regulatory environment in the EU

List of key EU laws and regulations of relevance to the ORLEN Group

Laws/RegulationsDescriptionRelevance to the ORLEN Group business segmentsStatus
Amendment to the European Climate Law and the proposed 2040 climate target; COM/2025/524 final The EU and its Member States have committed to achieving climate neutrality by 2050. A first intermediate target has been set to reduce net greenhouse gas (GHG) emissions by at least 55% by 2030, and the European Commission has been tasked with developing a further intermediate target for 2040. Once the firm 2040 target has been adopted, work will begin on the energy and climate policy framework for the period beyond 2030. The agreed solutions provide for:
  • introducing a climate target to reduce net GHG emissions by 90% versus 1990 levels, with international carbon credits allowed for up to 5% of the EU’s 1990 net emissions from 2036, following a pilot phase planned for 2031–2035;
  • postponing the launch of the EU ETS2 from 2027 to 2028;
  • reviewing the target every two years, with an option to revise it if needed;
  • considering by the European Commission of a slower phase-out of free allocations from 2028 onwards and a review of the Market Stability Reserve;
  • taking into account the following in implementing the target: energy availability and affordability, security of supply, energy security and energy efficiency.
The interinstitutional negotiations confirming the above were concluded on 10 December 2025, and the regulation was expected to be adopted in the first half of 2026. 		High - EnergyExisting regulation
Directive (EU) 2023/2413 of the European Parliament and of the Council (“RED III”) – revision of Directive (EU) 2018/2001 The agreed solutions provide for:
  • raising the 2030 target of a 14% minimum share of renewable energy in the transport sector and giving the Member States the option to meet the increased target by achieving: 1) a 29% share of renewable energy in the transport sector, or 2) a 14.5% reduction in greenhouse gas intensity (doubling the ambition of RED II);
  • establishing a combined target for the share of advanced biofuels/biogas and renewable fuels of non-biological origin (RFNBOs) in the transport sector at 1% in 2025 and 5.5% in 2030, with a target minimum share of RFNBOs in 2030 at 1%;
  • introducing an industrial target for RFNBO fuels as part of hydrogen used in industry at 42% by 2030 and 60% by 2035.
The Directive is addressed to the Member States, which are required to transpose its regulations by 21 May 2025 (and for certain provisions, by way of an exception, by 1 July 2024).

RED III repeals the EU regulations that formed the basis of the Polish National Reduction Target framework. 		HighExisting regulation
Regulation (EU) 2023/2405 of the European Parliament and of the Council (“ReFuelEU Aviation”) The Regulation requires aviation fuel suppliers to gradually increase the share of sustainable aviation fuels (SAF) blended into the aviation fuels supplied at EU airports:
  • the minimum required share of SAF at 2% will apply as of 2025, and will grow significantly (6% by 2030, 20% by 2035) to 70% by 2050; synthetic fuels (e-JET) based on RFNBOs and low-carbon hydrogen will be promoted in particular through a dedicated sub-target, with their share increasing gradually – 1.2% in 2030-2031, 5% by 2035, and 35% by 2050.
High – DownstreamExisting regulation
Regulation (EU) 2024/1787 of the European Parliament and of the Council of 13 June 2024 on the reduction of methane emissions in the energy sector The Regulation imposes obligations on oil and gas sector companies to prevent methane emissions from infrastructure.

Requirements for production and transport companies will include in particular infrastructure monitoring, leak detection and repair, methane emissions reduction (e.g. ban on routine flaring and venting), and securing inactive wells.

Under the new regulations, importers will be obliged to obtain from their third-country suppliers information on the procedures they apply to reduce methane emissions. From 2027 onwards, import contracts may be entered into only with suppliers that apply methane emission monitoring measures equivalent to those required of EU operators. 		High – Upstream and SupplyExisting regulation
Revision of the EU Emissions Trading System DirectiveIn 2025, the Directive was amended to postpone the implementation of the EU ETS2 from 2027 to 2028.High – Downstream, EnergyExisting regulation
Commission Delegated Regulations (EU) 2023/1184 and 2023/1185 supplementing Directive (EU) 2018/2001 Requirements to be met for hydrogen to be certified as an RFNBO:
  • rules on when electricity used to produce hydrogen may be classified as 100% renewable;
  • the life-cycle assessment (LCA) methodology for verifying whether an energy carrier (RFNBO/RCF) meets the required 70% GHG emissions reduction threshold (carbon intensity of no more than 28.2 g CO2 eq/MJ).
At EU level, there are currently no certification schemes recognised by the European Commission that confirm compliance with the above requirements. 		HighExisting regulation
Directive (EU) 2024/1788 of the European Parliament and of the Council of 13 June 2024 on common rules for the internal markets for renewable gas, natural gas and hydrogen, and Regulation (EU) 2024/1789 of the European Parliament and of the Council of 13 June 2024 on the internal markets for renewable gas, natural gas and hydrogen The EU hydrogen and gas decarbonisation package is designed to support the development of the low-carbon and renewable gases sector. Its purpose is to create a new internal market for hydrogen while, in parallel, gradually transforming the natural gas market by promoting the blending of renewable and low-carbon gases into pipeline gas.

In principle, the Regulation has applied directly since 5 February 2025. The Directive must be transposed into Polish law by 5 August 2026.

The package includes regulations on:
  • a general framework defining low-carbon gases, with further detail to be set out in a delegated act;
  • rules governing the functioning of infrastructure operators (transmission, distribution, storage and terminals) in the new hydrogen market;
  • measures to promote injecting low- and zero-carbon gases (e.g. hydrogen, biomethane) into gas networks by offering network tariff discounts;
  • the option for Member States to restrict supplies of natural gas, including liquefied natural gas (LNG), from Russia or Belarus;
  • the possibility of applying, without time limit, discounts of up to 100% on entry transmission tariffs for gas entering the transmission network from LNG terminals;
continued operation of the voluntary gas demand aggregation mechanism. 		HighExisting regulation
Communication from the Commission amending the Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading system post-2021 The list of sectors eligible for compensation for indirect EU ETS costs has been extended to include:
  • production of other inorganic basic chemicals (NACE 20.14);
  • manufacture of fertilisers and nitrogen compounds (NACE 20.15);
  • manufacture of plastics in primary form (NACE 20.16).
Member States were given the discretion to choose to compensate the newly eligible sectors for indirect emission costs incurred in 2025.

The maximum aid intensity was raised from 75% to 80% for the sectors previously deemed to be exposed to a genuine risk of carbon leakage due to indirect emission costs. For the newly added sectors, the rate was set at 75%. 		HighExisting regulation
Regulation on phasing out Russian natural gas imports and preparing the phase-out of Russian oil imports, improving monitoring of potential energy dependencies and amending Regulation (EU) 2017/1938 The Regulation was adopted by the European Parliament on 17 December 2025, with formal adoption by the Council expected in January 2026.

The Regulation provides for:
  • a prohibition on imports of LNG and pipeline gas from Russia, entering into force six weeks after the effective date of the Regulation (i.e. expected to start applying in the first quarter of 2026), subject to transitional periods for existing contracts;
  • a prior authorisation procedure for gas imports to ensure that the ban on Russian gas imports is enforced in practice;
  • penalties for failure to comply with the ban;
an option to temporarily suspend the application of the Regulation in the event of sudden and significant developments which seriously threaten the security of energy supply of one or more Member States. However, the suspension is permitted only in cases where an emergency is declared by a Member State, applies only for a limited period (up to four weeks) and only to short-term supply contracts. 		HighExisting regulation
Amendments to the following, adopted in 2025:
  • Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine, or
Council Regulation (EC) No 765/2006 of 18 May 2006 concerning restrictive measures in view of the situation in Belarus and the involvement of Belarus in the Russian aggression against Ukraine, that is, the so-called 16th, 17th, 18th and 19th sanctions packages. 		In 2025, the European Union adopted four new sanction packages targeting the Russian Federation and the Republic of Belarus, commonly referred to as the 16th, 17th, 18th and 19th sanctions packages.

The following had the greatest impact on the energy sector:
  • the expiry of derogations allowing certain EU Member States to continue importing Russian crude oil or petroleum products;
  • lowering of the oil price cap for Russian crude, together with a mechanism for its periodic review and adjustment;
  • the introduction of a ban on imports of petroleum products falling under CN code 2710 where imported from third countries and produced from Russian crude oil;
  • the introduction of a ban on imports of liquefied natural gas (LNG) from Russia, to take effect in stages in 2026 and 2027;
  • the expansion of measures targeting shadow fleet vessels, involved in transporting Russian crude oil or petroleum products;
  • the expansion of sanctions targeting individuals and entities from the Russian energy sector.
The energy sector is also affected by sanctions imposed under other jurisdictions, including those of the United States and the United Kingdom. 		High - DownstreamNew regulation
Regulation (EC) No 852/2004 of the European Parliament and of the Council of 29 April 2004 on the hygiene of foodstuffs OJ L 139, 30.04.2004, p. 1–54 (ES, DA, DE, EL, EN, FR, IT, NL, PT, FI, SV) The principal objective of the hygiene rules is to ensure a high level of consumer protection with regard to food safety. All individuals working in the food sector are required to ensure that food is handled in a safe and hygienic manner, so that no food-borne hazards occur at any stage of the production process. This can be achieved by applying good hygiene practices and procedures based on the principles of Hazard Analysis and Critical Control Points (HACCP). High – Consumers and ProductsExisting regulation

Regulatory environment in Poland

List of key Polish laws and regulations of relevance to the ORLEN Group

Laws/RegulationsDescriptionRelevance to the ORLEN Group business segmentsStatus
Act Amending the Act on Biocomponents and Liquid Biofuels and Certain Other Acts of 21 February 2025 The Act implements into Polish law the RED II provisions on the use of low-carbon fuels and electricity in transport. The Act of 21 February 2025 provides for a gradual increase in the National Indicative Target, from 9.2% in 2025, to 10% in 2026–2029, and then to 14.9% in 2030. High – DownstreamAmendment to existing regulations
Act Amending the Energy Law and Certain Other Acts of 21 November 2024 The Act entered into force on 20 January 2025. It establishes a regulatory framework for the operation of the hydrogen market in Poland by: introducing a set of definitions into energy law, creating a framework enabling cross-sectoral activities involving natural gas and hydrogen, establishing a framework for certification and designation of hydrogen network operators, defining the regulatory framework for licensing hydrogen trading and storage activities, and laying down rules for the operation of hydrogen networks. High – Downstream, Upstream & SupplyExisting regulation
Act Amending the Act on Reserves of Crude Oil, Petroleum Products, and Natural Gas and on Measures to Address Threats to the State's Fuel Security and Disruptions in the Oil Market, and the Energy Law of 12 September 2025 The Act introduces major changes to Poland’s emergency stocks system, which governs the creation, maintenance and financing of stocks of crude oil, petroleum products and natural gas in Poland.

The share of agency-held stocks maintained by the Government Strategic Reserves Agency (RARS) is to increase, while the mandatory stock maintenance obligations for businesses will be reduced. The stocks will be transferred to the President of RARS in accordance with an established timetable. The reduction in emergency stock volumes required to be maintained by businesses and the increase in RARS stocks will be a phased process implemented over the three-year period from 2025 to 2027.

In relation to gaseous fuels, the Act allows RARS to continue providing the ticketing service in the 2025/2026 gas year. 		High – Downstream, Upstream and SupplyAmendment to existing regulations
Draft Act Amending the Act on Trading in Greenhouse Gas Emissions Allowances and Certain Other Acts (ETS1) (UC39) The draft provides for the gradual phase-out of free allowance allocations for aircraft operators and the transition to full auctioning from 2026, tightens the rules governing free allocations for stationary installations by introducing mechanisms designed to encourage green investment, and extends the EU ETS to maritime transport, installations that did not previously meet the inclusion criteria because they used biomass boilers, as well as installations previously classified as installations using exclusively biomass.

The draft assumes that the Modernisation Fund allocation for Poland will be increased by an additional pool equivalent to 2.5% of the total number of EU allowances, of which 34.2% has been earmarked for Poland. The funding would be used to modernise the energy system and improve energy efficiency. At least 90% of the new pool must be spent on priority areas, such as renewable energy sources, energy storage and transmission networks. Under the new rules, 100% of the proceeds from the sale of allowances, or their financial equivalent, must be used for climate protection and the energy transition. The proposed new regulations expand the powers relating to emissions monitoring and enforcement for the National Centre for Emissions Balancing and Management (KOBiZE), the Chief Inspectorate of Environmental Protection (GIOŚ), the Provincial Inspectorate of Environmental Protection (WIOŚ) and directors of maritime offices. 		High – Downstream, EnergyDraft amendments to existing regulations
Draft Act Amending the Energy Efficiency Act and Certain Other Acts (UC77) The draft legislation introduces a requirement to apply the Energy Efficiency First (EE1st) principle when planning major energy investments, that is projects exceeding EUR 100 million or, in the case of transport infrastructure, EUR 175 million.

It raises the national target for final energy consumption savings (the cumulative amount of total final energy savings) in 2021–2030 from 30,714 ktoe to 44,465 ktoe, while keeping the current target for obligated parties under the white certificate scheme unchanged, with most of the additional savings to be delivered through alternative measures. Public institutions are given a specific target to reduce total final energy consumption by 1.9% annually versus 2021 levels (with the requirement applying to cities with more than 50,000 inhabitants from 1 January 2027 and to rural areas from 1 January 2030).

The draft also introduces direct incentives for projects carried out under the ESCO (Energy Service Company) model as part of the white certificate scheme, including a lower threshold for average annual energy savings required to qualify for an energy efficiency certificate and streamlined verification rules. It retains the alternative compliance fee mechanism, while introducing operational improvements intended to avoid financial penalties.

The proposed amendment also changes the thresholds and obligations applicable to businesses, providing for a requirement to implement and certify an energy management system where average annual final energy consumption exceeded 23.611 GWh over the preceding three years, and a mandatory energy audit every four years where annual energy consumption reaches 2.78 GWh. 		High – Downstream, Energy, Upstream & SupplyDraft amendments to existing regulations
Draft Act Amending the Energy Law and Certain Other Acts (UC84) The proposed legislation provides for a major reform of the Energy Law designed to address the shortage of available grid connection capacity and remove one of the main barriers to the energy transition. At the heart of the reform is a change to the rules for connecting installations to the electricity grid.

The main elements of the draft regulations include:
  • the right to a fixed-term contract with a guaranteed fixed price for at least one year;
  • the option to have multiple energy offtake points (consumption metering points) served by a single service line, subject to a capacity limit;
  • flexible and configurable grid connection agreements under which available connection capacity may be capped or curtailed in certain circumstances;
  • the possibility for PSE to allocate grid connection capacity for renewable energy sources or storage facilities through competitive procedures in 2026–2028;
  • streamlining of the grid connection process and more efficient use of infrastructure;
  • changes relating to REMIT and network development planning.
The Act will also allow electricity to be sold, stored and used for the provision of system services during the commissioning phase. 		High – EnergyDraft amendments to existing regulations
Draft Act Amending the Energy Law, the Renewable Energy Sources Act (UD284), and Certain Other Acts with a View to Deregulating the Energy Sector (UDER92) The draft regulation reinstates an obligation for electricity producers to sell 80% of their electricity output through the Polish Power Exchange or platforms operated by nominated electricity market operators (NEMOs).

Exemptions would apply to electricity supplied to a final consumer via a direct line; electricity generated in a renewable energy source with a total capacity of less than 10 MW or in another generating unit with a total capacity of less than 50 MW; electricity generated in high-efficiency cogeneration units with an average annual conversion efficiency above 52.5%, connected directly either to the equipment or installations of the final consumer of that electricity or to a distribution network operated by that final consumer; electricity consumed by the producer for its own needs; electricity generated and supplied under a renewable electricity sale agreement concluded with a final consumer and entered in the ERO register; and electricity required for transmission or distribution system operators to perform their statutory duties.

Those exemptions would not apply to electricity purchased and sold between electricity market participants within a single group of companies. Electricity sale agreements concluded before the entry into force of the Act would continue in effect.

The draft also increases the volume of high-methane natural gas required to be sold through a commodity exchange or on a market organised by an entity operating a regulated market in Poland from the current 55% to 85%. 		High – Energy, Upstream & SupplyDraft amendments to existing regulations
Draft Act Amending the Renewable Energy Sources Act and Certain Other Acts (UD332) The draft act includes amendments to the Wind Farm Projects Act, changing the required distance between onshore wind farms and extra-high-voltage lines, and allowing the planning and environmental procedures to run in parallel.

It also changes the rules on virtual prosumers by requiring at least 10% of the installed capacity of an onshore wind farm to be made available to residents of the municipality where the project is located and of a neighbouring municipality, in return for an agreed fee.

The new regulations further introduce an auction-based support scheme for biomethane installations with a capacity above 1 MW, based on a pay-as-bid model, change reference price under the feed-in premium support scheme, which applies to existing installations with a capacity of up to 1 MW, and streamline the support system for modernised hydropower plants.

Other proposed changes include allowing electricity generated and sold during periods of negative prices to be eligible for settlement under the renewable energy auction support scheme, and changing the auction system for biogas- and biomass-fired sources by lowering the minimum electricity delivery threshold in the bid to 65%, from the current 85%.

The proposed act broadens the definition of a renewable energy source to include not only electricity storage, but also heat storage and cooling storage.

Lastly, it introduces a new method for the settlement of the negative balance (the amount of support payable when the market price obtained by the energy producer is below the auction reference price) for solar PV farms that have won renewable energy auctions and feed electricity volumes into the grid at no more than 50% of their installed capacity, which would apply for a period of 12 months. 		High – EnergyDraft amendments to existing regulations
Act Amending Certain Acts to Improve Support Mechanisms for Electricity and Heat Consumers of 18 December 2025 The Act extends until 30 June 2026 the deadline for micro, small and medium-sized enterprises (SMEs) to provide electricity sellers with information on the amount of aid they were granted in connection with the application of the maximum electricity price in the second half of 2024 (under the Act on Extraordinary Measures to Limit Electricity Prices and Support Certain Consumers in 2023–2025 of 27 October 2022).

It also streamlines the process of handling Home Heating Bills Discount Scheme applications from eligible household consumers. 		High – EnergyNew regulation
Act on the Home Heating Bills Discount Scheme and on Amendments to Certain Other Acts to Limit Electricity Prices of 12 September 2025 The Act introduces a Home Heating Bills Discount Scheme for households with incomes meeting the statutory thresholds for single-person and multi-person households that use district heating and incur heat costs of more than PLN 170/GJ, net.

It also freezes electricity prices for households at PLN 500/MWh in the final quarter of 2025. 		High – EnergyNew regulation
Draft Act on Packaging and Packaging Waste (UC100) The draft act is designed to implement a new model of Extended Producer Responsibility (EPR) into Polish law and introduce changes relating to single-use plastic (SUP) products and the deposit-return system.
As regards the EPR system:
  • the existing definitions of ‘entity introducing packaged products into the market’ and ‘entity introducing packaging into the market’ would be replaced with a new definition of ‘producer’; as part of producers’ financial responsibility, a packaging fee would be introduced, payable by the producer for each kilogram of packaging (including packaging of a packaged product) that the producer first makes available in the territory of a Member State or unpacks without being the end user;
  • the funds generated under the EPR system would be managed by the National Fund for Environmental Protection and Water Management (NFOŚiGW) acting as the producer responsibility organisation (PRO); these funds would include the proceeds from packaging fees, to be transferred quarterly by the province marshals; from 2028, producers paying the packaging fee (currently: entities introducing packaged products into the market) would no longer be required to meet specified recycling targets, and the packaging product fee would be abolished;
  • a two-year transitional period would be introduced, after which the EPR system for packaging would be fully implemented.
As regards the SUP fee, the deadline for transferring the fee to the province marshals’ bank accounts would change from annual to quarterly, in line with the approach already used for the recycling fee. Doprecyzowanie także, że jednostki gastronomiczne również są obowiązane do pobierania tej opłaty oraz wprowadzono obowiązek prowadzenia ewidencji wszystkich rodzajów toreb na zakupy. 		High – Consumers and ProductsNew regulation

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on the activities of the ORLEN Group and ORLEN S.A. for 2025.

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