The energy group buys coal from coal mining. Payment tax to the budget occurs at the moment when coal is mined on the surface. The invoice issued by the mine specifies the amount of CAT tax. Of course, this affects the gross price of coal and makes coal uncompetitive as a source of energy. Unfortunately, owners of a coal power station don't have an alternative because they are not able to produce electricity without CO2 emissions. To move away from coal and build a wind power plant, a water power plant, or a nuclear power plant is needed. And here the CAT tax can be helpful. At the moment of the burning of coal, owners of coal power plants settle the paid CAT tax and apply to the Ministry of the Environment for subsidies, with the proviso that the entire amount of the subsidy will be allocated to the emission-free sources of energy. Whether the owners invest their money in a nuclear or solar plant depends on their decision. Let the free market decide.
After building an emission-free power plant energy group has two power plants: first, it uses expensive coal, and a second,d emission-free power plant which uses an energy source that is included in the CAT tax. This means that faster or later coal power plants will be closed and in this way, we will achieve the main goal for the CAT tax, which reduction of CO2 emissions.
Simultaneously, a newly built emission-free power plant is starting to make profits to the energy group. So the money invested goes back to the investor as a dividend.
Now, a little digression. The Polish capital is just beginning. We have only 25 years of experience in this field. Our domestic capital is simply too weak to bear the costs of building a nuclear power plant. Even windmills are built by foreign investors. And then the CAT tax can be useful. State subsidies paid to CO2 emitters will make it possible to decarbonize the whole Polish industry only with Polish capital. Maybe we will be able to finance this way, building our first nuclear plant.
Of course, dividends will be taxed as well as the building of an emission-free power plant, manpower, and so on. In this way, a large part of the subsidy will return to the budget. The society will also benefit in another way. Environmental pollution will be reduced a new place of work will be created.