The purpose of this paper is to present the evolution of energy and climate policy (globally, in Europe, and in Poland) and review the tools which Poland could use to transform its economy towards a low carbon one. The author argues that energy and climate policy have become an economic policy that calls for a change in the socio economic model. As a consequence, this low carbon transition brings a change in the current model of state and society. The author supports this thesis by presenting global trends in energy and climate policies, explaining the dynamics of the EU policies related to emissions reductions, and outlining the current dilemmas of the modernisation of Poland. The paper concludes by presenting a set of tools that could be used for low carbon transition in Poland.