Overview of Funds for Environment

in Poland

Fundetec Public Funding Workshop

Eniko Artim Project Manager

RECEartim@rec.org

Financing Environmental technologies in Poland 2007-2013National Fund for Environmental Protection and Water Management

EkoFund

Bank Ochrony Środowiska: preferential pro-ecological credits eg. for investments in the agriculture production.

Bank Gospodarstwa Krajowego: technological credit to purchase new technology or modernize own one

National Fund for Environmental Protection and Water

Management

Information received from :

Mr. Piotr Ruciński

Environmental protection and water management funds were established in 1989 by the Environmental Protection

Act

National Fund National Fund

16 provincial funds16 provincial funds

373 county funds373 county funds

2489 communal funds2489 communal funds

7.6%5.6% 5.0%

45.7%

21.8%

14.3%

Own resources Environmental funds

Foreign resources Bank credits

Central and provincial budgets Other

Sources of financing environmental protection and water management in 2004

Environmental funds` revenues come from:

Fees for exploitation of the environment

Penalties for exceeding pollution limits

Fees and penalties are collected by provintial authorities and then distributed among the funds.

Forms of financing environmental protection

Loan financing (loans, credit lines)

Grant financing (grants and subsidies to commercial credits)

Capital investments

Receipts and expenses of the National Fund in 2005

in mln EUR

ReceiptsReceipts

Fees and Fees and penaltiespenalties 130,8130,8

Loan Loan repaymentrepayment 216,3216,3

InterestInterest 37,337,3

OtherOther 16,916,9

TOTALTOTAL 401,3401,3

ExpensesExpenses

Loan financingLoan financing 256,6256,6

Grants financingGrants financing 155,5155,5

Capital Capital investmentsinvestments 23,523,5

TOTALTOTAL 435,6435,6

Supported areas

1. Water protection and water management – 41%

2. Air protection – 17%3. Land protection – 6%4. Nature protection and forestry – 4%5. National environment monitoring –

7%6. Avoidance and liquidation of serious

failures – 3%7. Geology – 5%8. Mining – 5%9. Ecological education – 2%10. Other – 10%

Cohesion Fundbudget for period 2004-2006 - 1,8 bln EUR

Beneficiaries:Local governments and their associations, municipal companies or other public entities

Supported projects:

• Improvement of surface water quality

• Improvement of drinking water quality and distribution

• Waste management and protection of land

• Improvement of air quality

• Anti-flood security

Structural funds (ERDF)

Budget for period 2004-2006 - 155 mln EUR

Beneficiaries:

Private sector companies

Supported projects:

Adjusting companies to certain environmental standards (BAT, sewage, air, waste)

Challenge for period 2007-2013 - Programme „Infrastructure and Environment”

Environmental prioritiesWater and sewage managementWaste managementEcological safetyAdjusting companies to environmental standards Wildlife protection and ecological restoration

CF and ERDF budget for environmental priorities: 4,2 bln EUR

THE ECOFUND FOUNDATION

Established in 1992 Administering the funds from Polish debt-for-environment swap schemeMoney derived from the conversion of a part of the foreign debt of Poland into a fund intended to support environmental protection projects Agreements with USA, France, Switzerland, Italy, and Norway.

Priority environmental protection sectors of the EcoFund

1. Reduction of the transboundary transport of sulfur dioxide and nitrogen oxides and elimination of the low sources of such emissions (air protection(air protection);

2. Reduction of the pollutant inflow to the Baltic Sea and protection of drinking water resources ((water protectionwater protection);

3. Reduction of the emissions of gases that cause global climate changes (climate (climate protectionprotection);

4. Biological diversity protection (nature (nature protectionprotection); and

5. Waste management and contaminated soil reclamation (waste management(waste management).

Revenue

1992 - 2005, the receipts from the Polish-debt-for-environment swap scheme totaled about 400 million US dollars ;

banking operations and donations.

020406080

100120140160180200

Year

mill

ion

PLN

Receipts from bankingtransactions

Receipts from thedebt-for-environmentswap

Providing GrantsThe average amount of a grant PLN 1.6 million; Average grant covers 21% of the project cost

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

I II III IV V

Sectors

Grant amount [thousand PLN]

0

10

20

30

40

50

60

Average share of a grant in project cost

[%]

Average grant amount[thousand PLN]Average share of a grant inproject cost [%]

Competitions announced:

energy savings in municipal heating systems; nature protection in landscape parks; increasing the small retention in forests; protection of the declining species of flora and fauna; protection of water and marshland areas; protection of the avian areas of the NATURA 2000 EU Nature Conservation Network in Poland

Subsidy conditions-No co-finance of EU Cohesion Fund, Integrated Operational Program for Regional Development, EEA (Norwegian Fund). -Technology transfer promoted from USA, Switzerland, Norway and/or European Union Countries;-Advance payments available - subject to negotiation-Minimum amount of grant = PLN 50 000

For typical technical non-commercial projects:For typical technical non-commercial projects:Entrepreneurs

Up to 30 Up to 30 %%

Self-governments

30- 60 30- 60 %%

Others Up to Up to 50%50%

“Fast path” grant awarding

Products of similar nature is generated, for instance:Solar collectorsSolar collectors; max grant/unit :1 000 PLZ; Annual limit: 10 000 000 PLZ; Grant limit of up to 40% of project costs

Wind power plantsWind power plants; max grant/unit: 700 000 PLZ; Annual limit: 35 000 000 PLZ; Grant limit of up to 15% of project costs

The grant limits in the competitions are individually specified in the announcements.

Innovatory projects

promotes the use of the most recent engineering achievements for environmental protection purposes.

The rules of the subsidizing are more favorable

The maximum share of a grant is raised by 10 % compared to grants for typical projects

No “fast path” awarding applies

No competition procedures applies

Thank you for your attention

Eniko ArtimProject manager

Environmental financing and economic instruments

Environmental Policy ProgrammeRegional Environmental Center for

Central and Eastern Europeeartim@rec.org