The European Investment Bank (EIB) is lending EUR 50 million to co-finance projects promoting Poland’s objectives of increased use of renewable energy and improved energy efficiency.

This funding will support increased electricity production and heat generation from biomass and biogas-fired plants, while improving energy efficiency through the refurbishment of public buildings in Poland. This will contribute to the implementation of Greening Plans developed by the National Fund for Environmental Protection and Water Management (NFOSIGW) in conjunction with Green Investment Schemes that Poland has signed with Spain and Ireland, facilitated by the Multilateral Carbon Credit Fund.

Green Investment Schemes enable Poland to invest the proceeds of the sale of carbon emission credits in greenhouse gas mitigation activities by channelling grants towards projects forming part of Greening Plans. Projects are selected by NFOSIGW on the basis of a competitive selection procedure.

The operational rules of the Polish GIS are based on the Act on management of GHG emissions and emissions of other substances, in effect from September 2009. The responsibility of the GIS management is assigned to the GIS Operator, whose function is performed by the National Fund for Environmental Protection and Water Management, a governmental agency with more than 20 years of experience in providing public support to projects and activities in the area of environmental protection. The GIS Operator’s role is to supervise the implementation of Greening Programmes to evaluate the environmental impacts achieved. Mandatory monitoring, reporting and verification of GHG emission reductions by GIS beneficiaries and the Operator are enshrined in the legislation.

Prof. Andrzej Kraszewski, Minister of Environment of the Republic of Poland, said: “The Polish Green Investment Scheme created by the Ministry of Environment together with affiliated partners will allow Poland to meet CO2 reduction targets and achieve the ambitious EU climate policy objectives. Cooperation with – and support from – the EIB makes this effort more effective.“

Mrs. Marta Gajęcka, EIB Vice-President responsible for lending in Central Europe, including Poland, stated: “I appreciate very much that EIB funds, in combination with grant support from Spain and Ireland, will help implement projects focused on cutting CO2 emissions and increasing the use of renewable energy resources – both necessary for meeting Poland’s ambitious environmental commitments.”

The current loan is a further example of the cooperation between the European Investment Bank and NFOSIGW. Last year the Bank signed a EUR 121 million loan to NFOSIGW to support National Environmental Protection Fund co-financing of projects in the water and sanitation sectors.

Background:

The mission of the EIB, the European Union’s bank, is to contribute to the integration, balanced development and economic and social cohesion of the EU Member States by financing sound investment.

One of the EIB’s priority objectives is protection and improvement of the environment and mitigation against climate change. In 2009 the EIB lent a total of EUR 16.9 billion for projects supporting the fight against climate change, a 73% increase from 2008. These activities focus on renewable energy, energy efficiency, sustainable transport, climate change adaptation and innovation. The European Bank for Reconstruction and Development and the European Investment Bank established the Multilateral Carbon Credit Fund (MCCF) as a key instrument for combating climate change. Fully subscribed, with EUR 208.5 million in commitments, the MCCF is one of the few carbon funds dedicated to countries from Central Europe to Central Asia.