Overview of Funds for Environment in Poland

1. Overview of Funds for Environment in Poland Fundetec Public Funding Workshop Eniko Artim Project Manager REC Eartim@rec.org

2. Financing Environmental technologies in Poland 2007-2013 • National Fund for Environmental Protection and Water Management • EkoFund • Bank Ochrony Środowiska: • preferential pro-ecological credits • eg. for investments • in theagriculture production. • Bank Gospodarstwa Krajowego: technological credit to purchase new technology or modernizeown one

3. National Fund for Environmental Protection and Water Management Information received from : Mr. Piotr Ruciński

4. Environmental protection and watermanagement funds were established in 1989 by the Environmental Protection Act National Fund 16 provincial funds 373 county funds 2489 communal funds

5. Sources of financing environmental protection and water management in 2004

6. Environmental funds` revenues come from: • Fees for exploitation of the environment • Penalties for exceeding pollution limits • Fees and penalties are collected byprovintial authorities and then distributed among the funds.

7. Forms of financing environmental protection • Loan financing (loans, credit lines) • Grant financing (grants and subsidies to commercial credits) • Capital investments

8. Receipts and expenses of the National Fund in 2005in mln EUR

9. Supported areas • Water protection and water management – 41% • Air protection – 17% • Land protection – 6% • Nature protection and forestry – 4% • National environment monitoring – 7% • Avoidance and liquidation of serious failures – 3% • Geology – 5% • Mining – 5% • Ecological education – 2% • Other – 10%

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

11. 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)

12. Challenge for period 2007-2013 - Programme „Infrastructure and Environment” • Environmental priorities • Water and sewage management • Waste management • Ecological safety • Adjusting companies to environmental standards • Wildlife protection and ecological restoration • CF and ERDF budget for environmental • priorities: 4,2 bln EUR

13. THE ECOFUND FOUNDATION • Established in 1992 • Administering the funds from Polish debt-for-environment swap scheme • Money 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.

14. Priority environmental protection sectors of the EcoFund • Reduction of the transboundary transport of sulfur dioxide and nitrogen oxides and elimination of the low sources of such emissions (air protection); • Reduction of the pollutant inflow to the Baltic Sea and protection of drinking water resources (water protection); • Reduction of the emissions of gases that cause global climate changes (climate protection); • Biological diversity protection (nature protection); and • Waste management and contaminated soil reclamation (waste management).

15. Revenue • 1992 - 2005, the receipts from the Polish-debt-for-environment swap scheme totaled about 400 million US dollars ; • banking operations and donations.

16. Providing Grants • The average amount of a grant PLN 1.6 million; Average grant covers 21% of the project cost

17. 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

18. 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:

19. “Fast path” grant awarding • Products of similar nature is generated, for instance: • Solar collectors; max grant/unit :1 000 PLZ; Annual limit: 10 000 000 PLZ; Grant limit of up to 40% of project costs • Wind 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.

20. 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

21. Thank you for your attention Eniko Artim Project manager Environmental financing and economic instruments Environmental Policy Programme Regional Environmental Center for Central and Eastern Europe eartim@rec.org