1. w w w. n f o s i g w. g o v. p l Financing environmental protection: Polish experience Marcin Jamiokowski SMART GREEN BUSINESS FORUM Astana, May 21st 2014 The National Fund for Environmental Protection and Water Management 2. w w w. n f o s i g w. g o v. p l Agenda Brief history System National Fund Priorities Results Polish system = model solution 3. w w w. n f o s i g w. g o v. p l Brief history 1989: Political transformation "Round Table Agreement" 4. w w w. n f o s i g w. g o v. p l System 5. w w w. n f o s i g w. g o v. p l System - financing ENVIRONMENTAL PROTECTION 6. w w w. n f o s i g w. g o v. p l System - relations Enterprises Local Self-Government Environmental charges & fines 16 Regional Funds Env. Protection Law State budget ENVIRONMENTAL PROJECTS 7. w w w. n f o s i g w. g o v. p l National Fund Established in 1989 Legal personality 550 staff (>200 engineers) Worldwide unique solution 25 years experience in financing of environmental protection 8. w w w. n f o s i g w. g o v. p l National Funds Strengths Experience in use of financial tools including cooperation with commercial banks Highly qualified personnel & centre for excellence Long term strategy & flexibilty Close cooperation with the EU authorities and international financial organizations Extensive experience in administration of foreign funds Revolving financing system 9. w w w. n f o s i g w. g o v. p l National Fund revenue structure (2012) Fees and penalties for the use of environment (Environmental Protection Law) 17% Utility fees and concession fees 10% Fees resulting from the Act on recycling of end-of-life vehicles 15% Substitution fees and fines resulting from the Energy Law 31% Other contributions and fees 0,6% Other revenues 12% Revenues from the sale of the allocated GHG units 14% Subsidies from the State budget 0,4% 10. w w w. n f o s i g w. g o v. p l Funds disburstments State funds: EUR 8,05 billion EU funds: EUR 4,70 billion EUR million Total: EUR 12,75 billion 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 100 200 300 400 500 600 700 800 900 11. w w w. n f o s i g w. g o v. p l Financial engineering Revolving funds Financial leverage Synergy of actions Market stimulation 12. w w w. n f o s i g w. g o v. p l Portfolio Grants Loans (investment, bridge) Interest rate subsidies Capital investments & equity Interest rate or bonds price redemption subsidies Partial repayment of bank loan capital Partial loan redemption Project finance 13. w w w. n f o s i g w. g o v. p l Beneficiaries Municipalities Public institutions Enterprises NGOs Households Other 14. w w w. n f o s i g w. g o v. p l Priorities 20 Priority Programmes in 5 areas Protection & management of water resources Land protection & Waste management Multi-area Programmes (e.g. eco-innovations) Atmosphere protection Biodiversity & ecosystems protection 15. w w w. n f o s i g w. g o v. p l Selected results Ecological effects* unit of measure years 1990-2010 Increase of sewage treatment plant capacity m3/day 9 million Sewerage system km 300 thous. Waste mass recycled tons/year 1,7 million Reduction of CO2 emission tons/year 10 million *Cumulative effects from the projects financed by the National Fund & Regional Funds 16. w w w. n f o s i g w. g o v. p l GDP vs CO2 emission & energy cons. 1988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012 0 50 100 150 200 250 GDP CO2 emission Energy consumption % Source: Prof. Maciej Nowicki (2014). 25 Years of environmental protection in democratic Poland 17. w w w. n f o s i g w. g o v. p l Sewage treatment (1998 2012) Source: Prof. Maciej Nowicki (2014). 25 Years of environmental protection in democratic Poland Treated effluents Biologically Untreated sewage Chemically Mechanically 18. w w w. n f o s i g w. g o v. p l Wastes generated & landfilled (1988 2012) Source: Prof. Maciej Nowicki (2014). 25 Years of environmental protection in democratic Poland Wastes landfilled Wastes generated 19. w w w. n f o s i g w. g o v. p l Projects examples 20. w w w. n f o s i g w. g o v. p l Cleaner water for Warsaw Peewit wastewater treatment plant Strategic goals: - proper quality of drinking water - 100% treatment of municipal wastewater Eligible costs - EUR 750 million Support: EUR 410 million 21. w w w. n f o s i g w. g o v. p l Flood prevention winna Porba Reservoir Strategic goals: - flood prevention - hydropower (4,4 MW) Eligible costs - EUR 393 million Support: EUR 58 mln 22. w w w. n f o s i g w. g o v. p l Cleaner Air agisza Power Plant NFEP&WM co-finansed building of the worlds first energy block with a once-through combustion boiler CFB for supercritical steam parameters (275 bars, 580C) Total investment cost - EUR 460 million Support EUR 86 million 23. w w w. n f o s i g w. g o v. p l Conclusions BENEFICIARY FRIENDLY RENEWABLE SOURCE OF FINANCING FLEXIBLE & EFFICIENT UNIQUE SOLUTION 24. w w w. n f o s i g w. g o v. p l Thank you! Marcin Jamiokowski m.jamiolkowski@nfosigw.gov.pl Industrial Project Department NFEP&WM www.nfosigw.gov.pl