1. w w w. n f o s i g w. g o v. p l Financing environmental protection: Polish experience Marcin Jamiołkowski 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 Fund’s 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

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 measureyears 1990-2010 Increase of sewage treatment plant capacitym3/day9 million Sewerage systemkm300 thous. Waste mass recycledtons/year1,7 million Reduction of CO2 emissiontons/year10 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. % 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 ‘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 Cleaner Air ‘Łagisza’ Power Plant NFEP&WM co-finansed building of the world’s first energy block with a once-through combustion boiler CFB for supercritical steam parameters (275 bars, 580ºC) Total investment cost - EUR 460 million Support – EUR 86 million ‘Łagisza’ Power Plant NFEP&WM co-finansed building of the world’s first energy block with a once-through combustion boiler CFB for supercritical steam parameters (275 bars, 580ºC) Total investment cost - EUR 460 million Support – EUR 86 million

22. 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

23. w w w. n f o s i g w. g o v. p l Thank you! Marcin Jamiołkowski m.jamiolkowski@nfosigw.gov.pl Industrial Project Department NFEP&WM www.nfosigw.gov.pl