By providing funding towards reducing pollution emissions as one of its priority activities, the Fund has been an effective tool in implementing the country’s environmental policy for nearly 20 years now. The Fund’s money goes to projects designed to improve fuel quality, build installations reducing pollution emissions from flue gases, and deploy new technologies to reduce energy consumption and cut on emissions of carbon dioxide, sulphur dioxide and nitrogen oxides. The Fund also finances projects associated with the use of environment-friendly energy sources.
The fact that the Fund finances air protection projects offers a guarantee that Poland will be able to meet its international obligations in climate protection. As a country, we have great achievements in this respect and are waiting for the United Nations climate change conference (COP 14), to be held in Poznań on December 1-12 this year, with a hope for success in achieving strategic international objectives in climate protection.
Polish Joint Implementation (JI) Secretariat
Poland, as a party to the United Nations Framework Convention on Climate Change, has committed itself – by ratifying the convention in 1994 – to stabilise its greenhouse gas emissions. Under the Kyoto Protocol, in the years 2008-2012 Poland is required to reduce greenhouse gas emissions by an additional 6% compared to the base year of 1998. Poland ratified the Kyoto Protocol in 2002 and the Protocol entered into force in 2005. The Protocol defines three mechanisms designed to support reductions in greenhouse gas emissions: emissions trading, the clean development mechanism and joint implementation mechanism.
The Polish JI Secretariat operating at the National Fund for Environmental Protection and Water Management since 1996 is one of the first organisations of this kind in Europe. It provides services to Polish and foreign partners who have submitted a JI project, analyses and reviews the projects and submits an opinion needed for project approval to the ministry of the environment via the Ministry’s Climate Change and Sustainable Development Department.
The idea of the JI mechanism is as follows: Poland takes part in JI undertakings as a host country because costs involved in reducing greenhouse gas emissions in Poland are lower than related costs in the investors’ countries of origin. Interest in the JI concept results from it offering the host country access to modern technologies and capital. Since emission reductions are desirable globally and it does not matter where exactly they are achieved, the investor country through its companies and in conjunction with Polish businesses carries out a JI project in Poland, after which the host country transfers Emission Reduction Units (ERU) from its pool of emissions credits to the investor country. The transfer has to be approved by the Polish minister of the environment and the respective body in the investor’s country.
Under the auspices of the minister of the environment
The minister of the environment approves JI projects. The applications are prepared in two stages. First, a Project Idea Note (PIN) is submitted to receive a letter of support from the minister of the environment. Then, a detailed Project Design Document (PDD) is submitted in order for the investor to receive a letter of approval from the minister. As a result, JI projects are also evaluated in two stages by the JI Secretariat. The projects are funded by foreign investors, their governments, Carbon Funds, Polish partners and the National Fund for Environmental Protection and Water Management. So far around PLN260 million has been assigned for this purpose. The projects generate ERUs, which have a market value and can be traded to generate profit.
JI projects include:
– projects associated with the development of renewable energy sources;
– measures towards energy efficiency;
– development of technology;
– measures towards acquiring modern equipment.
JI projects are at different stages of preparation and execution. The minister of the environment has issued letters of approval for nine projects and letters of support for 11 projects. Around 50 projects are waiting for the minister’s decision.
The basic goal of every JI project is to reduce greenhouse gas emissions. In the years 2008-2012 total reductions in carbon dioxide emissions resulting from all JI projects already completed and now under implementation are supposed to reach around 12 million tonnes.
In conjunction with a foreign partner
By implementing a JI project in Poland in conjunction with a foreign partner, a Polish company spends less money to achieve specific environmental effects and can sell a certain amount of ERUs in exchange for total or partial funding for the project. The governments of Finland, Canada, Denmark, Baltic countries and the International Bank for Reconstruction and Development - World Bank (Prototype Carbon Fund) have expressed their will in agreements and the Memorandum of Understanding to jointly pursue the goal of the climate convention through the JI mechanism. Poland also takes an active part in international programmes and funds dealing with the implementation of JI projects, like for example the Dutch ERUPT programme.
The following projects have been carried out in the pilot phase of the JI mechanism under Article 6 of the Kyoto Convention - Activities Implemented Jointly (AIJ):
– Polish-Dutch project for combined heat and power generation in Szamotuły (completed in 2000);
– Polish-Dutch project to replace coal with natural gas and modernise 16 boiler plants (completed in 2000);
– Polish-Norwegian project to replace coal with natural gas in around 30 non-industrial boiler plants in Poland (completed in 2002).
The following JI projects have been approved for implementation:
– Polish-Dutch project to use biomass from municipal green areas for heating purposes in Jelenia Góra (completed in 2000);
– Polish-Canadian project to build a water power station on the Bóbr river in Leszno Górne (completed in 2001);
– Polish-Danish project to build a 30MW wind farm in Zagórze (completed in 2002);
– Polish-Dutch project to recover landfill gas in Konin;
– Polish-Danish project to use landfill gas and sludge in Zakopane;
– Project for a geothermal plant in Stargard Szczeciński (carried out in 2005 within the prototype carbon fund);
– Polish-Danish project to use landfill gas in Warmińsko-Mazurskie province (under implementation);
– Polish-Danish project for the 30.6MW Lake Ostrowo wind farm near the town of Wolin (completed).
Additionally, a number of prospective JI projects are at different stages of preparation, including projects at very early stages and advanced projects which only need approval to be started. As regards the early stage of preparation, the Ministry of the Environment has issued some 30 letters of support so far. The number is growing steadily as new proposals for JI projects are submitted.
The reference list of JI projects handled by the National Fund for Environmental Protection and Water Management includes ventures involving investors from Britain (for example, a project to reduce dinitrogen monoxide emissions from the Anwil SA and Kędzierzyn SA works), Japan (a project to reduce dinitrogen monoxide emissions from the Tarnów-Mościce works), Denmark (a project to use landfill gas in Białystok, Łubna and Sosnowiec; Lake Ostrowo, Kamieńsk, Duninowo, Łebcz and Zajączkowo wind farms), Holland (wind farms in Tymień, Zagórze and Puck), Spain (wind farms in the Carpathian Mountains), Germany (the use of methane from Upper Silesian coal mines).
Benefits for both sides
The JI mechanism is an effective tool for implementing investment projects which contribute to a reduction in greenhouse gas emissions but whose economic viability is poor and which are difficult technologically. The JI mechanism enables the implementation of projects which would be virtually unfeasible if they had to be carried out by the Polish side alone. The JI mechanism offers considerable benefits to both Poland and its foreign partners. These include:
– improved economic effectiveness of reductions in greenhouse gas emissions;
– transfer of technology and know-how;
– transfer of capital;
– development of labour markets;
– considerable environmental and economic benefits without the need to bear the full costs involved in project preparation and implementation;
– development of international relations between clients, stakeholders and politicians.
As Poland pursues active policy in the area of climate and air protection, every year more and more foreign companies are interested in the Polish market and work with Polish partners. The international climate conference in Poznań and related events will provide an opportunity for financing institutions and companies operating on the environment protection market to exchange experience. One of the cooperating institutions is the National Fund for Environmental Protection and Water Management, which offers wide-ranging financial assistance in the sphere of environmental protection and renewable energy sources. With its professional staff and long experience in handling projects partially funded from foreign sources, the Fund is a credible and experienced partner.
For more information and to establish direct contact with us visit our website: www.nfosgw.gov.pl.