The signed loan agreement 'Clean Air' Programme: Ecological Heating Sources in the Residential Sector' (MBOiR loan no. 9310-PL) provides Poland with financial support and advisory support from World Bank experts for the effective implementation and further development of the 'Clean Air' Priority Programme (PPCP).

The World Bank loan of EUR 250 million is granted to the Polish side for up to 5 years (2022-2027). The loan will be credited to the state budget for lost tax revenues under the thermo-modernisation allowance complementary to the PPCP. Tranches of the loan will be disbursed to the Polish side as the PPCP implementation progresses. An element of the loan is the World Bank's advice for tailoring the PPCP to the needs of beneficiaries in Poland.

The Minister in charge of the Budget (Ministry of Finance), in agreement with the Minister in charge of the Climate (Ministry of Climate and Environment) and NFOŚiGW (National Fund for Environmental Protection and Water Management) experts, was responsible for conducting negotiations on agreeing on the content of the loan agreement with World Bank representatives.

The World Bank loan agreement was signed conditional on securing EU funding, particularly the National Reconstruction Plan (KPO). In the current situation, there are no longer any obstacles to finalising the agreement

– informs Paulina Hennig-Kloska, Minister of Climate and Environment.

The 'Clean Air' Programme is one of the most demanding priority programmes implemented by NFOŚiGW. On the one hand, it has precisely defined objectives and is highly developed in terms of its offer and the organisation of the support system. On the other hand, it requires a constant response to the external situation, the dynamic market for prices and services and the new needs of target groups - the beneficiaries of this programme. Co-operation with the World Bank provides an opportunity to exchange the Bank's experience from activities in this area in other countries and NFOŚiGW's experience from the implementation of the 'Clean Air' Programme in Poland to date

– adds Minister Paulina Hennig-Kloska.

The technical assistance and ongoing support from the World Bank offered and implemented for the programme from as early as 2020 is of particular value to the NFOŚiGW. Experts from the World Bank and NFOŚiGW monitor the progress of the programme's implementation and work together to address challenges that arise during the implementation of this programme, which is essential for improving air quality in Poland. Together, we are leaning into further needs for changes to the programme to make it most effective and efficient. The World Bank actively participates, among others, in a new pilot project of the so-called operators, who provide permanent and comprehensive support to the programme beneficiary, especially those with the lowest income, lacking credit and organisational capacity to undertake investments in thermal modernisation of their building and replacement of the heat source

– says Dorota Zawadzka-Stępniak, President of the National Fund for Environmental Protection and Water Management.

The World Bank is supporting Poland in its efforts to improve air quality and increase energy efficiency by switching to cleaner and more sustainable residential heating systems. We are pleased to provide substantive support to the 'Clean Air' Programme and to work towards increasing its inclusiveness. The launch of the financial support makes our cooperation even closer: together, we are pursuing the mission set by the World Bank – eradicating poverty on a livable planet

– claims Marina Wes, World Bank Director for the European Union.

The indicators stipulated in the loan agreement, which condition the disbursement of subsequent tranches of the loan, reflect the activities of the NFOŚiGW, a key player in the development of the PPCP. The NFOŚiGW has been instrumental in achieving these indicators to a large extent in 2021-2023, thereby making the disbursement of the first tranche of the loan possible as early as 2024. This will be confirmed by an external verifier selected by the Ministry of Climate and Environment, ensuring the progress of PPCP implementation.