The National Fund of Environmental Protection and Water Management (NFEP&WM) which was established in 1989 as a result of the regime transformation in Poland, in cooperation with voivodeship funds for environmental protection and water management is the pillar of the Polish system of financing environmental protection. The basis of the National Fund’s operation as a State legal person is the Act on Environmental Protection Law.
The fund that is friendly to the environment and beneficiaries
The mission of the National Fund, according to the NFEP&WM Strategy for 2009-2012, is to financially support undertakings intended for environmental protection and respecting its value, on the basis of the principle of sustainable development included in the constitution. We participate in implementation of the environmental policy of Poland as a source of financing and cooperate, along with the Ministry of the Environment, with commissions of environmental protection at the Sejm and Senate. The National Fund and voivodeship funds provide financial support for projects which contribute to enforcement of Polish obligations resulting from the Accession Treaty and other EU directives. The National Fund also supports activities undertaken by the Minister of the Environment in the scope of meeting Polish obligations resulting from the Climate Convention, Biodiversity Convention, implementing the LIFE+ Financial Instrument, NATURA 2000 and environmental education. Implementing the motto “Fund friendly to beneficiaries”, we organise a series of trainings and "open days" for entities applying for financial support from both, the domestic and foreign financial sources.
Modern economic instruments
The source of the National Fund’s revenues are fees and penalties for economic use of the environment which are provided for in the Law on Environmental Protection, exploitation and concession fees collected by virtue of Geological and Mining Law, charges determined in the Water Law, Substitution fees and penalties originating in the Energy Law as well as fees stipulated in the Act on recycling of end-of life vehicles. The National Fund has also revenues to the “climate account” from selling the surplus of the Polish greenhouse gasses emission within the Green Investment Scheme (GIS). The National Fund has also a function of the National Operator of the Green Investment Scheme under the international emission trading. Since the main form of supporting activities are loans, the National Funds is a "renewable source of financing" for environmental protection. The effect of the “financial leverage” obtained through the inclusion in the cooperation with the National Fund of other financial entities (e.g. banks, voivodeship funds), means more available capital on the market of environmental protection and larger environmental and economic effects.
Structure of revenues of the National Fund in 2010
Financing projects concerning environmental protection and water management, the National Fund offers many economic instruments adjusted to a project and beneficiary’s possibilities, inter alia loans, subsidies, payments to interest of bank credits, payments to dismantling end of life vehicles, partial repayment of bank credit capital and payments to interest or purchase price of bonds.