The European Bank for Reconstruction and Improvement (EBRD) and Poland’s main lender BNP Paribas Bank Polska (BNPPL) have agreed a landmark scheme to improve the power effectivity of Polish houses and minimize their power bills, the EBRD stated on December 7.
Poland has one of the largest housing shares in Europe (virtually 13.9 million residential models) however around 72% of the full was constructed utilizing pre-1989 technologies. Round 70% of single-family houses within the country use coal for heating. Coal powers the bulk of electricity (90%) generated in Poland. The country additionally has one of many highest per capita rates of coal consumption on the planet.
The agreement between the two monetary institutions will shape their joint strategy to power effectivity and green transition in Poland for years to return and will showcase the advantages of residential power efficiency as a extra sustainable various to traditional fossil fuels, the EBRD stated.
The EBRD is extending an area foreign money mortgage of PLN 450 million (around €100 million equal) to BNPPL for on-lending to non-public individuals prepared to spend money on energy-saving solutions and high-performing technologies in residential buildings across the country.
BNPPL has committed to providing its personal funds value PLN 225 million (round €50 million equivalent) to further help the scheme.
Personal individuals can borrow funds to exchange coal-fired boilers with warmth pumps, set up thermal insulation and implement a variety of different efficiency enhancements. House owners of single-family houses, which characterize more than 50% of Poland’s residential building stock, are anticipated to be among the many foremost beneficiaries of the scheme.
The joint BNPPL-EBRD initiative will assist handle points such as the excessive power and carbon intensity of Poland’s residential housing sector, and help the country in shifting in the direction of a low-carbon financial system by decreasing its annual power consumption and greenhouse fuel emissions. It can also contribute to goals of the Clean Air Precedence Programme (CAPP), launched by the Polish government in 2018 and designed to enhance air quality within the country.
As well as, the funds are expected to improve the resilience of BNPPL by supporting the gradual build-up of its minimum required own funds and eligible liabilities (MREL) as per the EU bank restoration and determination directive. This may also be Poland’s first senior non-preferred (SNP) debt financing.
Underneath the scheme, potential debtors will be capable of determine typical inexperienced technologies out there in Poland via a listing of eligible local and international technologies, which are aligned with the CAPP.