Poland faces a convergence of challenges in the energy and infrastructure sectors. While the Clean Air program grapples with the specter of losing financial liquidity with only PLN 500 million in reserves, the Ministry of Funds is fighting for resources from the EU cohesion policy. Simultaneously, the green light has been given to one of the most expensive road investments in the country's history – the Western Szczecin Bypass with a record-long tunnel, estimated to cost nearly PLN 8 billion.

Threat to Clean Air Program Liquidity

Only PLN 500 million remains in the funds' accounts, which, given the huge payout pace from 2024, creates a risk of suspending the program.

Green Light for Szczecin Bypass

The investment worth nearly PLN 8 billion with the longest tunnel in Poland enters the implementation phase after tender objections were dismissed.

Energy Tariff Reform

The government plans to modify the way electricity rates are calculated to force companies to lower bills for citizens.

Costs of the ETS2 System

The upcoming EU tax on emissions from buildings and transport raises concerns about a drastic increase in living costs for millions of Poles.

The situation surrounding the government's flagship thermal modernization program is becoming increasingly tense. Despite assurances from the National Fund for Environmental Protection and Water Management (NFOŚiGW) about record payouts of around PLN 12 billion since the beginning of 2024, regional funds report a drastic drop in available funds. Currently, only PLN 500 million remains in the accounts of the Regional Funds for Environmental Protection and Water Management (WFOŚiGW), raising real concerns about halting subsidies for thousands of households. The situation is complicated by the entry into force of the EU's ETS2 system, which will drastically increase the costs of heating with coal and gas. Program beneficiaries can count on free legal advice, but experts warn that without systemic changes in the certification of funds from the FEnIKS fund, the program faces financial collapse. In the macroeconomic area, the government is intensively seeking ways to lower energy prices for end consumers. The Ministry of Climate is considering changing the methodology for calculating tariffs, aiming to limit so-called excess profits of energy companies. At the same time, criticism is growing of the capacity market, which according to some analysts generates unjustified costs for household budgets under the pretext of energy security. The Clean Air program, launched in 2018, is the largest ecological project in Poland's history, aimed at replacing 3 million old inefficient boilers by the end of this decade.Breakthrough information is coming from the road infrastructure sector. After appeals in tenders were dismissed, the path has been opened to sign contracts for the construction of the Western Szczecin Bypass. The investment worth nearly PLN 8 billion includes the construction of the longest tunnel in Poland, which will be built using the TBM method under the bed of the Oder River. This project is crucial for relieving the center of Szczecin and connecting the chemical plants in Police with the expressway network. Deputy Minister of Funds Jan Szyszko has already invited the "group of friends of cohesion" to an April meeting in Warsaw to defend the financing of similar projects in the new EU budget for 2028–2034. „Od początku 2024 r. w ramach programu Czyste Powietrze wypłacono rekordowe 12 mld zł, co dowodzi ogromnej skali zainteresowania Polaków termomodernizacją.” (Since the beginning of 2024, a record PLN 12 billion has been paid out under the Clean Air program, demonstrating the enormous scale of Poles' interest in thermal modernization.) — NFOŚiGW

Mentioned People

  • Jan Szyszko — Deputy Minister of Funds and Regional Policy, organizer of the group of friends of cohesion summit.