Poland implements sustainable development policy, starting with social and economic
transformations when the first Polish ?National Environmental Policy? was based on the
principle of sustainable development. This Policy, which was approved by the Parliament of the
Republic of Poland in 1991, played a principal role in the shaping of the present Polish system of
environmental protection based on the principles of a market-based economy. This was the first
strategic action programme of this type in Poland and the countries of Central and Eastern
Europe. It was also one of the earliest programmes in the world to treat environmental
protection in a comprehensive manner, taking into account all the most important elements of
the environment and the most significant pollution sources in the most important sectors, with
reference to the principles of sustainable development.
The need to comply with the requirements of the idea of sustainable development is confirmed by
Article 5 of the Constitution of the Republic of Poland, as adopted by the National Assembly in
1997.
The first National Environmental Policy set out the major directions and priorities of actions,
including the modernisation of environmental law, the introduction of new economic instruments
and the updating the existing ones, the establishment of new institutions for the monitoring of the
environment and the control of the implementation of environmental law, the creation of
institutions to finance actions in environmental protection. The tasks adopted were consistently
carried out, leading to the significant improvement of the environmental quality in Poland, to the
strengthening and expansion of environmental law, as well as the implementation of new and
modern instruments for its enforcement. The basic aim of the action is to ensure the environmental
security of the present and future generations through the adoption of such a model of the
development of the country which ensures the effective regulation and control of the use of the
environment, thus making sure that the type and magnitude of such use would not pose risks for the
quality and sustainability of natural resources, without causing social tensions and conflicts.
It is extremely difficult to identify proper tools for measurement of political commitment
which would be suitable for all countries ? mostly due to differences among the countries and
specific national circumstances. High-level policy announcements, financial allocations (not
necessarily budgetary ones due to different systems established in specific countries),
institutional arrangements, level of media interest, level of public awareness and intensity of
dialogue with stakeholders seem to be a part of flexible measurement tool-mix.

Poland fulfils the recommendations ensuing from the European Union Strategy for Sustainable
Development. This Strategy covers the most important economic, social and environmental
sectors and provides a linkage to all the EU political documents and thematic strategies, including
documents of horizontal nature; at the same time, ensuring that it is complementary to, and
compatible with, other Community strategies.
The EU SDS Strategy has a real impact on the measures taken and carried out in seven key
sectors: climate and energy, sustainable transport, sustainable production and consumption
patterns, conservation and management of natural resources, public health, social issues,
demography and migration, and the reduction of poverty in the world. SDS EU also addresses
horizontal issues, such as education and training, scientific research, financing and economic
instruments.

? legislation
? policy strategic documents
? public campaigns
? dialogue with stakeholders and society

? quality of water resources
? natural environment protection including biodiversity
? air quality protection
? energy efficiency
The political commitment was driven by the overall development goals in the difficult process
towards market-oriented economy, where decoupling of economy growth/recovery from
environmental impacts was given highest priority.
Since 1989 positive trends in the development of the country could be seen, as evidenced, inter alia,
by: 1) a decrease in the energy- and raw material-intensity of the economy as a result of the overall
improvement of the micro-economic optimal management. In the Polish conditions, the potential
positive environmental and economic effects of this decrease are particularly important in the light
of the unfavourable structure of the primary and final energy balances ? with the domination of
solid fuels in the production of basic energy types, 2) the improvement of economic viability and
environmental efficiency of the different instruments of environmental protection policy, 3) the
privatisation of state-owned enterprises and the growing share of the private sector in the economy,
4) the limitation of adverse environmental impacts of development processes, causing a reduction in
the emission levels of air, water and land surface pollutants.
In implementing the principle of sustainable development, Poland achieved progress in the
protection and improvement of the state of the environment which could not be conceived
beforeThe consumption of mineral raw materials was reduced and the surface area of protected
sites increased. The systematic improvement of the status in the field of environmental
protection which could be observed in Poland in a dozen or so recent years was the result of
implementation of the national environmental policy, the basic instrument of which is the
effectively functioning integrated system of charges for the use of the environment and the
financing of environmental protection, mainly based on environmental funds.

The most spectacular example of strong political engagement is climate change, where Poland as
the member of the EU has committed to ambitious goals (mitigation and financing) unilaterally
(20% GHG emission reduction by 2020 within the EU Climate-Energy Package, together with
reduction in energy consumption by 20% of projected 2020 levels and increase the share in
renewable energy to 15% of gross final energy consumption), participation in fast-start financial
mechanism in 2010-2012 contained in the Copenhagen Accord aiming at assisting developing
countries in mitigation and adaptation efforts).
In December 2009, at the European Council, Prime Minister Donald Tusk declared on behalf
of Poland an equivalent of 10% of the share of proceeds from the sale of AAUs, as the Polish
contribution to the EU ?fast start financing? in the years 2010 to 2012.
Currently, 10% from the sale of AAUs is around 8 million EUR. If Poland succeeds in selling
the planned quantity of AAUs by 2012,this would be the amount of 50 to 70 million EUR.
Poland has the opportunity to use this mechanism in support of projects using Polish
environmental technologies or implemented by Polish entities in the priority countries of the
Eastern Partnership. As a potential audience of Polish aid climate among indicated countries
are Armenia, Azerbaijan, Georgia, Moldova, Kazakhstan and Turkmenistan.

? energy efficiency
? efficient use of available resources (closed loop concept)
? renewable energy sources
? more sustainable consumption and production patterns
Poland?s membership in the European Union will very substantially determine the further pace of
the development of the country. Indeed, there is a very large potential for the better use of
Poland?s presence in the EU to support the combat against challenges, mainly through
influencing regional policies shaped at the European level and through the use of the effects of
the membership to support the actions carried out at the national level. In particular, Poland
must face social, environmental and energy-related challenges, and strengthen the
competitiveness of its economy, in order to cope with the globalisation processes and to improve
social, economic and territorial cohesion, which affects the citizens? feeling of social safety,
particularly at the times of a crisis. Economic growth and employment still continue to be the
leading objectives, and so are the actions to overcome crisis-related effects. The creation of
permanent foundations for growth which would make it possible to respond to the global
challenges of sustainable development becomes a key issue. All these actions have a common
long-term target, i.e. to improve the quality of life of Poland?s population.
Poland sees its forthcoming EU presidency in the second half of 2011 as a big challenge and a
good opportunity to promote its achievements in environmental protection and sustainable
development, including decoupling economic growth from emissions growth, establishing
appropriate policies and legislation and the introduction of environmentally friendly technologies,
and gradual introduction of green economy.
UNFCCC COP16 will be held during the Polish presidency of the EU, therefore, Poland has
undertaken the challenge of managing the EU27 preparations for the negotiations within the
Convention, which should lead to a new global agreement.
Within the framework of the abovementioned actions, it is important to emphasise the role of
climate policy in the national environmental policy, the strategic goal of which is to make a Polish
contribution to the efforts of the international community for the protection of the global climate
through the implementation of the principles of sustainable development.
It is worthwhile to note the integrated approach to the issues of climate change, energy and
sustainable development, as well as the gradual shift of economies to low-emission energy
sources. There is still a large reduction potential in the measures to improve energy efficiency,
energy saving, sustainable construction, including thermal modernisation, thermal insulation,
labelling of energy-saving equipment, and in the transport sector. Energy from renewable sources
will have an increasingly large share in energy generation. Therefore, the potential offered by the
existing technologies and the research on new technologies should be fully used.
The key issue for Poland is the recognition of the use of coal as the main fuel for energy
generation and Poland is interested in its use in the future (given its significance in terms of the
energy security of the country and the maintenance of its substantial independence in respect of
fuel supply), bearing in mind the EU Energy Strategy and the shift of economies to low-emission
ones (as almost 90% electricity is produced from coal).
The energy and climate package sets the so called ?20-20-20? targets for the whole EU:
reducing GHG emissions by 20% (or even by 30% if other developed countries commit to
comparable reductions under a new global climate change agreement), increasing renewables?
share in energy supply to 20% and improving energy efficiency by 20% by 2020. This
translates into the following targets for Poland:
- Limit GHG emissions in sectors not covered by the EU ETS to 14% above the 2005
level.
- Reduce energy consumption by 20% of projected 2020 levels.
- Increase the share of renewable energy to 15% of gross final energy consumption.
The GHG emissions inventory results included in the Poland?s yearly inventory report
showed that in 19882007
GHG emissions in Poland fell by 29.3%, with a drop in emissions of
carbon dioxide by 30.1%, methane by 31.5%, and nitrous oxide by 26 , 1%.
Particularly dramatic drop in greenhouse gas emissions was seen in the years 1988-1990, which was
caused by significant changes in the Polish economy, particularly in heavy industry.
This was the result of the begun of the political transition from centrally planned economy to a market
economy. Decrease in emission lasted until 1993, after which emissions began to rise, reaching peak
in 1996, which was the result of, among others, the modernization of heavy industry, as well as the
dynamic economic growth. The next year was characterized by a slow decline in emissions up to
2002, accompanied by programs and activities for energy efficiency. After 2002 there was a slight
increase in emissions, which lasted until 2007, stimulated lively economic development.
Poland, in its Vth assessment report to the Conference of the Parties to the UNFCCC
convention, by comparing the projected emissions in the period 2015-2030 with data for the base
year 1988, showed a drop in emissions by over 30% of the total for all sectors, with the largest
reduction in the sectors of Energy and Agriculture.
The national target for reducing emissions of greenhouse gases included in Annex A to the
Kyoto Protocol (6% in the period 2008-2012 compared to base year 1988), remains unchanged and
will be achieved by Poland.
A commitment to reduce greenhouse gas emissions by 20% in 2020 compared to 1990, adopted in
2007 under the EU package on energy and climate will also be completed.

The UNCSD should provide a general guidance and assistance, in particular for developing
countries, identifying long-term goals and establishing also an institutional framework for
assistance measures.
At the same time, it is important to emphasise the clear need to enhance the complementarity
and coherence of the policy pursued.

In general, there is a broad consensus that all three pillars are complementary and can not be
separated. In difficult times like the latest economic and financial crisis followed by
comprehensive budgetary reforms, the possible trade-offs will be always a part of strategic
discussions. Such discussions may not necessarily lead to real trade-offs, but they are confronted
with other, more sustainable ideas and concepts with a view to make the right choices.

The change of the political system in the early 1990s transformed a centrally planned and
managed economy into a system based on the free-market rules. Fundamental changes were
made in the economy, including the liberalisation of trade and prices, the launch of the
privatisation process, a tax and fiscal reform and the stabilisation of monetary relations.
Moreover, a legal framework was created for a market-based economy: new principles of the
functioning of economic operators and a free flow of capital and, at the same time, the process of
building modern institutions for the protection of the market, consumers and competition began.
These activities took to a large extent into account the experiences and specific legal solutions
from the European Union and the United Nations.
In the timeframe until 2030, the key challenges of importance for Poland are projected to
include: growth and competitiveness, the demographic situation, high vocational activity and
adaptability, labour resources, adequate infrastructure potential, climate and energy security,
knowledge-based economy and the development of intellectual capital, solidarity and regional
cohesion, the improvement of social cohesion, an efficient State and the growth of social capital.
An example of relevant documents:
FIFTH NATIONAL COMMUNICATION TO THE CONFERENCE OF THE PARTIES TO THE UNITED
NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE
http://mos.gov.pl/g2/big/2010_03/c0a7a12f566785012e1282bb3f3d3154.pdf

For many years in many countries a public-private partnership has been considered to be a very
favourable form of the implementation of public tasks, e.g. infrastructural investment projects.
The form of PPP is very attractive for public entities and private operators who quite successfully
implement their business strategies. In February 2009, a new Act on the Public-Private
Partnership came into force in order to create acceptable, more simplified legal solutions which
would contribute to increasing the number of projects implemented in the PPP formula. This
formula of public-private partnership becomes an increasingly popular tool for carrying out joint
investment projects by territorial self-governments and private investors. Since the new Act on
the Public-Private Partnership came into force an increasingly large number of projects has
emerged to be implemented under the PPP principles.
In accordance with Article 3 of the Act of 19 December 2008 on the Public-Private Partnership,
the tasks of the Minister responsible for the economy include, inter alia, the dissemination and
promotion of public-private partnerships. Within the framework of the implementation of this
provision, in 2010 the Ministry of Economy undertook a number of measures to promote PPP:
1. The creation of a Database on Public-Private Partnership Projects
On its website the Ministry of Economy created a database on public-private partnership projects
planned or being implemented, at the address: http://bazappp.mg.gov.pl/portal/.
The aim of the database is to collect and systematise information on PPP projects in Poland. This
database is to be systematically updated by Polish local governments and provide a flexible access
to data in this area for all the stakeholders (primarily, territorial self-government units). The
database is available in four language versions: in Polish, English, German and Chinese. Within
the framework of the promotion of the PPP database, a mission to China was organised. There
the representatives of 6 Polish cities had an opportunity to present PPP projects which they
intended to implement.
2. The appointment of the Team on the Public-Private Partnership.
The tasks of the Team will include the preparation of recommendations on the promotion and
implementation of public-private partnerships, in particular in the scope of:
1) proposing solutions regarding legislative amendments which would facilitate the
implementation of public-private partnerships;
2) proposing measures to promote public-private partnerships in Poland;
3) disseminating good practices in the scope of public-private partnerships, including the
tools worked out by the Member States of the European Union;
4) creating the conditions for better communication and dialogue among the
administration, business, social partners and non-governmental organisations in the
matters of the public-private partnership.
The members of the Team will include the representatives of the public administration,
territorial self-government units (represented by the Association of Polish Cities, the Association
of Communes etc.) and private partners (represented by the organisations of entrepreneurs). The
Team will determine the measures to be taken and the institutions which would take them so as
to enable the PPP formula to be used in the implementation of investment projects (e.g. the
development of strategies, amendments to legal regulations, the creation of new institutions etc.).
3.Training courses on public-private partnerships for the representatives of law enforcement
agencies and inspection authorities
The training courses are conducted for the representatives of the Central Anti-Corruption
Bureau, the Central Bureau of Investigation, the Public Prosecutors, the Police and the Supreme
Control Chamber. The scope of the training courses includes e.g. the following issues: the
independence of territorial self-government units in a partnership with private entities, a
discussion on the Act on the Municipal Economy, the Act on PPP and the Act on Concessions
for Construction Works and Services, the preparation of a PPP project, the procedure for the
selection of a private partner, the implementation of a PPP project, PPP and the Act on Public
Finance, the competence of the supervision authorities in the evaluation of the implementation of
PPP projects, the criteria for assessing legality, desirability, reliability and cost-effectiveness in the
context of the implementation of a PPP project. These training courses address issues which are
strictly related to the control of the correct implementation of PPP projects, examples of the
irregularities which can be found in PPP, forms of control/inspections, areas exposed to a special
risk of the emergence of irregularities, the evaluation of PPP from the point of view of control
institutions, the control of PPP in other countries and international PPP control standards.
4. The organisation of a study visit for the representatives of regional audit chambers and the
Supreme Control Chamber
The aim of the visit is make the participants acquainted with the effects of projects implemented
in the PPP formula in a country with large experience in this scope.

Polish international experiences in sustainable development:
The principle of sustainable development has been embraced in the Strategy for Poland?s Development
Co-operation, adopted by the Council of Ministers on 21st October 2003. The Strategy confirms
Poland?s commitment and political support for sustainable development and defines why and
how this key principle should be promoted through the Polish foreign assistance.
�� ?Poland accepted the Millennium Development Goals, signing the Millennium
Declaration in September 2000, as well as the Political Declaration and Plan
of Implementation adopted during the World Summit on Sustainable
Development (WSSD) in Johannesburg in September 2002. The
implementation of the adopted goals requires commitment by all the actors of
international life, involving not only material and financial transfers, but also
changes in trade, agricultural, investment and environmental policies";
�� ?OECD member states, including Poland as of 1996, grant development aid
out of conviction that sustainable development of humanity is in the common
interest, and that prosperity in developing states and those in transformation
also enhances the advancement of developed states?;
�� ?It is the main goal of Poland?s development co-operation to contribute to the
sustainable development, including poverty reduction, in countries receiving
Poland?s aid. The objectives of our development co-operation are in line with
the Millennium Development Goals and the guidelines of the European
Union?s development policy?;
�� [One of the principles of Poland?s development co-operation]:
?Comprehensive approach to development issues, including elements of
sustainable development, integrating economic growth with social
development and respect for the natural environment?;
�� [Co-operation in the framework of the European Union] ?We shall support EU
initiatives contributing to sustainable development of third countries and
improvement of the natural environment, to enhancing the quality of goods,
to preserving bio-diversity and rational utilisation of natural resources in the
framework of the common trade and agricultural policy and environment
protection policy";
�� [Co-operation in the framework of the United Nations system]: ?Poland
positively appraises the activity of institutions of the United Nations system in
promoting global development co-operation and UN operational activity in
reducing poverty and implementing the principles of sustainable
development. The universal character of membership and comprehensive
scope of competencies predestines the UN system to play the leading role in
bridging the global development gap?.

Polish international experiences in sustainable development:
The principle of sustainable development has been embraced in the Strategy for Poland?s Development
Co-operation, adopted by the Council of Ministers on 21st October 2003. The Strategy confirms
Poland?s commitment and political support for sustainable development and defines why and
how this key principle should be promoted through the Polish foreign assistance.
�� ?Poland accepted the Millennium Development Goals, signing the Millennium
Declaration in September 2000, as well as the Political Declaration and Plan
of Implementation adopted during the World Summit on Sustainable
Development (WSSD) in Johannesburg in September 2002. The
implementation of the adopted goals requires commitment by all the actors of
international life, involving not only material and financial transfers, but also
changes in trade, agricultural, investment and environmental policies";
�� ?OECD member states, including Poland as of 1996, grant development aid
out of conviction that sustainable development of humanity is in the common
interest, and that prosperity in developing states and those in transformation
also enhances the advancement of developed states?;
�� ?It is the main goal of Poland?s development co-operation to contribute to the
sustainable development, including poverty reduction, in countries receiving
Poland?s aid. The objectives of our development co-operation are in line with
the Millennium Development Goals and the guidelines of the European
Union?s development policy?;
�� [One of the principles of Poland?s development co-operation]:
?Comprehensive approach to development issues, including elements of
sustainable development, integrating economic growth with social
development and respect for the natural environment?;
�� [Co-operation in the framework of the European Union] ?We shall support EU
initiatives contributing to sustainable development of third countries and
improvement of the natural environment, to enhancing the quality of goods,
to preserving bio-diversity and rational utilisation of natural resources in the
framework of the common trade and agricultural policy and environment
protection policy";
�� [Co-operation in the framework of the United Nations system]: ?Poland
positively appraises the activity of institutions of the United Nations system in
promoting global development co-operation and UN operational activity in
reducing poverty and implementing the principles of sustainable
development. The universal character of membership and comprehensive
scope of competencies predestines the UN system to play the leading role in
bridging the global development gap?.

The present economic and financial crisis has shown that sustainable development is also of basic
significance for financial systems and the economy as a whole. It is also consistent with the idea
that the real economy should be supported and that the social effects of the present crisis should
be limited in line with the objectives which ensue from sustainable development in a long term.
The Government of the Republic of Poland supports the introduction of the principle of
sustainable development in the field of finance and the aid for the development of a dynamic
society based on knowledge, the use of low-emission technologies, the introduction of innovative
technologies, economical management of natural resources and social integration, pointing out, at
the same time, that the Member States should seek together solutions which would not curb the
competitiveness of the European industry at the times of an economic crisis.
Moreover, the main goals of the further actions to implement the sustainable development
strategy include a conscious participation of Polish society in measures for sustainable
development and the continuous raising of the environmental awareness of Polish society,
leading to: environmentally sound consumer behaviour, environment-friendly habits and the
incitement of the responsibility for the state of the environment, the organisation of local actions
serving to protect the environment, the participation in legal and control procedures relating to
environmental protection. In this scope, social communities undertake numerous local
environment-friendly actions and exercise control over the activities of enterprises and
institutions. In this respect, a special role is played by non-governmental organisations which
group the most active and conscious members of society and are the most valued partners which
control the activities of state authorities and enterprises from the point of view of environmental
protection. The provisions of legislation guarantee public participation in environmental
procedures and in the provision of opinions concerning draft legal acts and projects financed
with public funds, primarily with the resources of the European Union.
It is necessary to emphasise the significance of measures in the most important areas of the
European Union Strategy for Sustainable Development: a fast shift to a low-emission and lowoutlay
economy, greater efforts for the conservation of biodiversity, waters and other natural
resources, actions for social cohesion and the strengthening of international actions (including
those within the framework of the Commission for Sustainable Development (CSD), OECD,
UNECE, the Council of the Baltic Sea States, UNEP, or the preparations of the International
Conference Rio + 20). It is extremely important to stress the significance of social issues,
including public health and, and natural issues, i.e. biodiversity, which diminishes at a substantial
rate, while, at the same time, the impact of biodiversity on the quality of life of the present and
future generations is not so frequently highlighted, as well as to emphasise its role in the
economic development in a long term.
In the future actions, greater emphasis should be placed on the economic aspects, both in the
internal dimension through the implementation of structural reforms leading to a transition to
low-emission economy which efficiently uses environmental resources, and on the building of an
economic model based on knowledge and the further development of sustainable production and
consumption models.
The implemented strategy for sustainable development should include the issues related to the
policy of integrated territorial development which should efficiently respond to the territorial
needs and conditions, as well as geographical challenges and development opportunities of
regions. More importance should also be attributed to the tapping of the potential in poorer
regions and the connection of growth and competitiveness centres with the more weakly
developed areas surrounding them.
It should be noted that in the light of globalisation processes it is important to ensure that the
intensification of commodity exchange, which is a result of economies opening to cooperation
with developing countries, should be developed with respect for the principles of sustainable
development, while, at the same time, meeting the principles of competitiveness and in
accordance with international agreements.
Actions should also be continued to ensure the use of economic instruments contributing to
market transparency and shaping prices which reflect the real economic, social and
environmental costs of activities. In particular, it is important to point out the need to take action
to phase out environmentally harmful subsidies, since the environmental quality of products and
processes should be the basic criterion for assessing entrepreneurs and awarding other forms of
support to them, not only for environmental protection.

One of the key available voluntary system of actions is Corporate Social Responsibility (CSR)
Due to the horizontal and comprehensive dimension of CSR, different government
administration departments bear responsibility for implementation of tasks within particular
areas. In 2009, the Group for Corporate Social Responsibility Issues constituting an auxiliary
body of the Prime Minister, was appointed in order to ensure cohesion and coordination of
initiatives undertaken in relation to the popularisation of CSR at the national level. A
representative of the minister competent over the economy issues, acting in the capacity of the
Undersecretary of State, presides over the works of the Group. Representatives of a wide circle
of experts representing the government as well as business partners, social organisations, trade
unions and academia are engaged in the works of the Group and of the working groups specified
above. The main task of the working groups is formulation of proposals concerning
recommendations for the Group enabling improvement of conditions for CSR development in
the Polish economic realities.
Moreover, the Government undertakes a whole range of actions oriented at development of
dialogue and co-operation between the stakeholders. Seminars and training courses for state
administration servants, as well as representatives of private sector, are organised. Emphasis is
also placed on strengthening communication between the Government departments and
representatives of industries and other sectors. What is very helpful is the co-operation, initiated
in 2009, between the Ministry of Economy and the Responsible Business Forum (FOB) within
the framework of the World Business Council for Sustainable Development (WBCSD). The
agreement refers mainly to strengthening co-operation within the scope of promotion of
voluntary business initiatives for sustainable development, in particular actions aiming at raising
awareness, sharing experience and development of a dialogue platform between representatives
of administration, industry organisations and enterprises as well as scientific circles.
In 2008, the Ministry of Economy, in response to the needs of SMEs, commissioned preparation
of a CSR guide entitled ?Sustainable business, a guide for small and medium-sized enterprises?, aimed at
providing knowledge on the available tools and practices in the area of CSR which can contribute
to competitive advantage. In the works on the guide, the contractors: DNV and CentrumCSR.pl
co-operated with Polish managers so that the handbook presented guidelines for CSR
implementation adapted to the Polish realities. The guide promotes a systemic approach to
management in the areas of social responsibility, i.a. in compliance with the assumptions of the
ISO 26000.
The Government, benefiting from the flexibility of the CSR concept and the strong correlation
between the behaviour of producers and consumers, tries to promote the concept within the
scope of demand and supply sides. Poland participates i.a. in the implementation of the project
Sustainable Production through Innovation in Small and Medium sized Enterprises in the Baltic Sea Region,
SPIN3, subsidised within the framework of the European Fund for Regional Development. The
aim of the project is the promotion of innovative solutions for sustainable development,
including eco-innovation, environmental technologies and CSR. The activities undertaken by the
project partners focus on:
- identifying and meeting the needs of SMEs by way of adjusting the relation between demand
to the supply of innovation for sustainable development,
- developing and testing tools and instruments streamlining the implementation of innovation
for sustainable development within SMEs,
- identifying and testing appropriate incentives for SMEs to introduce innovation for
sustainable development,
- ensuring cohesion in creating international framework within the scope of promoting
innovation for sustainable development among SMEs in the countries from the Baltic Sea
region.

The quantification of objectives and the attribution of responsibility for the implementation of
the priorities of sustainable development, including the ?green growth? strategy, become a
prerequisite for effective monitoring and efficiency assessment of the actions carried out.

Five new challenges which Poland faces:
The idea of the development of the country is based on the constitutional principle of sustainable
development. The improvement of the territorial cohesion of the country in the domestic and
international dimensions, along with the simultaneous embarking on the path of sustainable
development, has been identified as the supreme goal. The main objectives are as follows: 1) the
strengthening of the territorial cohesion of the country through the development of transport,
telecommunications and energy infrastructure, ensuring the spatial integration of regional labour
markets and the attainment of a high standard of accessibility of public services; 2) the
improvement of the competitive position of the major urban centres and regions of Poland in the
European space, while maintaining the polycentric structure of the settlement system ? the
support for the creation of metropolitan functions of the major urban centres and the creation of
the conditions for the diffusion of the growth of these centres to other cities, while, at the same
time, strengthening subregional and local centres and developing cultural infrastructure in cities,
the preparation of the Polish space for the development of a knowledge-based economy; 3) the
achievement of a high quality of the natural environment, the protection of water and forest
resources, the halting of fragmentation of ecological systems, degradation of natural and
landscape values of space, as well as the loss of biodiversity; 4) ensuring a spatial order through
the rationalisation of space and the prevention of its degradation, the ordering of relations in the
functional areas of cities, the control of the processes of suburbanisation and dispersed building
in rural areas; 5) ensuring equal development opportunities for rural areas by improving the
standards of accessibility of public services, in particular those related to education, the
preservation of the value of their cultural image and the protection of strategic areas of
agricultural production.
The most important challenges in the area of environment include:
? 4. climate change (mitigation and adaptation)
? 1. energy crisis, including energy security
? 2. inefficient and wasteful patterns of consumption
? 5. increased frequency of natural disasters
? 3. drinking water scarcity
Climate change is now one of the most important issues related to the achievement of
sustainable development. Despite many risks related e.g. to the need for new investment
projects or environmental charges which affect the prices of the goods produced, the measures
to mitigate climate change and to adapt to climate change in a longer term can have a positive
effect on economic growth. However, it is necessary to appropriately balance the measures
taken; in addition, the major principles should be their social acceptability, economic viability
and the final environmental effect.

? legislation
? financial instruments
? public campaigns
A worldwide economic crisis confirmed the importance of structural reforms in the economy
? reforms which, on the one hand, would enable a quick and flexible response to the emerging
disturbances, and, on the other hand, would create the conditions for development based on
the efficient and sustainable use of resources. One of the key means of maintaining
economically sustainable development is innovation, leading to the restructuring of the
economy and the introduction of new business models, designed in particular to reduce costs.
Innovation should be perceived as a continuous process unfolding in organisations at the level
of the creation of new products and better adaptation of the organisational structure. Another
important issue related to the overcoming of the crisis and, at the same time, to the creation of
the foundations for further development is the growth of investment in human capital.
In addition, an integrated approach to policies which horizontally affect the Polish industry,
such as innovation policy, trade policy, environmental and human resource development
policies, is presented by the government document ?A Concept of Horizontal Industrial Policy
in Poland?4. One of the aims of the document is the enhancement of pro-innovation and
environment-friendly attitudes among entrepreneurs, and their ability to quickly respond to
changes taking place on the internal and global markets. Assumptions are being prepared for
the programme of the development of enterprises. This document will also provide the basis
for determining the direction of the development of industry and formulating
recommendations for entrepreneurs, organisations of economic self-government and the state
administration.
Among its assumptions and implementation-related provisions, the ?Green Economy? should
contain recommendations concerning: an integrated approach to social, economic,
environmental and region-based spatial development, recommendations for EU policies in the
light of global changes, at the time of globalisation and growing international
interdependencies, conclusions for a long-term strategy for sustainable development of the
EU countries and the coordination of the ?green development? policies of the EU Member
States within the EU.
One of the instruments to support the idea of sustainable development (in particular the
protection and improvement of the state of the natural environment) is the support for
investment projects which reduce the adverse impacts of industry on the environment,
including the rationalisation of the management of environmental resources, e.g. through
adapting the existing installations to the requirements of the Best Available Technique (BAT).
Pursuant to the Community IPPC Directive, Poland adopted the Environmental Protection Act
(EPA), where BAT is understood to mean the most effective and advanced stage in the
development of technologies and methods for conducting a given activity, which is used as the
basis for setting out emission limit values.
The purpose of the application of BAT is the use of environment-friendly raw materials, the
production of safe goods, the efficient use of energy resources and the minimisation of
emerging waste, along with the possibilities of its recycling, taking into account, on the one
hand, the technical and economic conditions and the calculus of investment costs, and, on the
other hand, the benefits for the environment.

There is a significant financial support from the different EU financial instruments for addressing
all challenges.

? adaptation to climate change
? food security
? energy security

The Sustainable Consumption and Production Action Plan adopted by the EU Member States
integrates the measures to reduce (directly or indirectly) the adverse impacts of production
activities, services and consumer behaviour on the environment. In addition, it becomes
necessary to develop long-term solutions which could combine economic objectives,
including competitiveness, with environmental protection. Indeed, the synergies between
environmental protection and economic growth remain important, i.e. environment-friendly
investments and measures should be so oriented that they contribute as much as possible to
sustainable development.
In order to enable industry to enjoy the maximum benefits from the implementation of
sustainable development policy and, at the same time, to strengthen its competitive position,
measures taken on the demand and supply sides in respect of products manufactured in line
with the principles of sustainable development are of key importance. On the demand side, it
is most important to generate demand for green products and to introduce mechanisms
designed to diminish consumers? reservations about the high prices of sustainable products
(e.g. using market-based instruments). In addition, it is necessary to promote the principle of
the elimination of pollutants at source in order to avoid the generation of pollutants through
the use of cleaner production methods, innovation and closed circuits. At the same time,
goods producers should take appropriate attitudes conducive to the production of recyclable
materials and correct consumption patterns should be promoted. In turn, on the supply side,
the building of the social and environmental responsibility of producers is of key importance,
primarily by using voluntary instruments so that would see the need to develop their
production on the basis of the most efficient technologies in environmental and economic
terms.

In the light of the significance of infrastructure and its stimulating effect on growth, it seems
necessary to note the need to create modern, coherent and efficient transport, energy,
teleinformation and research infrastructure, as well as social infrastructure (including
infrastructure for culture and health). Indeed, it is in the interest of the EU as a whole to use as
much as possible its internal potential, which is now hampered by the exclusion of many areas
and communities, as a result of the absence or inadequate development of relevant
infrastructure.
In order to meet the challenges which the global economy poses for enterprises, it is necessary
to change the approach to innovation, including eco-innovation. The existing concepts of
support for R&D as a source of a competitive advantage are important, but insufficient, in the
light of the need to build a knowledge-based economy. It is necessary to expand the scope of
thinking about innovation to include new forms of the development of innovation and the
creation of innovation policy which would respond to global challenges. The building of a
knowledge-based economy implies the need to develop the abilities to cooperate and to
transfer knowledge among enterprises, research centres and consumers. For this purpose, it is
necessary to take relevant measures to enhance the role of science in the economic
development.
The enhanced use of the results of R&D work in the economic practice also needs a new
approach to industrial policy, which should take more widely into account such horizontal
issues as the improvement of innovation, the limitation of adverse impacts on the
environment, the development of human resources and the simplification of a system of legal
and administrative regulations.
One of the priority tasks under the strategy for sustainable development is the implementation
of mechanisms which ensure economisation of environmental protection, the development of
the production of goods and services which limit environmental burdens and lead to more
sustainable consumption and the development of scientific and advisory potential conducive
to the introduction of technical innovation, which leads to the restructuring of industry and the
adoption of new business models. Another element of the creation of the basis for the future
development is the growth of investment in human capital. The aid for education and
assistance can accelerate job creation, in particular in sectors with high growth potential,
enabling the development of their operations in the competitive economy, primarily based on
knowledge. This purpose is served by the implementation of the National Strategy for
Environmental Education ?Through Education to Sustainable Development?. A conscious and
active society is the foundation for the functioning of the state, and thereby for environmental
protection. Conscious local communities can undertake numerous local environmental and
promotion actions and they exercise effective control over the operations of enterprises and
institutions. In order for them to play this role effectively, it is necessary to ensure their access
to information on the environment and its protection and on the activities of institutions active
in the sector of environmental protection. Environmental non-governmental organisations also
play an important role.
The investment goals related to the reduction of water-, material- and energy-intensity, as well
as the sustainable use of space, fish stocks, forest resources etc., will be achieved on the basis
of the existing strategies and policies (including e.g. the National Environmental Policy for
2009-2012 with an Outlook until 2016, sectoral strategies, the Integrated Product Policy, the
Strategy for Changing Production and Consumption Patterns into Those Favourable for the
Implementation of the Principles of Sustained and Sustainable Development).

Green economy concept is continuously gaining importance at policy makers level. However,
so far there is no specific definition of green economy term in any of the strategic documents.
Commonly, green economy is understood as an important part of sustainable development
strategy, where special attention is paid to the environmental issues. Recently, green economy
is also a part of political discussions on the elaboration and implementation of low
emission/carbon development strategy.

- There is no specific policy document dealing with green economy in a broad context. The
emphasis is put rather on including environmental, social, and ethical aspects, depending on
the subject, in particular Government strategies and programme documents.
The significance of sustainability challenges was emphasised, i.a. in the ?Implementation
Document of the National Reform Programme 2007-2013 for implementation of the Lisbon
Strategy? (NRP) identifying the priorities and directions of actions for growth and jobs. The
most important tasks related to the sustainable development specified in the Implementation
Document of NRP include: development of sustainable production and consumption,
environmental technologies, as well as promotion of green public procurement, preparation
and implementation of ?green? tax reform. Furthermore, due to a new, EU economic strategy
for growth and jobs ?Europe 2020 - strategy for smart, sustainable and inclusive growth?,
adopted by the European Council in June this year, the Member States are obliged to present a
new NRP. Poland is at the stage of specifying preliminary assumptions to the document.
Simultaneously, works are carried out aiming at limiting the number of the applicable
strategic documents to 9 key strategies in compliance with the long-term and medium-term
strategy of country development. Sustainability challenges will be reflected i.a. in the Strategy
for Innovation and Effectiveness of the Economy and Energy Security and the Environment
Strategy.
On 14 June 2010 the Council of Ministers adopted a new three-year ?National Action Plan on
sustainable public procurement for 2010-2012? that presents the objectives, timing and a
system for coordination and monitoring of implementation of actions in both the green and
socially responsible procurement. At the same time a number of initiatives are implemented,
which aim at creating in Poland a modern system guaranteeing the disbursement of public
funds to stimulate the development of innovative economy, which is consistent with the
document prepared by the Ministry of Economy in co-operation with the Public Procurement
Office entitled ?A new approach to public procurement. Procurement and small and medium
enterprises, innovation and sustainable development? (adopted by the Council of Ministers
on 8 April, 2008). The document highlights, among other things, the need for wider use of
criteria relating to environmental protection and CSR in the contract award proceedings.
Furthermore, on 14 June 2010 the Council of Ministers adopted a new three-year ?National
Action Plan on sustainable public procurement for 2010-2012? that presents the objectives,
timing and a system for coordination and monitoring of implementation of actions in both the
green and socially responsible procurement.
The important elements of green economy are also incorporated in the measures towards
implementation of the EU climate and energy package.
Voluntary initiatives and bottom-up incentives also play an important role in transformation
to green economy. Poland has been a signatory to the International Declaration on Cleaner
Production since 1999. There are two centres coordinating the implementation of Cleaner
Production programmes in Poland ? the National Centre for Implementation of Cleaner
Production at the Central Mining Institute5 and the Polish Cleaner Production Centre6. They
help to increase environmental and economic benefits on local and regional scale through the
implementation of CP projects and Environmental Management Systems, based on ISO
14000 or EMAS. Additionally, there has been Responsible Care Programme, implemented
since 1992 and supervised by the Polish Chamber of Chemical Industry.
A number of activities are being pursued with the aim of raising environmental awareness.
Owing to the co-operation between the Polish Federation of Engineering Associations and its
Norwegian counterpart, a Cleaner Production Programme was launched in Poland as early as
in 1991. The agenda of activities of the National Centre of Cleaner Production7 addresses a broad
range of customers, including representatives of local authorities and of the administration at all
levels, managers of enterprises being restructured, employees of SMEs and other persons
interested in environmental protection issues.
Climate change
Poland was hosting the COP 14 Conference (The 14th Conference of the Parties to the United
Nations Framework Convention on Climate Change, UNFCCC), along with the 4th Session
of the Meeting of the Parties to the Kyoto Protocol, which took place from 1 ? 12 December
2008 in Poznań. It was the most prestigious forum of political discussion in the scope of
climate protection held in Poland so far. The Conference was organised by the Secretariat of
the United Nations Framework Convention on Climate Change and hosted by the
Government of the Republic of Poland, while the preparations were co-ordinated by the
Ministry of the Environment. The two-week session was attended by nearly 8,000
participants: more than 190 government delegations headed by the Ministers for the
Environment or Climate Change, international institutions, environmental, business and
research non-governmental organisations and media. It should be noted that hosting the
above-mentioned conference in Poland contributed to raising social awareness as regards the
climate change ? as a result of the educational and promotional campaigns, as well as
increased interest of the national media in this issue. Active participation of the
representatives of Polish entrepreneurs and local governments resulted in numerous initiatives
within the scope of climate change on a local scale.
During the COP14 preparatory stage, the Ministry of the Environment launched the platform
for co-operation with business, NGOs and local governments, under the name ?Partnership
for Climate?. The aim of the platform is undertaking joint initiatives at various levels ? local,
regional and national to raise social awareness. The project involved launching the website
5 http://cp.gig.katowice.pl
6 www.programcp.org.pl/polpcp.htm
7 coordinated by the Central Mining Institute (GIG) in Katowice.
(www.klimatolubni.pl), constituting a platform for sharing opinions and knowledge on the
reduction of CO2 emissions and water consumption in households and small enterprises.
Activity of ?Partnership for Climate? resulted in the publication of ?Family package?,
comprising 3 different manuals addressed at various group ages.
? Climate coalition
In June 2002 the Climate Coalition8 was formed, with the aim of joint activity of nongovernment
organizations for the purposes of climate protection. From May 2008 to
January 2010, the Coalition implemented the project called ?S.O.S. Climate!?, aimed at
creating favourable social and political conditions in order to urge Poland to declare
undertaking ambitious steps in the field of climate protection. The programme results in the
national campaign, implemented since August 2008, called ?Climate Tour?9, or ?Lectures in
the field of climate change?. The aim of the campaign is to create favourable conditions for
educational and pedagogical institutions, NGOs and other interested institutions to benefit
from the knowledge of persons professionally dealing with the issues of climate change and
climate protection. In addition, since the beginning of 2009, the Polish Green Network10 has
been implementing the ?For the Climate? Programme, prepared with the assistance of the
Institute for Sustainable Development.
? Reduction of greenhouse gases emission
Poland, as a country whose economy to a considerable extent relies on coal,
can work out the model of reduction of greenhouse gas emissions, applicable
for other countries of similar energy mix. In order to implement the provisions
of the climate and energy package and the obligations of the Republic of
Poland with regard to the United Nations Framework Convention on Climate
Change, the Ministry of Economy commenced the preparatory works on the
National Programme for the Reduction of Greenhouse Gases Emission. The
goal of the Programme is to identify the actions aimed at the most costeffective
reduction of greenhouse gases emission from all the areas of the
state activity.
The National Programme for the Reduction of Greenhouse Gases Emission is
created in co-operation with the Board of Trustees for the National
Programme for the Reduction of Greenhouse Gases Emission, appointed in
2009. The mission of the Board is providing independent and comprehensive
strategic knowledge, allowing the implementation of the low-emission vision
of economy. The major aim of the implemented action is the optimisation of
the process of emissions reduction, as the basic tool for climate protection.
The auxiliary aim is to convince the society, including entrepreneurs, about
the legitimacy of the actions for climate protection, as well as to ensure their
profitability.
Moreover, in 2008 the agreement was signed as to the appointment of the Polish Platform for
Clean Coal Technologies. The Platform is to focus on diagnosing technologies for capturing
8 http://www.koalicjaklimatyczna.org/lang/ang/page/s_o_s__climate_/id/57/
9 http://www.koalicjaklimatyczna.org/lang/ang/page/climate_tour/id/59/
10 www.zielonasiec.pl
CO2 possible to implement, as well as safe transportation and storage of CO2 in the geological
beds of Poland. The project participants included PGE Polska Grupa Energetyczna SA,
Południowy Koncern Energetyczny SA, Elektrownia Kozienice SA, EDF Polska Sp. z o.o.,
Dalkia Polska, CEZ Polska, Electrabel Polska SA, Zespół Elektrowni Ostrołęka SA.
In the light of promoting solutions facilitating reduction of greenhouse gases, it is worth
noting that within the framework of the ?Polish Product of the Future? Competition,
organised by PARP (with honorary patronage of the Prime Minister) since 1997, the Special
Award of the Minister of Economy ?eCO2 Innovation? has been granted since 2002 for the
product of the greatest potential within the scope of reducing greenhouse gas emissions.
? Sustainable energy
Another great achievement of Poland was setting up a consortium with the participation of
Polish institutions of higher education, scientific and business units, which were selected to
create the European Community for Knowledge and Innovation ?Sustainable Innovation?.
Partners to the project include Polish academic and scientific centres (AGM University of
Science and Technology, Silesian University of Technology, Wrocław University of
Technology, Central Mining Institute, Institute for Chemical Processing of Coal) and
enterprises: Tauron, PGE, Lotus. The consortium members also include entities from
Germany, Sweden, Belgium, Spain and Holland.
Another important business initiative in Poland was launching the Responsible Energy
platform in 200911, aimed at undertaking sectoral discussion on CSR. So far, two national
conferences were organised within the framework of this initiative. During the first one in
2009 the Declaration on Sustainable Development in the Polish Power Sector was adopted by
such enterprises as EDF Polska, Enea, GAZ-SYSTEM S.A., GDF SUEZ Energia Polska,
Polskie G?nictwo Naftowe i Gazownictwo, Tauron and Vattenfall Poland. In the main
message of the Declaration it is stated that the joint efforts of the power sector should focus
on the application and promotion of the concept of sustainable development, i.a. by initiatives
undertaken in the enterprises and partnerships created at regional and international level.
Moreover, in June 2009 was held the 1st National Conference Responsible Energy. Challenges
for the Sustainable Development in the Power Sector. The aim of the conference organised by
PGNiG S.A. and PwC, under the patronage of the Minister of Economy, was
promoting the concept of CSR among energy enterprises and adopting
Declaration on sustainable development in the power sector in Poland. A year
later, in June 2010, the second conference of the series was organised. 16
local conferences on CSR were organised within the framework of the national
Festival of Entrepreneurship.
It should be noted that the Government administration bodies also undertook initiatives aimed
at implementation of CSR concept by sectoral enterprises, i.a. from the power sector. The
Group for Research on the Issues of Social Responsibility of Energy Enterprises, appointed
by the President of the Energy Regulatory Office (URE) in April 2008, prepared a Report
?The President of the Energy Regulatory Office and the social responsibility of energy
enterprises. Final report?, presenting a definition of CSR proposed for energy enterprises.
Moreover, the Group for Conducting and Elaborating Survey Research on Social
Responsibility of Energy Enterprises, appointed by the President of URE in March 2009
11 http://www.odpowiedzialna-energia.pl
conducted first survey research of energy enterprises and presented the findings in the Report
entitled ?Social responsibility of energy enterprises in the light of survey research. Report?
The President of URE, in September 2009, appointed the Group for Coordinating Works on
the Issues of Social Responsibility of Energy Enterprises at the Energy Regulatory Office.
The Group members include representatives of the President of URE and PwC, FOB, DNV,
The Polish National Energy Conservation Energy, Employers of Poland; and a representative
of the Institute of Labour and Social Studies also participates in the works The task of the
Team entails ensuring education and assistance for energy enterprises in the implementation
of the CSR concept, including the help for socially sensitive recipients in avoiding the
suspension of the supply of energy, and educating the energy enterprises surroundings with a
view to raise awareness of the recipients regarding their rights against energy enterprises.
Moreover, second survey research on energy enterprises was conducted within the framework
of the works of the Team and concerned implementation of the concept of social
responsibility of energy enterprises.
? Emissions management
In the light of global challenges, related to climate protection, a particular significance is
attributed to the action within the scope of carbon footprint, and participation in voluntary
international initiatives, like UN Caring for Climate12 or Carbon Disclosure Project (CDP)13.
In 2009 a seminar entitled ?Carbon Footprint in practice? was organised by the Ministry of
Economy and CSRinfo, the aim of which was familiarisation with the idea of emissions
management in an enterprise. In addition, workshops were organised by PwC with a view to
emphasising the CDP initiative and presenting the role of information flow with respect to
limiting negative impact on the environment and climate within the framework of CSR
strategy. The meeting was addressed at directors and managers responsible for environment
protection, CSR and at employees of investor relations and communication departments in
companies. The workshops participants included experts from Poland, Great Britain,
Switzerland and Hungary and representatives of 27 Polish companies and organisations.
Voluntary initiatives for environmental protection increasing gain in significance in the
policies of enterprises. Their essence is to recognise the natural environment as an integral
part of all the activity areas of an enterprise and their aim is to minimise their adverse impact
on the environment. This approach is based on the introduction of an environmental
management system pursuant to the ISO 14001 Standard and the Community Eco-
Management and Audit Scheme (EMAS), as well as the Cleaner Production Programme and
the Responsible Care Programme.
In Poland, the Responsible Care Programme has been implemented since 1992 and now it has
been signed by 37 companies. This is a programme, where chemical companies are involved
in effective activities to ensure the meeting of ethical principles, the improvement of working
conditions and the better operational safety of manufacturing installations.
Different initiatives are undertaken within the framework of the Programme. The most recent
one is the project carried out since 2009 called the Environmental Academy of Competences.
This project was addressed to kindergarten staff, nature teachers and teachers supervising
given school classes. Didactic sessions and field activities cover e.g. waste management or air
pollution. ANWIL Joint Stock Company, together with Chemeko Co. Ltd, and the Puławy
12 http://www.unglobalcompact.org/Issues/Environment/Climate_Change/index.html
13 http://www.cdproject.net/
Nitrogen Works Joint Stock Company, were the first companies from among the signatories
of the Responsible Care Programme to undertake to implement this project.
Since 1996 in Poland the Cleaner Production Programme has been implemented by the
Association ?Polish Cleaner Production Movement? and the National Cleaner Production
Implementation Centre operating within the framework of the State Mining Authority. The
CP Programme includes the implementation of CP projects in enterprises and other
organisations which bring tangible environmental and economic benefits as well as ensure
education and promotion of the principles of sustainable development.
The Polish Cleaner Production Movement also keeps the Register of Cleaner Production and
Responsible Care, which is a list of entrepreneurs distinguished in their operations by
activities designed to reduce their material-, water- and energy-intensity. The companies listed
in it are also obliged to sign the principles of the Global Compact. At present, the Register
holds 43 organisations, including both entrepreneurs and self-government units, selected by
the Chapter of the Register.
Another important element of enabling green economy is securing financial resources. Poland
is an example of the most effective financial system for environmental protection. National
Fund for Environmental Protection and Water Management together with regional Funds,
established 20 years ago, remain the principal financial tool for green investments. The
National Fund, which operates in accordance with the Environmental Protection Law, is a
special purpose fund with legal personality and manages its finances independently. It
finances tasks relating to environmental protection and water management from its own funds
and from monies otherwise obtained. The National Fund is the largest institution in Poland
that cooperates with international financial partners and handles foreign funds designated for
environmental protection. In recent years the National Fund has had the important task of
demonstrating its effective and efficient use of funds obtained from the European Union for
the development and modernization of the infrastructure for protecting the environment in
Poland. Coordinating ecological projects which have already obtained, or are in the process of
receiving, financial support from the European Commission, and co-financing these projects
from the resources of the National Fund, will help Poland achieve the environmental goals
that result from its international obligations. The National Fund?s monies derive from the
following: fees paid for use of the environment for economic activity; penalties paid for
violation of the ecological law - which is closely connected with the Environmental Protection
Law; utilization and concession fees collected under the Geological and Mining Law; fees
determined under the Water Management Law, and also the act on recycling of
decommissioned vehicles. Since co-financing mostly takes the form of loans, the National
Fund constitutes a ?renewable source of financing? for environmental protection projects.
Loans and grants, as well as other forms of co-financing provided by the National Fund, are
mainly designated for co-funding large national and pan-regional capital projects for
controlling water, air and land pollution. Grants are also allocated for tasks related to geology
and mining, environmental monitoring, preventing threats to the environment, protecting
nature and forestry, promoting environmental awareness, protecting children against health
threats, and also scientific and research work and for obtaining expert opinions. Recently top
priority has been given to investments related to improving energy efficiency and using
renewable energy sources.
An effective financial instrument was also Eco-Fund (Polish debt for environment swap
fund). EcoFund is a foundation called into being in 1992 by the State Treasury, represented by
the Ministry of Finance, to efficiently administer the money derived from the conversion of a
part of the foreign debt of Poland into a fund intended to support environmental protection
projects (within a mechanism usually referred to as ?debt-for-environment swap?). Decisions
to join the Polish-debt-for-environment-swap scheme were taken by the USA, France,
Switzerland, Italy, Sweden (to expire at the end of 2003), and Norway. The EcoFund?s task
was to subsidize environmental protection projects that are not only important for the region
or the whole country but also help to attain ecological goals recognized by the international
community as all-European or even global priorities.
The most recent initiative to mobilize financial resources for environmental resources,
focusing on climate change mitigation, is Polish Green Investment Scheme Programme (GIS).
Due to restructuring of the economy in 1990s, focused inter alia on reduction of the impact of
the national economy to the environment and decoupling of the GDP growth from the
emissions levels, Poland will have GHG emissions well below target established under the
Kyoto Protocol. The surplus amounts to 500 million of AAUs in the period 2008-2012, and is
assumed to be the third largest, after Russian and Ukrainian. As of April 29, 2008 Poland met
specific criteria and became eligible to engage in international emissions trading (Article 17
of the Kyoto Protocol) including trading of AAUs. The Polish Act on management of GHG
emissions and emissions of other substances adopted on July 17, 2009 defines:
- proceeds from the transactions can be spent on hard greening, as well as on soft
greening.
- transparent rules for acquiring of the applications for projects, that can be cofinanced
from the GIS proceeds,
- robust but flexible regulations for monitoring, reporting and verification of the
effects provided by the projects,
- other operational rules of National Green Investment Scheme.
According to the Act, the operating entity for the National GIS is the National Fund for
Environmental Protection and Water Management (NFEP&WM). Within the GIS
Programme, four priority areas have been identified: energy mamangement, biogas, biomass
and power grids improvement.
Furthermore, in November 2009, the Warsaw Stock Exchange launched the first in Poland,
and one of the few in Europe, Index of the socially responsible companies named Respect
Index, constituting an acronym of the words reflecting the essence of CSR: Responsibility,
Ecology, Sustainability, Participation, Environment, Community, Transparency. The aim of
the initiative is primarily raising investors? interest in companies demonstrating exceptional
involvement in CSR initiatives. The analysis covers companies listed on the Warsaw Stock
Exchange, with the exception of NewConnect, foreign and dual-listed companies. The
companies included in the Index are analysed according to the definition of social
responsibility, whereby it is a management strategy and philosophy of doing business. In
assessing the enterprises, the share process and income from dividends and rights issue.
Currently the Index is performing according to expectations, i.e. it is more stable and less
volatile in comparison with the other indices, at the same time ensuring profitable rate of
return.

- In the opinion of Poland, the policy mix for enabling smooth transition to green economy will
need to be pursued in such a way that does not solely offer long-term opportunities for the
functioning of economies to improve, but rather also allow for an easing of the effects of
economic and financial crises, and form a foundation for stable economic development based
on the efficient and sustainable use of resources. In this context, we would seek to stress the
way in which future measures should be premised as far as possible upon a ?win-win?
approach. The policies setting up an incentives for stakeholders seems to be the most efficient
ones. The creation of demand for ?green products? from consumers? side is of particular
importance. Therefore, promotion of more sustainable consumption and production patterns
must be closely linked to green policies.

- Taking into account the national circumstances, including the relatively large share of
?traditional?, energy and resources intensive sectors, any future green economy should not
lead to exclusion of new groups of society due to the loss of jobs. There is no doubt that the
creation of ?green jobs? in new-technology sectors will be to some extent at the expense of
traditional sectors. Therefore, the associated programmes to modify and/or raise people?s
qualifications through comprehensive training programmes are of key importance. Market
mechanisms in these areas will need to be backed up by wide-ranging educational measures.
Grren policies should also protect low-income groups against i.a. possible increase in prices
for energy. To this end, policy mix should provide instruments to minimize the so-called
?energy poverty? of specific groups of society.

The key elements of green economy concept will be incorporated into the mainstream
economic policy, i.e. Europe 2020 strategy, as well as broader sustainability debate.

The most beneficiary results of implementing green economy concept seem to be as follows:
? more efficient use of available resources
? energy efficiency improvement
? reduction of negative impacts to environment
? more innovative economy, including development and diffusion of new,
environmental technologies
? sustainable consumption and production patterns

Taking into account the specific of Polish economy and labour market, energy, housing and
transport sectors are the most promising ones.

? fiscal incentives
? green public procurement , including eco-labelling and eco-design systems
? support for R+D and innovation
? raising public awareness concerning consumption and production patterns

Over the last 20 years, Poland has undergone the comprehensive and successful
transformation to market economy. Since 1990, the clear trend of decoupling economy
development from environmental impacts is being observed. The pollution levels has
decreased significantly, GHG emission levels dropped by more than 30% comparing to Kyoto
Protocol base year (1988) and the overall state of environment is significantly improved. It
must be underlined that this spectacular development was available at no expense to
environment, being fully in line with sustainable development principles.

The key elements of successful implementation of sustainable development strategy in Poland
are as follows:
? respecting the sustainable development as the principal way of development (in
accordance with provisions enshrined in the country?s Constitution of 1997
(specifically Article 5 thereof), Poland is committed to the principles of sustainable
development).
? establishing the reliable system for financing investments in environment sector
(National Fund for Environmental Protection);
? EU accession process with strong political commitment and broad engagement of
business and society

In Poland the green economy concept is still gaining the momentum. The important role is
being played by non-governmental organizations. The need for addressing global challenges
like climate change is consequently becoming more and more important. During the last years
the environmental dimension of sustainable economy development has been permanently
placed on political agenda. This is due to both international and domestic processes. For
example, the highest political involvement in climate change conference in Copenhagen
accompanied by pressure from Polish NGOs were a clear sign that green economy concept is
treated seriously and will remain on the government agenda.

There is no specific study/evaluation focused exclusively on possible impacts of green
economy policies. However, the key issues of sustainable development of Poland , including
those linked to green economy, are comprehensively addressed in the study ?Poland 2030.
Development challenges?, prepared in 2009 by a team of strategic advisors to Polish Prime
Minister.
The study lists 10 key challenges to be faced by Poland over the next two decades ? growth
and competitive edge of the economy, demographic developments, high professional activity
and adaptability of labour resources, adequate infrastructural potential, energy and climatic
safety, knowledge-based economy and development of intellectual capital, solidarity and
regional cohesion, enhancement of social cohesion, efficient state, and increase in the social
capital. Response to those challenges will drive the country?s development, the pace of
economic growth, the status of Poles and the position of Poland on the economic and the
social map of Europe.
The report features an analysis of the current standing of Poland in those areas and indicates
guidelines for the state policy to meet development challenges ? evade threats and fully
capitalise on the emerging prospects and chances. It also identifies the path for sustainable
development of Poland aligned to the polarisation diffusion model. The document lists five
key drives which may facilitate meeting these challenges: development of conditions for swift
increase in investments, growth in professional activity and mobility of Poles, boost in
productivity and innovations, effective diffusion on the regional and social level as well as
reinforcement of the social capital and efficiency of the state. Presentation of this report
initiated a series of debates and discussions focusing on the strategic development targets of
Poland.
Further information about the study, including the summary in English, is available at:
http://www.kprm.gov.pl/en/government/poland_2030_development_chall

There is no specific study/evaluation focused exclusively on possible impacts of green
economy policies. However, the key issues of sustainable development of Poland , including
those linked to green economy, are comprehensively addressed in the study ?Poland 2030.
Development challenges?, prepared in 2009 by a team of strategic advisors to Polish Prime
Minister.
The study lists 10 key challenges to be faced by Poland over the next two decades ? growth
and competitive edge of the economy, demographic developments, high professional activity
and adaptability of labour resources, adequate infrastructural potential, energy and climatic
safety, knowledge-based economy and development of intellectual capital, solidarity and
regional cohesion, enhancement of social cohesion, efficient state, and increase in the social
capital. Response to those challenges will drive the country?s development, the pace of
economic growth, the status of Poles and the position of Poland on the economic and the
social map of Europe.
The report features an analysis of the current standing of Poland in those areas and indicates
guidelines for the state policy to meet development challenges ? evade threats and fully
capitalise on the emerging prospects and chances. It also identifies the path for sustainable
development of Poland aligned to the polarisation diffusion model. The document lists five
key drives which may facilitate meeting these challenges: development of conditions for swift
increase in investments, growth in professional activity and mobility of Poles, boost in
productivity and innovations, effective diffusion on the regional and social level as well as
reinforcement of the social capital and efficiency of the state. Presentation of this report
initiated a series of debates and discussions focusing on the strategic development targets of
Poland.
Further information about the study, including the summary in English, is available at:
http://www.kprm.gov.pl/en/government/poland_2030_development_chall

Instead of identifying specific instruments shifting the economy on to ?a greener path?, the
outcome should identify long-term goals, including monitoring framework and address the
possible threats related to different level of economic development of different countries. It
must be underlined that implementation of green economy concept should not be at the
expense of less advanced states. It is of crucial importance that marked disparities in levels of
development and other specifics of economies be taken full account of, to ensure a ?level
playing field?. The path leading towards a green economy may not be permitted to give rise to
yet-greater disparities, but must rather help stimulate ? in a flexible manner ? a narrowing of
gaps globally, between countries and between regions and therefore support the
implementation of Millennium Development Goals, including poverty eradication.
International cooperation in the context of green economy should therefore be implemented in
the way that preserves competitiveness and counteracts any widening of existing gaps
reflecting different economic potentials. This also applies to the development and technologytransfer
spheres. Furthermore, as the principles of green economy are being propagated and
disseminated, a key role will need to be ascribed to increased public awareness, i.a. through
educational activity to ensure social acceptance of objectives identified and remedial
measures proposed.

There is no doubt that the horizontal nature of green economy concept establishes strong and
direct linkages to all sectors and policies. The identification of existing synergies will be
crucial to avoid possible overlapping and ensure most effective use of financial resources. It is
of particular importance in present times, when economic and financial crises has limited the
availability of finance for investments.
It seems that employment sector will be in particular sensitive in countries with relatively
large share of ?traditional? energy and resources intensive sectors, where competitiveness will
drive the transition process. The greening of economy can unavoidably lead to job losses in
such sectors. It is of crucial importance to address this issue in an efficient way to avoid
exclusion of new groups of society due to the loss of jobs in specific sectors when the process
of creation of new, green jobs in other sectors could not provide the adequate compensation
i.a. due to different skills needed and mobility required. The transition towards green
economy must be a smooth and evolutionary process. Green policies should also protect lowincome
groups against i.a. possible increase in prices for energy. To this end, policy mix
should provide instruments to minimize the so-called ?energy poverty? of specific groups of
society.

Poland recognises the importance of the International Environmental Governance (IEG) process
and supports the relevant decisions taken in the course of the Special Session of the UNEP
Governing Council.
The International Environmental Governance should be consistent with the principle and
strategy of sustainable development. In addition, the integrity of linkages of the environment with
the economy and social issues should be stressed. Environmental issues cannot be considered in
isolation, without analysis of effects, either in a short or a long term.
Poland believes that it is necessary to improve the United Nations System in order to put in place
a more efficient and rational system serving all the states, meeting the need for better
coordination and coherence of the implementation of multilateral environmental agreements, as
well as the need to develop and improve the functioning of the institutional framework in the
field of the environment.
Poland supports the improvement of the operational efficiency of UNEP, in particular to ensure
that the international environmental governance system being built is highly efficient in the scope
of coordination and cooperation. Another issue is the transformation of UNEP into UNEO, an
organisation which would be an agency operating in a similar formula as e.g. WHO or FAO. The
establishment of UNEO could be, on the one hand, a response to these expectations, while, on
the other hand, UNEO should cope with new environmental tasks and challenges at regional and
global levels.
The reform of UNEP should also be an element of wider activities covering the entire United
Nations Organisation and it is from this viewpoint, too, that the possible establishment of
UNEO should be assessed. Poland holds the position that such a reform should not lead to a
significant increase in the financial commitments of the Member States, that the role of the
regional units of UNEP or UNEO should be strengthened and that the participation of scientists
and experts should be enhanced, e.g. in connection with the programme to strengthen the UNEP
scientific base as contained in the Environment Watch Strategy: Vision 2020.
In respect of the issues of scientific research, monitoring and early warning, Poland deems it welladvised
to strengthen the UNEP scientific base, which would, in cooperation with other
organisations, serve as a coordinating centre. UNEP should be more efficient as regards the
monitoring of the global state of the environment, the assessments of this state and early
warning. It is a task for UNEP to better mobilise scientific support and ensure the transfer of
information and knowledge and the provision of technical and training assistance. Consideration
should be given to the strengthening of the analytical base of UNEP to enable comprehensive
long-term projections of changes and risks, as well as the formulation of a strategy to prevent
their large-scale adverse effects.
In respect of the issues of the coordination of work and cooperation among environmental
agencies, cooperation should be strengthened mainly among UNEP, UNDP and UNIDO in the
scope of the global approach to environmental protection and sustainable development, taking
into account not only the environmental dimension, but also the economic and social context.