In Karpacz, entrepreneurs, government representatives and bankers talk about the green revolution. What is BOŚ's place on the map of the green revolution?
Action to limit climate change is on everyone's lips today. There is no turning back from this. Companies need to embrace these issues, not only in terms of image, but above all to incorporate these issues into their own development strategies, so as not to lose competitiveness on the Polish, European and global markets. Bankers are wondering how to finance the needs of the green transition. They are, according to various reports, huge, unprecedented in the Polish economy. The figures start from several hundred billion zlotys in the energy sector alone, and reach 1.4 trillion zlotys if we add investments in power grids, nuclear power, and take into account the transformation of transport, industry and construction. We, the bankers, are thinking how to activate the funds with the help of national and European public funds, but also with the help of the guarantee system of BGK, also the European Investment Fund or the European Investment Bank, in order to generate the gigantic funds in the Polish economy. The role of BOŚ is that we want to actively participate in these processes and build the conviction among Polish entrepreneurs that we are the bank of primary choice for all those who want to make pro-environmental investments in their business, local government or agribusiness. We are on the right track.
What projects engage BOŚ today?
These are programmes for generating energy from renewable sources (sun, wind). We would like to enter into the programme of agricultural biogas plants or support for the establishment of energy cooperatives, which are beginning to appear in Poland. The green revolution and energy transition is happening faster than many experts expected four to seven years ago. We need to ensure that the energy system is changed and stabilised. This primarily concerns energy storage facilities, because energy from renewable sources is clean, but can sometimes be chimerical in terms of the time of production. The system needs to be supplemented with energy storage facilities. We trust that the idea of energy cooperatives will also be widely promoted in Poland, so that the necessary investments can be made jointly and funds can be spent rationally.
Does BOŚ have no problem with capital to be an intermediary and respond to market demand?
BOŚ is a commercial bank with a large share of the State Treasury through the National Fund for Environmental Protection and Water Management (NFOŚiGW). We are part of a conglomerate that was set up in the 1990s to improve the state of the environment. We have our commercial activities based on bank financing, but we are also the operator of various programmes, funds entrusted from EU or national funds. We take part in tenders from regional funds. We won two tenders organised by BGK in the Lubelskie Province, where we offer low-interest financing to local authorities, schools, cultural facilities, hospitals, micro, small and medium-sized enterprises to improve energy saving, efficiency and generation of electricity from renewable energy sources. In cooperation with BGK, we also offer products typically aimed at the energy transition. These are the Green Loan and the Ekomax Loan with Guarantee, which use the European Funds for a Modern Economy (FENG) programme. The objectives of this funding are the same as the regional programmes. Anything to do with reducing electricity consumption and generating energy from modern and renewable sources. There is a capital subsidy once certain conditions are met. The green loan can finance up to 100% of the eligible costs. An audit and documentation confirming the achievement of the environmental objective are required. We also have a programme for this, which finances 90% of the documentation and energy audit.
Recently, many companies and the leasing industry have complained that ‘My Electric Car’ has been put on hold. Do you hope that such projects will be continued?
I hope they will continue. BOŚ was the operator for all the leasing companies that participated in this programme. We hope that it will be resumed. In addition to being an intermediary in all these programmes, BOŚ is building its own loan portfolio based on its own funds and its liquidity. The new management is focusing on strongly expanding BOŚ's assets in the mid-term, as we believe that the potential is not fully exploited. Also when it comes to BOŚ's know-how in the field of green financing. We have a thriving team of ecological engineers who provide expert support for our clients at every stage of pro-environmental investments. Every project and working capital financing is assessed in terms of its environmental impact.
You want to work with cooperative banks on ESG and EU funds. What might this consist of?
The cooperation stems from noticing several facts. We have a diverse and stable banking sector in Poland. Co-operative banks have a share of 9-10% of assets, but taking into account the service of local Poland (micro, small and medium-sized companies), it is more than a dozen %. When it comes to agribusiness, it is almost 70%, and local governments of the municipal and district levels are 68%. BOŚ has knowledge and experience in financing pro-environmental projects, and cooperative banks are powerful in local Poland. The energy transformation will not be complete only at the level of the large professional power industry or the leaders of the Polish economy. Everything must come down to the local level. We need to involve all municipalities, counties, small and medium-sized entrepreneurs and agribusiness.
