Green technologies require financial backing and supportive regulatory frameworks

At one of the hottest Economic Forums in years, both in terms of temperature and topic, climate change was at the forefront of discussions, making it easy to convince participants that the ecological transition is an urgent necessity.

– If we, as a society – along with businesses, scientists, and local governments – fail to make concrete, decisive choices regarding ecological transformation and the modernization of our energy infrastructure, the situation will inevitably worsen, said Luiz Hanania, President of the Management Board of Veolia Group in Poland. – There is no turning back from the green revolution, and we must take every possible step to ensure its success. I have used the word ‘revolution’ on purpose, as decisive and thorough action is required, said Luiz Hanania.

What the Ecological Transition Barometer says

He explained that Veolia conducted a global survey – the Ecological Transition Barometer – on public perceptions of climate change, revealing widespread recognition of the issue. This highlights the urgency of initiatives to address these challenges. In response, the company launched its new strategic programme for 2024-2027, called GreenUp, aimed at accelerating the shift toward decarbonisation.

– Veolia is committed to decarbonizing all its assets. However, achieving this goal requires the active involvement of various stakeholders, including the public, local governments, banks, and our customers, said Luiz Hanania.

Need for action

The successful implementation of these programs hinges on effective financing mechanisms for decarbonization, water resource management, and waste management. According to the Ecological Transition Barometer survey, which sampled a population representing nearly 60% of the world and 67% of global greenhouse gas emissions, awareness of the climate crisis is rising globally. Two-thirds of respondents reported feeling personally threatened by climate change. In Poland, 70% of those surveyed expressed a sense of vulnerability to climate risks and agreed that the cost of inaction would ultimately outweigh the cost of addressing the environmental crisis.

Paweł Orlof, Vice-President of Veolia Group in Poland, announced that the company will invest EUR 4 billion globally by 2027 to reduce CO2 emissions by 18 million tonnes, save 1.5 billion cubic meters of freshwater, and eliminate 10 million tonnes of waste. – In Poland, Veolia will phase out coal by 2030 and reach climate neutrality by 2050, Orlof stated.

In our country, Veolia operates primarily in the energy sector, overseeing the production and distribution of heat and electricity in numerous towns and cities. The GreenUp programme aims to decarbonise and promote large-scale water conservation, including methods such as wastewater recovery and retention. The Group also targets saving 1.5 billion cubic metres of freshwater by 2027.

Changes in practice

Paweł Orlof highlighted the decarbonisation project for district heating in Poznań as an example. In this case, Veolia invested in an automated Heat Network Management Centre, with the entire Poznań network equipped with metering systems.

– We adjust our production to meet demand, gather data on the network, and eliminate heat losses. As a result, we experience fewer breakdowns and use less fuel to supply heat to our customers, said Paweł Orlof.

In 2021, the company constructed a heat accumulator in Poznań, designed to store heat during the day and release it at night, reducing carbon dioxide emissions by 22,000 tonnes annually. Additionally, Veolia Energia Poznań is developing gas-fired units with a total thermal capacity of up to 214 MW and an electrical capacity of up to 114 MW. Scheduled for commissioning in 2025, these units are expected to reduce CO2 emissions by 35% each year. Other environmentally friendly initiatives include recovering heat from wastewater and greening heat substations.

Another project, Veolia North's Heat Plant of the Future in Lidzbark Warmiński, serves as a model installation capable of sourcing up to 100% of its heat from renewable energy for one of the town’s housing estates, utilising technologies such as heat pumps, three-stage heat storage, and photovoltaics. However, as Joanna Orłowska, a member of Veolia Group's management board in Poland, noted, there is a significant difference between large and small systems. The solutions implemented in Lidzbark are not yet scalable to larger systems, such as those in Warsaw. Orłowska emphasized that scalability depends on available technologies, legislation that defines specific technologies as renewable, and the collaboration of all stakeholders, including public institutions, businesses, and local governments. Effective policies are essential to ensure this level of cooperation.

– What we need is a national strategy to achieve a decarbonised and sustainable electricity and heat system aligned with EU targets. Stable legislation should follow from this strategy. We make investment decisions involving substantial sums, and our projects take years to complete, so regulatory stability is crucial for us, said Joanna Orłowska.

Local governments’ perspective

When asked what is needed for the transformation from the perspective of city authorities, Jacek Jaśkowiak, Mayor of Poznań, emphasized that local officials, in collaboration with suppliers, are seeking various seemingly small heat savings that collectively have a significant impact on the city’s budget. Recovering heat from wastewater has resulted in approximately 7% heat savings, while replacing coal-fired units with gas-fired ones has reduced CO2 emissions by 1.5 million tonnes annually.

The city is focusing on reducing emissions primarily in the areas of heating and transport. – The solution lies in creating 15-minute cities, where people can reach all essential services within 15 minutes, thereby reducing the need for car journeys and even eliminating some trips altogether, said Jacek Jaśkowiak.

The Mayor of Poznań also noted that altering people’s behaviour, lowering home temperatures, and investing in cycling infrastructure could contribute significantly to reducing emissions.

Prof. Marian Gorynia, President of the Management Board of the Polish Economic Society, emphasized the growing importance of natural resource capacities and the critical role of the energy transition in addressing this challenge. He underscored the need for decisive action, dismissing the views of sceptics who claim that the situation will somehow resolve itself. He highlighted that the success of the transition depends on educating the public and implementing regulations that facilitate investment.

Partner: Grupa Veolia w Polsce