Poland has revised its green bond framework in a step that could pave the way for its first sovereign green bond issuance in six years, the country’s finance ministry announced.
The update aligns the framework with the International Capital Market Association’s (ICMA) 2021 principles and pre-issuance checklist, which guide the allocation and reporting of green bond proceeds. The move comes as Poland, one of the European Union’s most coal-dependent economies, seeks to finance its energy transition and climate resilience efforts.
Eligible projects under the updated framework include investments in renewable energy, energy-efficient buildings, clean transport, “green infrastructure” such as low-carbon power grids, and the sustainable management of natural resources, water, and land. The framework also covers climate adaptation and waste water initiatives.
Sovereign green bonds are debt instruments issued by governments to fund environmentally sustainable projects. Poland last entered the green bond market in March 2019.
In January, Karol Czarnecki, head of public debt at the finance ministry, said there was a “high probability” that Poland would return to the green bond market this year, though no details were provided regarding timing or size.
The government’s broader strategy to reduce dependence on coal also saw a step forward on Wednesday when parliament approved legislation to relax restrictions on building onshore wind farms. The bill is intended to accelerate renewable energy development and reduce electricity prices. However, its final passage remains uncertain amid opposition from both the outgoing and newly elected presidents.
Poland is also advancing plans to introduce nuclear power, with its first nuclear unit expected to come online by 2036.
