Renewed momentum in Poland’s green transition

The National Fund for Environmental Protection and Water Management (NFEPWM) will be the first institution to implement the ELENA (European Local Energy Assistance) instrument at the national level in Poland. As the leader of green investment financing in Poland, it is launching a new advisory services segment for companies and local governments preparing sustainable investments. On March 3, 2026, in Luxembourg, Ioannis Tsakiris, a vice president at the European Investment Bank, and Dorota Zawadzka-Stepniak, the board president of the NFEPWM, officially acknowledged an agreement for the ELENA National Pilot Program. The project preparation budget is €4.5 million, with €4.05 million provided as grant support from the ELENA facility — a joint EIB and European Commission facility under InvestEU.

Pre-investment support will target local government authorities and heating companies. Increased investments in heating and energy efficiency will lead to energy savings and reduced carbon dioxide emissions. These efforts are part of Poland’s energy transition, with the NFEPWM playing a significant role. In 2026, the fund will allocate 85 percent of its planned green investment budget of €8.8 billion to the energy transition.

After a consultation, the European Commission formally approved the ELENA grant, and it was decided to leverage the NFEPWM’s experience to implement an ELENA pilot mechanism nationally. The fund will combine its experience with the EIB’s established practices under the ELENA instrument. After the pilot phase, the NFEPWM plans to continue and expand the program to include beneficiaries from other sectors.

In 2026, the fund will allocate 85 percent of its planned green investment budget of €8.8 billion to the energy transition.

“The competence center, established as part of the ELENA project, addresses market needs in investment consulting to support Poland’s energy transition. The ELENA program will provide the NFEPWM with a unique range of services in Europe, combining advisory and financial support for future beneficiaries. This initiative aligns with the fund’s strategy for 2025–2028, which focuses on developing advisory services and creating a competence center within the fund, as well as utilizing modern financial instruments,” explains Zawadzka-Stepniak.

ELENA in Poland: pilot project assumptions

Between 2026 and 2029, Polish investors planning thermal modernization of public buildings and upgrades in the heating sector will have access to advisory services. Local government authorities and heating companies will receive comprehensive expert support in preparing their investments. The involvement of relevant experts will facilitate the development of high-quality project documentation, leading to effective funding applications in calls for proposals conducted by the NFEPWM.

The pilot program will support entities that choose not to modernize public buildings or heating plants due to a lack of know-how. It will target new investors who can evaluate the profitability of potential investments, helping to expand the NFEPWM program’s beneficiaries. Some Polish local authorities and heating companies, constrained by limited finances, avoid the risk of inefficient spending on investment analysis, missing the chance to secure support from European funds or the Modernisation Fund. Under the ELENA project, the NFEPWM will reach out to these investors, providing technical assistance and identifying financing opportunities for future projects. This approach addresses the need for local governments to enhance energy efficiency and the requirements for heating companies to adopt more environmentally friendly heat generation methods.

The future beneficiary will gain a partner in the NFEPWM, an expert in preparing technical documentation for co-financing applications and green project funding. Assistance will focus on supporting preparatory processes, including energy audits, feasibility studies, technical documentation, public procurement services and ex-ante analyses.

The transformation of district heating is a priority for change in the Polish economy, making it crucial to enhance the efficiency of district heating systems and increase the use of renewable energy from various sources. More than 15 million Poles are daily users of district heating produced by small municipal heating plants typical of the Central European region. Although the networks are extensive, improving their efficiency is often necessary. The challenges include reducing heat production from coal combustion and minimizing unnecessary heat consumption. Companies are increasingly investing in modern technologies that decrease the release of dust and harmful compounds into the atmosphere. The last 20 years have brought significant changes to the Polish heating sector — carbon dioxide emissions have fallen by nearly 20 percent, the production of harmful dust has been reduced by over 90 percent, sulfur dioxide emissions have decreased by almost 90 percent and nitrogen oxides by over 60 percent.

For nearly 37 years, the NFEPWM has led green transformation financing in Poland, improving the natural environment and quality of life. It has co-financed environmental protection and water management investments totaling nearly 160 billion złoty.

Modernizing the heating sector and improving the energy efficiency of public buildings will reduce greenhouse gas emissions locally and nationally. The ELENA project in Poland will co-finance at least 65 entities in the heating sector. Energy efficiency projects will lower energy consumption, increase renewable energy use and enhance facility comfort. Long-term investments will reduce local government operating costs, improving air quality and residents’ quality of life. The national pilot aims to support analyses and documentation for at least 80 thermal modernization investments in public buildings.

The ELENA instrument is implemented by the European Investment Bank under an agreement with the European Commission. Established in 2009 as part of the Intelligent Energy Europe II program, ELENA provides pre-investment support for sustainable energy, transport and housing. It is an EIB Advisory grant facility, under InvestEU, which supports the preparation of sustainable investments.

As of the end of 2025, the ELENA facility has provided €374 million in grants for 206 projects across the European Union, supporting investments of over €12.7 billion.

For nearly 37 years, the NFEPWM has led green transformation financing in Poland, improving the natural environment and quality of life. It has co-financed environmental protection and water management investments totaling nearly 160 billion złoty. Thanks to the NFEPWM, green investments worth approximately 340 billion złoty have been implemented in Poland. Under the Ministry of Climate and Environment, NFEPWM supports EU environmental and energy policy objectives.

Polish National ELENA Pilot Programme

Co-funded by the InvestEU Advisory Hub of the European Union