Improving the implementation of the NIP. What is a social-climate plan?

The National Plan for Reconstruction and Increasing Resilience (NIP) has received its second revision, with an implementation document on the issue submitted to the European Commission on Monday, June 24. Meanwhile, a law aimed at streamlining the implementation of the NIP comes into force as early as June 27. The new regulations mainly concern how investments are to be financed and the need to develop a social-climate plan.

The new law will help implement investments under the NIP

Recall that the National Reconstruction Plan was approved by the EC back in 2022. It sets goals for rebuilding and building the country’s socioeconomic resilience after the COVID-19 pandemic. It also identifies necessary structural reforms and investments. In April, the Minister of Funds and Regional Policy, Katarzyna Pe³czyñska-Na³êcz, announced the receipt of PLN 27 billion from the first payment request. A total of nearly PLN 256 billion has been allocated for Poland under the NIP. However, implementation of the Plan requires constant adjustments.

Amendments to the Act on Principles of Development Policy and Certain Other Acts (OJ. of 2024, item. 862) sets out new ways to use the Reconstruction and Resilience Facility (RRF), which is the NPO’s main financial tool. The most important change is the ability to sign and settle contracts in euros, which is expected to help the construction of offshore wind farms in particular. However, this streamlining only applies to investments made in the form of RRF loans.

In addition, the amendment formulates the legal basis for investment entities to incur liabilities. The possibility of financing investments in hydrogen technologies (NIP B2.1.1) with the participation of the Bank of National Economy was also introduced.

Social and Climate Plan: a new challenge for Poland

The amendment, which is coming into force, also refers to the obligation of all EU member states to prepare socio-climate plans. It is envisaged that the draft plan will be prepared by the Minister of Regional Development in cooperation with provincial boards and social and economic partners. The finished document will be adopted by the Council of Ministers and then forwarded to the European Commission.

The social-climate plans are intended to include investments to mitigate the effects of greenhouse gas emission fees on vulnerable households, micro-enterprises and transportation users. The idea is to fight against the so-called “war on terror. “energy poverty,” that is, providing the aforementioned groups with affordable heating, cooling and mobility while supporting the EU’s climate goals.

June 21 this year. A roundtable discussion was held at the Ministry of Funds and Regional Policy on the very preparation of the Social and Climate Plan for 2026-2032. The document is important in that it will be the basis for using the Social Climate Fund, which provides as much as PLN 50 billion for investments in the energy sector. We will use them to finance the transition period between what we have, i.e. an outdated, inefficient energy system, and what we should have, i.e. a modern, clean, cheap and profitable energy system for consumers and the Polish economy. – Minister Katarzyna Pełczyńska-Nałęcz explained.

Revision of the NIP at the European Commission

So far, the NIP has succeeded in launching the Clean Air program, under which the Ministry of Climate and Environment subsidizes the thermal modernization of residential buildings and the replacement of inefficient heat sources with modern ones. In the first half of 2024 alone. w for the implementation of the program has been allocated PLN 1.6 billion. At the same time, initiatives related to, among other things, are being implemented. z:

• expanding access to very high-speed Internet;
• Improving rail traffic safety;
• support for SMEs in agriculture;
• Creating new places in nurseries and children’s clubs.

Later this year, Poland plans to send four more payment requests to the European Commission for tasks carried out under the NIP. In the meantime, however, the Commission has a government draft of the second revision of the NIP on the table (the first was adopted in 2023). The MFiPR succeeded in negotiating 95 percent with the Commission. tasks previously set by the government. The revision is the result of public consultations that government officials conducted from March 15 to April 15 this year. with local governments, the scientific and academic community, public institutions and NGOs, entrepreneurs and employers.

A total of 11 of 55 reforms and 22 of 56 investments have been prepared for change. Most of them involve postponing the implementation date and changing the description of the reforms. However, it also provides for changes in the scope, timing, indicators and method of financing investments from the NIP. The MFiPR minister has already stipulated that in 2025. A third revision of the KPO will be necessary.