Earning green
For example, a little more than a year ago, nine environmental industrialists from Canada came to Poland scouting business opportunities. The buzzword then was "There's money in the local municipalities."
Two companies signed contracts, while most of the rest continue to look for opportunities here. That's the tally from Linda McDonald, commercial counsellor for the Canadian Embassy.
"This is an area where people tend to work together rather than compete, because the pie is so large," McDonald says.
Last year, Poland spent about $1 billion, or 1.3% of the GDP, on environmental projects. That figure should almost double in the near future and some experts estimate Poland must spend around $9 billion in the next five years as business and government struggle to conform to domestic and Western European environmental standards.
By the year 2015, the price tag could total $30-$40 billion.
Where's the money coming from? While the 1991 Paris Club agreement created a $500 million pool funded by international investors, Poland set up its own fund, the National Fund for Environmental Protection and Water Management, and today it's the country's single largest bankroller of environmental projects. Last year, the National Fund spent almost $500 million on projects.
But more important than its disbursement record is the fund's investment strategy. While most of the its resources still come from fees, fines and state budget lines, the fund also intends to generate returns from debt and equity investments in environment-related companies.
An example of the fund's equity investment will become visible this week with the expected announcement of a small $40,000 joint-venture deal with U.S.-based TRC, an environmental engineering firm. The joint venture will set up a database to match Polish environmental needs with U.S. environmental technology providers. While the matchmaking service, at first glance, may not appear the wisest fund investment, it's not the end of the line.
Last fall, the fund negotiated an Ex-Im Bank guarantee on loans from Poland's Environmental Protection Bank that could entice millions in lending activity. As the fund has a 44% stake in the Environmental Protection Bank, the overall scheme starts looking pretty sound.
Two companies signed contracts, while most of the rest continue to look for opportunities here. That's the tally from Linda McDonald, commercial counsellor for the Canadian Embassy.
"This is an area where people tend to work together rather than compete, because the pie is so large," McDonald says.
Last year, Poland spent about $1 billion, or 1.3% of the GDP, on environmental projects. That figure should almost double in the near future and some experts estimate Poland must spend around $9 billion in the next five years as business and government struggle to conform to domestic and Western European environmental standards.
By the year 2015, the price tag could total $30-$40 billion.
Where's the money coming from? While the 1991 Paris Club agreement created a $500 million pool funded by international investors, Poland set up its own fund, the National Fund for Environmental Protection and Water Management, and today it's the country's single largest bankroller of environmental projects. Last year, the National Fund spent almost $500 million on projects.
But more important than its disbursement record is the fund's investment strategy. While most of the its resources still come from fees, fines and state budget lines, the fund also intends to generate returns from debt and equity investments in environment-related companies.
An example of the fund's equity investment will become visible this week with the expected announcement of a small $40,000 joint-venture deal with U.S.-based TRC, an environmental engineering firm. The joint venture will set up a database to match Polish environmental needs with U.S. environmental technology providers. While the matchmaking service, at first glance, may not appear the wisest fund investment, it's not the end of the line.
Last fall, the fund negotiated an Ex-Im Bank guarantee on loans from Poland's Environmental Protection Bank that could entice millions in lending activity. As the fund has a 44% stake in the Environmental Protection Bank, the overall scheme starts looking pretty sound.
