Responsible Lending Policy of Green Investments in the Energy Sector in Poland

Irena Pyka,Aleksandra Nocoń

doi:10.3390/en14217298

Abstract

The paper concerns the issue of responsible involvement of commercial banks in Poland in green financing of the energy sector. The main reason for undertaking this topic is the observed increased interest of domestic banks in green financing of investments on the energy market in Poland. Therefore, the main objective are to explore the determinants of changes in the level and structure of bank loans under the influence of green investments in the energy sector in Poland. The article verifies the research hypothesis which assumes that an increase in financing green investments by bank loans in the energy market in Poland requires strengthening the synergy of responsible financing of sustainable development of the economy. For this purpose, a two-stage concept of the empirical research was adopted. On the first stage, questionnaire surveys were conducted among the largest Polish commercial banks to examine the respondents’ acceptance degree of the concept of sustainable financing and greening the loan portfolio. On the second stage, case studies were analyzed along with the analysis of selected secondary quantitative data. It was proven that commercial banks in Poland increase their commitment to sustainable financing, which is observed in the sectorally progressing process of “greening” the credit offer. There is also a noticeable change in their approach to social responsibility, especially in the context of the energy market, where financing of traditional, ecologically harmful projects is still dominant. However, this trend is slowly being reversed, towards supporting investments in the area of modern, environmentally-friendly energy solutions. However, “greening” of loan portfolios in the native banking sector requires a responsible lending policy based on various complex business decisions. Increasing their pro-ecological awareness of financing the economy is only a prerequisite, albeit inadequate, of further energy transformation in Poland.

Highlights

A limitation of this sample is that it was determined by the need to have appropriate knowledge in the field of changes, taking place within the bank’s credit offer towards green finance, sustainable finance concept implementation, as well as financing of the energy sector in relation to regulations which have been introduced in recent years
The second stage of empirical studies that was concentrated on quantitative data analysis as well as case studies showed that the banking sector in the last decade was growing, and—in the coming decade—will remain the leader in financing renewable energy in Poland [96]
Data presented in the “Financing of the investments in renewable energy by Polish banks” report showed that the value of “green” lending between 2013–2019 was on the average level of EUR 0.91 billion per year, which accounted for more than a half of the total funds allocated to financing renewable energy sources (RES) installations

Summary

Introduction

Responsible banks’ lending policies undoubtedly represent a new financial category [1,2], and the interest in the scientific, as well as political and business environment is still growing. It was established in close connection with the increasingly dynamically developing idea of sustainable development (SD) that has been functioning in economic theories for a relatively long time [3,4,5,6], but its renaissance has recently been spectacular in EU countries. The reasons for the revival of the concept, aimed at the process of social, economic, and environmental changes ensuring a balance in the fulfillment of the future generations’

Methods

Results

Conclusion