Grants for the circular economy under the National Recovery Plan in Poland

Who can receive grants for the circular economy in Poland (National Recovery Plan A2.2.1)?

SME projects may include investments to implement environmental technologies relating to:

• • improving raw materials management;
  • increasing energy efficiency;
  • reducing the amount of waste generated;
  • reducing greenhouse gas emissions from production and operational processes.

The call for applications will be conducted by the Polish Agency for Enterprise Development (PARP).

What support can you receive as a grant for the circular economy in Poland (National Recovery Plan A2.2.1)??

The intensity of co-financing for SME investments is up to 85% of eligible costs – depending on the category of the entrepreneur, the location of the project and the subject of the investment.

The minimum value of eligible costs of the project is PLN 896,380. The maximum value of the subsidy for an SME project is PLN 3.5m.

The expected pool of funds to be allocated under the call for proposals for SME projects is PLN 325m.

Funding will be granted under the following aid categories:

• regional investment aid for SMEs;
• aid for consultancy services for SMEs;
• aid for SMEs to support innovation;
• investment aid for:
  • environmental protection, including emission reduction;
  • measures to support energy efficiency other than in buildings;
  • resource efficiency and supporting the transition to a circular economy;
• de minimis aid.

A grant under the circular economy scheme (NRP A2.2.1) may be combined with other support instruments while maintaining the general rules for cumulating public aid.

Additional requirements for grants for the circular economy in Poland (National Recovery Plan A2.2.1)

The aim of the assistance offered is to improve the management of secondary raw materials, increase energy efficiency, reduce the amount of waste generated and reduce greenhouse gas emissions from production and operational processes.

The investment must lead to the achievement of at least two measurable economic or environmental benefits for the applicant and its economic environment from the following areas:

a) increasing energy efficiency in production and operational processes,

b) reducing greenhouse gas emissions,

c) more efficient material management,

d) reducing the amount of waste or reusing or recycling it, including focusing the company’s activities on the zero waste principle,

e) reducing the carbon, water and environmental footprint,

f) optimization of energy consumption,

g) avoiding fines and fees for releasing waste into the environment,

h) greater employee involvement in improving the effects of pro-environmental activities,

i) introducing solutions in the field of: Corporate Social Responsibility – CSR, or solutions regarding the principle: Environment, Social and Governance – ESG, etc.

The assessment of achieving selected benefits will be based on measurable and reliable indicators as part of the investment.

Projects applying for funding should comply with EU (CEAP 2020) and national regulations (“Road map of transformation towards a circular economy“).

The commencement of the investment must be planned no later than 6 months from the date of submitting the application for funding. The investment must be completed before March 31, 2026.

It is necessary to submit an application for funding before starting work on the project. However, commencement of works means the commencement of construction works related to the investment or the first legally binding commitment to order equipment or another commitment that makes the investment irreversible, whichever comes first. The purchase of land or preparatory work, such as obtaining permits and carrying out feasibility studies, is not considered to be the commencement of work.

Additional requirements and project evaluation criteria are published in the competition documentation on the website operated by PARP.

How to apply for grants for the circular economy in Poland (National Recovery Plan A2.2.1)?

The call for applications will be conducted by the Polish Agency for Enterprise Development (PARP). The basic steps to apply for the grant for entrepreneurs may be as follows:

1. Analysis of the entrepreneur’s plans and investment needs for the coming years.
2. Verification whether the subject of the planned investment project qualifies for potential funding.
3. Preliminary verification of the fulfilment of project evaluation criteria and other requirements within the call for proposals.
4. Identify potential alternative and/or additional sources of support for the project and make initial recommendations in terms of securing other forms of public support.
5. Plan the optimal package of grants and tax credits as a source of funding and support for the investment.
6. Preparation of the application documentation including obtaining the required formal documents.
7. Monitoring of the status of the application at the various stages of its assessment and preparation of responses to supplementary documentation at the formal or substantive assessment stage.
8. Signing of the grant agreement and accounting for the grant awarded throughout the investment implementation period.

The action plan is a good introduction to preparing to benefit from this public funding. In practice, many questions or doubts arise and it is crucial to prepare the best possible application documentation, as the interest in obtaining public support is always greater than the available call budget. In such circumstances, doesn’t hesitate to contact me if you need a professional advice.