Poland’s Air Program Slows as Funding Pushed

Poland’s flagship clean air program faces delays despite government efforts to accelerate implementation amid fraud and capacity issues.

Program Challenges and Fraud

Deputy head of the National Fund for Environmental Protection and Water Management Robert Gajda stated the fund and its “Czyste Powietrze” (Clean Air) program cannot single-handedly solve air pollution. He emphasized the program’s crucial role alongside other initiatives like district heating subsidies. Gajda acknowledged 2024 saw abnormal program operation due to fraud and phantom applications, making it unsuitable for year-over-year comparisons.

While fewer applications were received, their quality improved. Gajda noted negative publicity around the program and cheated beneficiaries deterred some applicants, partly due to EU rules halting gas boiler subsidies (which represented 40% of applications in 2018-2021, dropping to 25% since 2022). Fund employment in regional environmental funds increased by 30-40% to speed up reviews.

New Support Measures

The fund will introduce an energy audit voucher. Though audits became mandatory, the 12,000 zł VAT cost at max subsidy deterred applicants. The voucher aims to help those hesitant to pay upfront. Gajda stressed “Czyste Powietrze” supports vulnerable groups but is not the sole tool, complemented by thermal modernization tax breaks and anti-smog resolutions.

Industry Capacity Limits

Gajda highlighted physical constraints within the industry. Over 579,000 investments were completed by end-December 2025 (approx. 82,000 annually). The sector can physically handle about 100,000 projects yearly. Even 220,000 valid applications in 2024 (plus 50,000 phantom ones) represent work for 2.5 years; the market couldn’t absorb more annually.

Fraud Prevention and Transparency

The fund condemns dishonest practices like aggressive sales and misleading consumers. Information on potential crimes is reported to prosecutors. Beneficiary education stresses not signing contracts on first contact and identifying red flags. The program shifted focus from boiler replacement to mandatory thermal modernization based on energy audits, followed by appropriate heat source installation.

Mandatory operators act as guardians, especially for max subsidies and pre-financing, preventing fraud like falsely reporting boiler removals. Operators verify work completion before payments. Around 60% of municipalities joined the operator program, which will also manage energy audit vouchers, leveraging local social centers to identify those in need.

Support for Cheated Beneficiaries

A new fast-track law, developed with several ministries, protects defrauded beneficiaries. It halts debt collection against victims who reported scams to authorities. The fund will pursue claims from contractors, assuming state agencies have better debt recovery capacity. Delayed payment applications decreased to under 33,000 (value 959 million zł) by end-January from over 40,000 (1.2 billion zł) mid-January.

Average grant value is 62,700 zł, covering heat source replacement and partial thermal modernization. Biomass boilers dominate applications (70-75%), with pumps at 20-25%. Negative publicity harmed pump popularity. Gajja personally favors greater technology diversity but respects beneficiary and market choices.

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