How to fund the electrification of industry in Poland? This question was the focus of the workshop organized by the Reform Institute on May 19, 2025. Experts from the banking sector, public administration and industries - including the pulp and paper industry - worked together to find the answer by analysing the profitability of investments, system barriers and available sources of financing.

The conclusions are clear: industrial heat pump technologies are already available, and with rising emissions costs and fossil fuel price fragility, electrification is beginning to make economic sense. The problem does not lie in the lack of financing - companies can reach for both commercial funds and European funds (the 3 main ones are the National Recovery and Resilience Plan, FENiKS and the Modernization Fund). The real issue is low level of energy investments due to the lack of a stable state energy policy, risk aversion, as well as complicated regulations slowing down the transition.

The participants noted the necessity of rapid implementation of a coherent energy strategy, simplification of grid connection procedures and incentives for flexible energy consumption. They also pointed out that financial support, especially for operating costs, would be necessary at least until 2035, after which electrification become economically feasible without subsidies.

Note summarizing the meeting is available for anyone interested in industrial decarbonisation. It presents the key actions needed today to encourage investment and secure the long-term competitiveness of Poland’s industry.

The summary and presentations are available in Polish and can be found here.