Poland
A high-level study of specific regional economic, environmental and technical parameters of the Represented Regions
Geographic description of the region
Poland is located in Central Europe. It borders Russia and Lithuania to the north, Belarus and Ukraine to the east, Slovakia and the Czech Republic to the south, and Germany to the west. Poland’s northern border is marked by the Baltic Sea coast. Poland has an administrative area of 312,696 km and a population of 37,636,508 people, which gives population density of 120.36 inhabitants per km². The city with the largest population and, at the same time, the capital of the country is Warsaw. Poland is divided into 16 voivodeships[1], 380 poviats [2] and 2,477 communes, 60% of which are rural communes.
Stretching over 700 km in latitude and 650 km longitude Polish landscape is very diverse, ranging from the sandy Baltic coast in the north to mountain ranges in the south, from grasslands in the west to forested hills in the east. Approximately 30% of the country’s area is covered by forests and about 60% is agricultural land.
Poland is situated in the warm temperate transitional climate zone – it is surrounded by other climate types from the temperate zone: maritime to the west and continental to the east. To the north, it is adjacent to a cool temperate climate zone, while a warm Mediterranean climate predominates in the southern part of Europe.
[1] Voivodeship is the highest-level administrative division of Poland, equivalent to province.
[1] Poviat is the second-level unit of local government and administration in Poland, equivalent to a county, district or prefecture.
Agriculture and forestry sectors in the region
Agricultural sector
In 2020, Poland had 14,952,885 ha of agricultural land, of which 11,149,636 was arable land. Almost 50% of the agricultural area constitute cereal crops. There are more than 1.3 million agricultural holdings in Poland, 39,000 holdings with an area of more than 50 ha, 106,000 holdings with an area between 20 and 50 ha, 485,000 holdings between 5 and 20 ha, 662,000 holdings between 1 and 5 ha and 26,000 holdings with an area up to and including 1 ha. In 2020, units engaged only in crop production dominated, accounting for 55.8% of the total number of farms, while farms engaged only in livestock production accounted for 0.6%. Farms with mixed production (both crop and animal production) accounted for 43.6% of total number of farms. In 2020, the agricultural sown area amounted to 10,742 thousand hectares, of which 7,411 thousand hectares were cereals and 1,294 thousand hectares were industrial crops. The remaining agricultural land is covered by orchards – 327 thousand ha and permanent grassland – 3,190 kha. The average size of agricultural land per farm in the country in 2023 was 11.42 ha (Statistics Poland, 2021).
Animal husbandry sector
The animal husbandry sector in Poland is mostly focused on the breeding of cattle, swine and poultry, but there are also other animals such as goats, sheep, horses and others. Table 1 shows the population of the main livestock in Poland.
Table 1: Livestock population in 2023 (Source: Central Statistical Office).
Country | Cattle | Swine | Poultry | Sheep | Goats |
Poland | 6,267,461 | 9,769,697 | 218,302,793 | 270,492 | 60,897 |
Forestry sector
Poland is at the forefront of Europe in terms of forested area. Currently, Poland’s forests cover 9.2 million hectares, which gives coverage of 29.6%. At the end of 2021, Poland had 0.243 hectares of forest per capita. According to Statistics Poland, the area of deciduous forests in Poland in 2020 was 2,928,193 ha, while coniferous forests covered 6,330,650 ha. The ownership structure of forests is dominated by public ownership. At the end of the analysed year, public forests constituted 80.7% of the total forest area, including 76.9% of the total forest area under the management of the State Forests. Private forests occupied the remaining 19.3% of the forests in Poland. Forests and forest land constitute one of the most important and valuable natural objects under legal protection. At the end of 2021, the area of forest land within national parks was 193,200 ha (i.e. 2.0% of the national forest land area) and occupied 61.3% of the total area of the parks. At the end of 2021, the status of protective forests, i.e. forests with non-productive functions, was held by 3,912,600 ha of forests (42.2% of the forest area in the country), 97.6% of which was under the management of the State Forests (3,816,900 ha) (Statistics Poland, 2022).
According to data from Statistics Poland, 42.2 million m3 of timber was harvested in Poland in 2021, i.e. by 6.5% more on an annual basis. Timber harvesting in Poland is dominated by coarse wood (40.7Mm3) – a share of approximately 96%. Small-sized timber, of which 1.6 Mm3 was harvested, is of marginal importance (4%). Nearly 97% of the total coarse wood mass was harvested in forests managed by the State Forests (National Forest Holding), and about 3% in private forests. Wood is an important raw material for the Polish economy. Industries related to the processing of this raw material, i.e. the production of wood products, the paper industry and the furniture industry, accounted for approximately 9.5% of the industry’s production sold in 2020 (Ministry of Climate and Environment, Rep. of Poland, 2022).
Table 2: Detailed information in Poland.
Location | Forestry area |
Poland | 9.2 million hectares |
Species | Deciduous and coniferous forests |
Agroindustry
According to data from the National Support Centre for Agriculture (KOWR), the value of Polish food exports abroad in 2021 reached a record 37.4 B€, which gives a 9% year-on-year increase. More than 70% of Polish agri-food exports go to EU markets. Poland is a leading producer of fruit (apples, raspberries, blackcurrants, blueberries), meat (poultry, pork), dairy products and mushrooms. The indigenous processing industry is known for its diversity, including tobacco production as well as alcohol production in the long list of food products. The agri-food products that generated the largest export revenues in 2021 were poultry meat and offal, bakery products, chocolate products, animal feeds and fodder, beef meat, smoked, dried and salted fish, cheese and cottage cheese, wheat, pork meat, or fruit and vegetable juices and mineral waters. Large revenues were also obtained from the export of cigarettes and other tobacco products. (Polish Investment and Trade Agency, n.d.)
Economic Indicators
Poland positions itself as the third largest economy in Europe with a gross domestic product (GDP) exceeding 747M€. However, GDP per capita is 20,210€. Regarding the production structure in terms of gross value added (GVA), in 2023 the agricultural sector, forestry and fisheries generated 21.91M€. Poland has an employment rate of 77.9%. The number of people employed in activities related to agriculture, forestry and fishing is 1.42 million. Dividing this value by the total population gives an employment rate in this sector at the level of 3.86%. (EU Rural Observatory, 2024)
According to the JRC, in 2021, Poland’s bioeconomy generated around 159 B€ in turnover (6% of the EU-27) and 40B€ in value added (5% of the EU-27). The number of people employed in the biomass and processing sectors in Poland was 2.4 million (14 % of the EU-27). The average productivity of the Polish bioeconomy sectors can be described as follows:
- turnover per person employed: approximately 66,000€ (EU27 average: 147,000€),
- value added per person employed: about 16,000€ (EU average: 42,000€).
Among the bioeconomy sectors in Poland, agriculture and the food sector employed the largest number of people, 1.46 million and 475,000 respectively. Electricity bio-products and liquid biofuels employed the lowest numbers, 207,000 and 422,000 people respectively. The highest turnover and value added to the economy among the bioeconomy sectors in Poland was the food and beverage sector, second was agriculture, third wood products and furniture, and fourth was the paper industry. Fisheries and aquaculture and bio-based energy products had the lowest turnover and value added (JRC, 2024).
Table 3: Economic indicators by country (Source: European Union, “Rural Observatory”).
| Population (M hab) | GDP (M€) | GDP per capita (€) | GVA (M€) Agriculture, Forestry and Fishing | Employment rate (%) | Employment by sector (%) Agriculture, forestry, and fishing |
Poland | 36.75 | 747.75 | 20,210 | 21,91 | 77.9 % | 3.86 % |
Bioeconomy regulatory framework
In Poland, the EU bioeconomy goals are to some extent covered by national strategies related to agricultural, environmental and energy policies, and regional strategies include smart specialization strategies. At the national level, Poland has several bioeconomy development strategies:
National Energy and Climate Plan for the years 2021-2030; the main goals of this energy and climate strategy of Poland, representing the future measure of its implementation, are: a reduction target for Poland in terms of greenhouse gas emissions in non-ETS sectors has been set at -7% in 2030 compared to 2005 levels. The set target is to be achieved through emission reductions in transport, construction and agriculture, taking into account the beneficial effects of CO2 sequestration by ecosystems as well as flexibility in land use, land use change and forestry (LULUCF- an EU-wide target for 2030, in which Poland declares to achieve a 21-23% share of RES in gross final energy consumption by 2030, where the share of RES in heating and cooling is estimated to increase by an average of 1.1% per year, while the share of renewable energy in transportation is expected to reach 14% by 2030, a national energy efficiency improvement target for 2030 set at a 23% reduction in primary energy consumption compared to the PRIMES 2007 forecast (Ministry of Climate and Environemnt, Rep. of Poland, 2024).
National Smart Specialisation Strategy aiming to enable each region to identify and develop its own competitive strengths. The support provided relates to the development of research, development and innovation (https://smart.gov.pl/pl/). In Polish National Smart Specialisation Strategy (KIS), among the 13 found smart specializations, three of them are directly related to the bioeconomy. KIS priorities related to the bioeconomy covering agri-food, forestry and environmental specialization include: (KIS 2) Innovative technologies, processes and products of the agricultural and forest-wood sector; (KIS 3) Biotechnological and chemical processes, bioproducts and special products of chemical and environmental engineering; (KIS 7) Circular economy (Ministry of Economic Development and Technology, Rep. of Poland, 2022).
Roadmap on circular economy, Poland’s adopted roadmap for the transition to a circular economy (GOZ). This concept aims to rationally use resources and reduce the negative environmental impact of manufactured goods, which, like products and raw materials, should remain in the economy as long as possible, and waste generation should be minimized as much as possible (Interreg Central Europe, 2024).
Polish National Strategy for Adaptation to Climate Change (NAS2020) with the perspective by 2030 the main goal of NAS2020 is to ensure sustainable development and effective functioning of the economy and society under climate change conditions. The main objective will be achieved through the implementation of specific objectives and the NAS2020 directions of action indicated within these objectives. The specific objectives include: ensuring energy security and good state of the environment, -effective adaptation to climate change in rural areas, development of transportation under climate change conditions, ensuring sustainable regional and local development taking into account climate change, stimulating innovation for climate change adaptation, shaping social attitudes towards climate change adaptation (Ministry of Environment, Rep. of Poland, 2013).
Strategy for Sustainable Rural Development, Agriculture and Fisheries 2030 assumes: maintaining the principle that family farms will be the basis of the agricultural system; supporting the sustainable development of small, medium and large farms; making greater use of the potential of the agri-food sector through the development of new skills and competencies of its employees, as well as through the use of the latest technologies in production and the application of digital solutions, and creating favourable conditions for developing innovative products; building the competitive position of Polish food on foreign markets, the hallmark of which will be high quality and reference to the best Polish traditions, as well as the adaptation of agri-food products to changing consumption patterns (e.g. growing interest in organic food); conducting agricultural and fish production with respect for environmental protection principles and adapting the agri-food sector to climate change, among other things, in terms of access to water; dynamic development of rural areas in cooperation with cities, which will result in stable and sustainable economic growth, providing every rural resident with a decent job and urban residents with access to healthy Polish food; creating conditions for improving the occupational mobility of rural residents and for them to take advantage of opportunities for development and re-skilling, resulting from the emergence of new economic sectors (e.g. bioeconomy) (Ministry of Agriculture and Rural Development, Rep. of Poland, 2022).
The National Environmental Policy 2030 is a strategy for development in the area of environment and water management, designed to ensure Poland’s environmental security and high quality of life for all residents (Ministry of Climate and Environment, Rep. of Poland, 2020).
Energy Policy of Poland until 2040 (PEP2040) sets the framework for the country’s energy transition. It outlines solutions to achieve the EU’s climate and energy goals, such as the construction of offshore wind power or the launch of the country’s first nuclear power plant planned for 2033. PEP2040 focuses on equitable and inclusive energy transition towards a zero-emissions system based on innovation, sustainable economic growth, increased efficiency and competition. The final key factor is improving air quality nationwide. Achievement of these goals should be measured in the 2030 timeframe by (I) a maximum 56% share of coal-fired generation (with a conservatively estimated 2049 exit date); (II) a minimum of 23% renewable electricity in final consumption (32% in generation, 14% in transportation); (III) nuclear generation included in the mix by 2033; (IV) reduction of greenhouse gas (GHG) emissions by 30% (compared to 1990 levels); (V) reducing primary energy consumption by 23% (in relation to 2007 estimates) (IEA, 2022).
Table 4: Existing national Bioeconomy related strategy documents in Poland [16]
Name of the strategy | Bioeconomy related goals* addressed | ||||
(1) | (2) | (3) | (4) | (5) | |
National Energy and Climate Plan for the years 2021-2030 | + | + | |||
National Smart Specialisation Strategy | + | + | + | ||
Roadmap on circular economy | + | + | + | + | |
Polish National Strategy for Adaptation to Climate Change (NAS2020) with the perspective by 2030 | + | + | + | ||
Strategy for Sustainable Rural Development, Agriculture and Fisheries 2030 (SZRWRiR 2030) | + | + | + | + | + |
National Environmental Policy (PEP2030) | + | + | + | + | |
Energy Policy of Poland until 2040 | + | + | |||
*Is one of the EU bioeconomy strategy (2018) objectives covered by the bioeconomy related strategy at national level? Creating jobs and maintaining competitiveness in bioeconomy sectors (1); Reducing dependence on non-renewable resources (2); Mitigating and adapting climate change (3); Ensuring food security (4); Managing natural resources sustainably (5). | |||||
Biomass resource availability
Agricultural biomass residues
Based on the estimates, it can be calculated that nearly 22 million agricultural biomass residues were produced in 2023. As shown in Figure 4, grass and straw were considered, accounting for more than 90% of total agricultural residues biomass. Figure 5 shows the breakdown of biomass produced by voivodeship.
As can be seen in the graphs, most of the biomass generated comes from straw, with the most important being that from lubelskie, mazowieckie, wielkopolskie and dolnośląskie voivodeships. In terms of the geographical area with the highest concentration of biomass, the east of the country stands out. On the other hand, the south is the area with the lowest biomass generation.
Livestock biomass
Livestock including cattle and pigs alone are estimated to have generated 63 million tonnes of biomass in 2020, with cattle biomass production dominating in all voivodeships, accounting for 90% of total livestock biomass. The largest amount of livestock biomass, i.e. manure and slurry, was produced in wielkopolskie, podlaskie and mazowieckie voivodeships.
Agro-industrial residues biomass
The data presented consider the amount of waste in Poland in 2023 generated from agriculture, horticulture, hydroponics, fishing, forestry, hunting and food processing. This group of waste is divided into two subgroups, namely animal by-products and food by-products. The total amount of biomass produced from the agricultural industry is 7.59 tonnes, of which 5 tonnes come from food processing and the remaining 2.59 tonnes from animal by-products.
Forestry biomass
Timber harvesting comprises activities involved in cutting down trees and obtaining wood material from its various parts (from the trunk, crown and stump/rootstock), and sorting this material into specific wood categories. As a result of these activities, woody biomass is produced, which must be removed from the forest, as it is a serious risk factor for the spread of pests and forest fires. In 2022, a total of 44,647,000 m3 of timber was harvested, of which 42,703,000 m3 was coarse wood, while the remaining 1,944 m3 was small-sized wood, and only 0.8 m3 was stumpwood.
Management and logistics of biomass resources
Logistical processes ensure a stable feedstock base for biomass energy producers. In many cases, obtaining biomass is difficult due to dispersed nature of feedstock. For these reasons, large amounts of investment in harvesting, transportation, storage and processing are required. Therefore, an efficient logistics system for the reduction of transportation and further processing costs is so important. Factors to be taken into account in the logistics system are related to the type of biomass, physical-chemical and mechanical characteristics of biomass, availability of raw material, number of suppliers of a given type of biomass, technical possibilities of transportation, storage possibilities, pre-treatment before conversion process, economic, legal, environmental conditions, etc., as well as location of energy production sites. The utilization of biomass requires taking action along the entire supply chain involving: feedstock acquisition, production, distribution and use of biomass, including transportation and storage. Taking the source for energy production as a criterion, we can distinguish the complete supply chain management (CSCM) group with solid and liquid biomass as the energy source. The complete supply chain (CSC) includes the procurement process, that is, the supply of raw materials and materials for energy production and maintenance, the energy production and the energy distribution. From the point of view of logistical processes, it is important for the raw material to be supplied continuously. Therefore, management refers to all the processes and actors in the chain, which should be interrelated. The goal of supply chain management is to increase efficiency while reducing storage and operating costs and aligning energy production with customer needs.
Safe management should consider the following:
- supply (supply management of raw materials, inventory, supplier relations, supplier base),
- operational control (customer relationship management, production management, supply/distribution network design),
- integration (strategic management, infrastructure, risk, measurement, performance, environmental management).
When considering security issues in biomass supply chain management from a logistics perspective, the following conclusions can be mentioned:
- efforts should be made to optimise organizational and logistical models for stable biomass supply and sustainable rural development;
- to avoid the movement of large masses of biomass over long distances, it is reasonable to create local biomass markets and logistics systems that minimize the costs of biomass procurement, transportation and storage;
- implementation and certification of biomass quality assurance systems can have a significant impact on the security of supply of such a diverse raw material;
aiming to increase biomass in the balance of electricity production in the country, due to the high cost of investment requires the use of appropriate support systems, which guarantee their systematic development (Krupnik, 2019).
Bio-products target market
Bioenergy and biofuels sector
In Poland, there is a great potential for the development of the biogas sector, including the production of biomethane. Poland has its own feedstock supplies and developed biofuel production chain. Biomass streams from agriculture, forestry and hunting, as well as fishing and aquaculture offer adequate potential for advanced energy use. Biofuel production sectors are mainly related to the agro-food industry, forestry and green energy. The production of biofuel components, i.e. bioethanol or biodiesel, is limited by a percentage cap. Each time the limit is increased, the market grows. Although, even in the current situation in Poland (with a significantly low share of bio-components in biofuels), there are still potential opportunities for the development of the biofuel sector. The challenges are, for instance, technological limitations and improving product quality through the use of innovation.
In Poland’s case of biogas production (especially agricultural biogas), there is considerable untapped potential for the development of this sector. A period of growth between 2011 and 2016 was followed by stagnation, which is mainly due to legislative barriers and unstable public support. There are promising innovations in Poland (e.g., in the biogas production) showing that the zero-waste path in the circular bioeconomy can yield favourable results in terms of waste conversion (Kaszycki, et al., 2021).
- Biomass electricity generation
According to data from the Energy Regulatory Office (URE) (URE, 2023) on the installation of renewable energy sources, at the end of 2023, in Poland, there were 46 biomass-burning power plants with a total installed capacity of 1,250.077 MW and 31 installations with co-incineration of conventional fuels and biomass or biogas with total installed capacity of 13,534.913 MW.
- Biogas generation
According to the biogas map for 2023/2024, there are 310 biogas plants in Poland with a total installed capacity of 215 MW. Of these, 149 biogas plants use municipal waste, with a total installed capacity of 63.9 MW. The remaining 161 biogas plants use agricultural waste, with a total installed capacity of 151.7 MW (Magazyn Biomasa, 2024).
On the other hand, data from the Energy Regulatory Office (URE) on renewable energy installations show that at the end of 2023, 388 biogas plants with a total installed capacity of 295.262 MW were registered.
- Thermal use
According to data from the Energy Regulatory Office (URE) on renewable energy installations, as of the end of 2023 there were 10 registered thermal waste conversion installations with a total installed capacity of 171.461 MW.
Table 5: Thermal waste treatment installations in Poland [21]
Location | Voivodeship | Power (MW) | Type |
Zabrze | śląskie | 76,500 | thermal conversion of waste |
Rzeszów | Podkarpackie | 8,993 | thermal conversion of waste |
Poznań | Wielkopolskie | 19,635 | thermal conversion of waste |
Szczecin | Zachodniopomorskie | 15,481 | thermal conversion of waste |
Bydgoszcz | kujawsko-pomorskie | 13,800 | thermal conversion of waste |
Kraków | małopolskie | 16,900 | thermal conversion of waste |
Konin | wielkopolskie | 7,300 | thermal conversion of waste |
Białystok | podlaskie | 9,002 | thermal conversion of waste |
Warszawa | mazowieckie | 2,600 | thermal conversion of waste |
Płock | mazowieckie | 1,250 | thermal conversion of waste |
- Biofuels
Liquid biofuels are a set of products that include biobased, biodiesel and other bio liquid fuels called bioliquids, which are used for energy purposes other than transportation, including electricity generation, heating and cooling. Between 2018 and 2022, there was an increase in the acquisition of liquid biofuels by 19.4% (from 37.9 PJ to 45.3 PJ), in total domestic consumption by 18.3% (from 38.3 PJ to 45.3 PJ) and imports by 22.0% (from 15.7 PJ to 19.1 PJ). There was, however, a decline in exports – 8.6% (from 14.6 PJ to 13.3 PJ). In 2022, biodiesel consumption was 36.7 PJ, accounting for 81.0% of liquid biofuel consumption. From 2018 to 2022, biodiesel consumption grew, while bioethanol and bioliquids consumption remained at similar levels (Statistics Poland, 2023).
In summary, the directions adopted in the Polish strategy for a circular bioeconomy are concerned with the management of biomass throughout its life cycle, including processing, production of goods (food, feed, energy, etc.), sale of goods, their use and management of bio-waste. In this sense, the bioeconomy is the basis for the functioning of the first sector of the economy, i.e. agriculture, forestry and fishing, as well as several branches of the second sector (food, feed, forest-wood, pulp and paper, pharmaceutical, textile, furniture, construction, biotechnology, cosmetics, fuel and organic recycling industries). The closed-loop economy (GOZ) stipulates that the key is to keep biomass in the economic cycle for as long as possible, thus maximizing its value. Direct burning of biomass, widely used in Poland, is not part of the GOZ. Instead, the GOZ focuses on two priorities: creating conditions for the development of the bioeconomy in Poland, and measures to foster the creation of local industrial and energy value chains (IUNG, 2024).
R&D system associated with biomass valorization
In Poland, the Ministry of Agriculture manages 12 research institutes, five of which conduct research on field crops, including organic farming. In addition, there are also institutes conducting research on field horticultural crops, livestock production, and fisheries. Agricultural economic analysis and research, including FADN data, is provided by the Institute of Agricultural and Food Economics. Research in agri-food biotechnology, safe food production and storage is conducted by the Institute of Agriculture and Food Biotechnology of the Polish Academy of Sciences (PAN). Strategic research in rural areas is conducted at the Institute of Rural and Agricultural Development of the Polish Academy of Sciences in Warsaw (IRWiR PAN), while the Institute of Agrophysics in Lublin is involved in the research on soil-plant-atmosphere system interactions, as well as strategic planning and policy. The leading research institution in bioproducts or biomass processing is the Lukasiewicz Research Network, which includes 22 research institutes across Poland. Some of the institutes are included in research group called Sustainable Economy and Energy, which focuses on bioeconomy and recovery of materials (Kozyra, et al., 2023).
Table 6: Research Institutes focused on agriculture and bioproducts biomass processing (Source: Concept Paper For Bioeconomy: Poland).
Group’s main research areas | Institution |
Field crops, organic farming | Institute of Soil Science and Plant Cultivation |
Plant Breeding and Acclimatization Institute | |
Institute of Natural Fibres and Medicinal Plants | |
Institute of Plant Protection | |
Institute of Technology and Life Science | |
Horticultural field crops research | Institute of Horticulture |
Research on animal production | Institute of Animal Production |
National Veterinary Institute | |
Fishery | Inland Fisheries Institute in Olsztyn |
Marine Fisheries Research Institute | |
The agricultural economic analysis and research including FADN | Institute of Agricultural and Food Economics |
Research on agri-food biotechnology, safe food production and storage | Institute of Agriculture and Food Biotechnology of the Polish Academy of Sciences |
Strategic research on rural areas | Agricultural Development of the Polish Academy of Sciences in Warsaw |
Soil-plant-atmosphere related system interaction science and strategic planning and policy | Institute of Agrophysics in Lublin |
Consulting activities in the field of establishment of energy crops, the logistics of biomass, economic aspects and processing | Polish Biomass Association |
In Poland, there are 10 universities with agricultural faculties, 8 with forestry faculties and 2 with fisheries/aquaculture faculties. Bioeconomy is a subject of study at 7 universities. At the secondary level, the Ministry of Agriculture oversees 61 agricultural technical colleges, while the Ministry of the Environment oversees 11 technical colleges related to forestry and wood processing.
Table 7: Polish universities with the subject of bioeconomy (Source: Concept Paper For Bioeconomy: Poland).
Name of entity |
University of Warmia and Mazury in Olsztyn – Centre for Bioeconomy and Renewable Energies |
Warsaw University of Life Sciences |
University of Agriculture in Krakow |
Lodz University of Technology |
Warsaw University of Technology |
Military University of Technology in Warsaw |
Wroclaw University of Environmental and Life Science |
Support and financing policies
Funding institutions in Poland are not oriented toward a specific area of the bioeconomy. Activities in this area focus on sectors or elements that can contribute to the bioeconomy. Start-ups seek funding mainly from Venture Capital (VC) funds. Despite the fact that the Venture Capital market in Poland is growing rapidly, existing companies from bioeconomy sectors develop mainly by using funds received from bank loans or grants. European funding for venture capital investments in Poland largely passes through state financial and administrative institutions (PFR, NCBiR). These institutions have built mechanisms for allocating European funds to the private sector and are managed by entities with experience and knowledge in the area of start-up development.
EU funds launched in Poland under the Common Agricultural Policy and the Common Fisheries Policy (2014-2020), mainly supporting bio-economic sectors such as agriculture and fisheries, were distributed in the funding perspective mainly by the Agency for the Restructuring and Modernization of Agriculture. The Agency, as the executor of agricultural policy, works closely with the Ministry of Agriculture and Rural Development and is the implementer of aid instruments financed by the following EU funds: European Agricultural Guarantee Fund (EAGF), European Agricultural Fund for Rural Development (EAFRD), European Maritime and Fisheries Fund (EMFF). (Kozyra, et al., 2023)
At the European level, the public funding program “Horizon Europe” can be distinguished. Horizon Europe’s program in cluster 6 is entitled “Food, Bioeconomy, Natural Resources, Agriculture and Environment,” and is designed to provide opportunities to strengthen and balance environmental, social and economic goals and redirect human economic activity on a path towards sustainable development (National Contact Point for EU Research Programmes, 2023).
The Ministry of Funds and Regional Policy is responsible for the implementation of European Funds in Poland. It is its task to coordinate the implementation of the assumptions arising from the most important document describing how and for what European Funds will be allocated in 2021-2027 – the Partnership Agreement. A managing authority has been designated for each program. It is responsible for the preparation of the program and its management. The managing authority for national programs and territorial cooperation programs is the Ministry of Funds and Regional Policy (Ministry of Funds and Regional Policy, Rep. of Poland, 2023).
PFR Ventures is a Development Finance Institution dedicated to investment financing. The institutional company is part of the Polish Development Fund (PFR), which is wholly owned by the government. The sole investor is the Government of the Republic of Poland, either directly or through the Polish Development Fund or the Polish Development Bank (BGK). PFR Ventures distributes funds raised from: European Funds (2014-2020: Intelligent Development and Innovative Economy), Ministry of Economy, Swiss Contribution, and own funds.
Another institution under the Ministry of Agriculture and Rural Development is the National Centre for Agricultural Support (KOWR). It is an executive agency tasked with implementing and applying instruments of support for active agricultural policy and rural development, for the benefit of Polish farmers and other entities operating in the agri-food sector, while providing competent service. (Serwis Rzeczypospolitej Polskiej, 2024).
National Centre for Research and Development (NCBiR) – it is a centre for the support and development of innovative technological and social solutions, creating an ecosystem of knowledge and information about innovations. One of NCBiR’s tasks is the duty to efficiently disburse and account for innovation grants awarded, as well as to provide substantive support to beneficiaries and grantees implementing projects with EU funds. NCBR is an Intermediary Institution for the transfer of funds under operational programs, namely: European Funds for a Modern Economy 2021-2027 (FENG), the Intelligent Development Program 2014-2022 (PO IR), the Knowledge Education Development Program 2014-2020 (PO WER) and the Digital Poland Program (PO PC) Grantee. NCRD finances R&D projects for various sectors, including bioeconomy, e.g. for strategic programs BIOSTRATEG, GOPOSTRATEG. They offer grants for research and innovation activities in biotechnology, agriculture and forestry (Serwis Rzeczypospolitej Polskiej, 2024).
Table 8: Funding programmes identified in the agri-food sector at national level.
Programme | Funding organization | Type | Web |
Rozwój małych gospodarstw | Polska Agencja Pozyskiwania Funduszy Unijnych Sp. z o. o. | Investment fund | |
Młody rolnik | Polska Agencja Pozyskiwania Funduszy Unijnych Sp. z o. o. | Investment fund | |
Inwestycje zwiększające konkurencyjność | Polska Agencja Pozyskiwania Funduszy Unijnych Sp. z o. o. | Investment fund | https://www.papfu.pl/inwestycje-zwiekszajace-konkurencyjnosc-wrzesien-2024/ |
Inwestycje przyczyniające się do ochrony środowiska | Polska Agencja Pozyskiwania Funduszy Unijnych Sp. z o. o. | Investment fund | https://www.papfu.pl/inwestycje-przyczyniajace-sie-do-ochrony-srodowiska/ |
Inwestycje poprawiające dobrostan bydła i świń | Polska Agencja Pozyskiwania Funduszy Unijnych Sp. z o. o. | Investment fund | https://www.papfu.pl/inwestycje-poprawiajace-dobrostan-bydla-i-swin/ |
Operational groups characterization
The Polish Rural Network + (PRN+) is a partnership network for information exchange and cooperation between public and private organizations. Its goal is to bring together representatives of the agricultural sector, agricultural advisors, researchers, entities involved in implementing innovations and other actors working for the development of agriculture, including increasing its competitiveness and improving the quality of life of the residents of rural areas and small towns.
According to the EPI-AGRI project database from the Polish Rural Network + (PRN+), 420 groups were funded in Poland between 2014 and 2020. The database includes projects whose main source of funding is the 2014-2020 Rural Development programs, but also 9 projects from CAP SP 2023-2027. Of all the groups, 16 fall into the category of “Rational management of natural resources, climate and environment,” i.e. the most relevant to BBT.
The National Strategic Plan of the Common Agricultural Policy for 2023-2027 offers Polish farmers, entrepreneurs and advisory units (in addition to the well-known from previous financial periods) mechanisms of subsiding their activities and development investments, the possibility of help under Intervention 13.5. “Cooperation of EIP Operational Groups”, which provides for an allocation of 168,950,000 €. Thanks to this intervention, it is possible to finance the establishment of Operational Groups of the European Innovation Partnership for Efficient and Sustainable Agriculture (OG) and to develop and implement innovative projects as a part of the activity of these groups, with prioritisation of the farmers’ needs, combining various partners with relevant knowledge in complementary fields and based on an interactive and adaptive model of innovation (Polish Rural Network+, 2024).
Error! Reference source not found.14 below shows the total budget of OG projects in the period under review. It can be seen that it develops similarly for the total number of subsidized projects. The average budget per project is 502,369 €, the maximum and smallest amount of funding is 6,100,555 € and 50,842€ respectively.
Bio-based Technologies (BBT) developed by OGs
This section presents in more detail some technological aspects regarding the BBTs developed by OGs mentioned in the above section. It is important to note that, since some OGs are relatively new, there is still not much information available in their websites or they do not have a web yet.
First of all, the type of biomass used is analysed. For this analysis, the 22 OGS working in BBTs development were considered. The majority of projects used biomass related to livestock, the second most numerous were projects that use fruits biomass. Finally, the rest is distributed over different types of biomasses (See Figure 15).
Moreover, the bio-products obtained from the processing of the biomasses considering the 22 identified BBTs were analysed. As many as 50% of the technologies (11) generate different kind of food or feed. It is important to note that although some OGs use the same biomass, they generate different bio-products.
Finally, the type of processing methods (physical, chemical, and biological) was analysed. Only 14 BBTs were considered for this analysis, and as can be seen in figure 17, most of the technologies developed used biological processing methods.
As expressed in the present report, Poland is the eighth country in the European Union in terms of the number of OGs, although the number of groups developing BBTs is low. Poland has not yet developed a bioeconomy strategy, only some regions have it in their overall plan. However, over time, a change in the participation of BBTs in the OG is visible.
In terms of available funding and R&D system associated with biomass valorisation, we have highlighted the different programmes available at different levels (European, national, and regional), both public and private, and we can observe the large increase in this aspect in the recent years.
Most of the OGs, namely 212, concern the area of “Short food supply chains and local markets”, 111 are related to Plant cultivation, 69 concern Livestock, 19 Agri-food processing, 3 Organic farming, 3 Digital solutions, 16 Rational management of natural resources, climate and environment, and 1 Rural development.
In conclusion, Poland can be classified as yellow because, although the country has high potential, there is still a lot of work to be done before it can be considered green.
EU Rural Observatory, 2024. European Union, “Rural Observatory”. [Online]
Available at: https://observatory.rural-vision.europa.eu/place?lng=en&ctx=RUROBS&is=Default&ts=RUROBS&cl=rural&tl=0&tu=PL&stu=PL&clc=highlights&fvs=false
[Accessed 09 07 2024].
IEA, 2022. International Energy Agency. [Online]
Available at: https://www.iea.org/policies/12882-energy-policy-of-poland-until-2040-pep2040
[Accessed 09 07 2024].
Interreg Central Europe, 2024. Polish Roadmap for Transformation Towards a Circular Economy. Ministry of Development, Warszawa, 2019. [Online]
Available at: https://www.interreg-central.eu/news/polands-roadmap-towards-the-transition-to-the-circular-economy/
[Accessed 09 07 2024].
JRC, 2024. Data-Modelling platform of resource economics, European Commission. [Online]
Available at: https://datam.jrc.ec.europa.eu/datam/mashup/BIOECONOMICS/index.html
[Accessed 09 07 2024].
Kaszycki, P., Głodniok, M. & Petryszak, P., 2021. Towards a bio-based circular economy in organic waste management and wastewater treatment – The Polish perspective. New Biotechnology, Volume 61, pp. 80-89.
Kozyra, J. et al., 2023. Strategic concept paper for bioeconomy in Poland: executive summary. Open Research Europe, 217(3), pp. 1-7.
Krupnik, D., 2019. Bezpieczeństwo zarządzania łańcuchem dostaw biomasy. Ekonomika i Organizacja Logistyki, 4(2), pp. 41-53.
Magazyn Biomasa, 2024. Magazyn Biomasa. [Online]
Available at: https://magazynbiomasa.pl/mapa-biogazowni-rolniczych-w-polsce-sprawdz-koniecznie/
[Accessed 09 07 2024].
Ministry of Agriculture and Rural Development, Rep. of Poland, 2022. Strategia zrównoważonego rozwoju wsi rolnictwa i rybactwa 2030, Ministerstwo Rolnictwa i Rozwoju Wsi. [Online]
Available at: https://www.gov.pl/web/rolnictwo/strategia-zrownowazonego-rozwoju-wsi-rolnictwa-i-rybactwa-2030
[Accessed 09 07 2024].
Ministry of Climate and Environemnt, Rep. of Poland, 2024. National Energy and Climate Plan for the years 2021-2030. [Online]
Available at: https://www.gov.pl/web/klimat/national-energy-and-climate-plan-for-the-years-2021-2030
[Accessed 09 07 2024].
Ministry of Climate and Environment, Rep. of Poland, 2020. Polityka ekologiczna państwa 2030 – strategia rozwoju w obszarze środowiska i gospodarki wodnej, ministerstwo Rolnictwa i Rozwoju Wsi. [Online]
Available at: https://bip.mos.gov.pl/strategie-plany-programy/polityka-ekologiczna-panstwa/polityka-ekologiczna-panstwa-2030-strategia-rozwoju-w-obszarze-srodowiska-i-gospodarki-wodnej/
[Accessed 09 07 2024].
Ministry of Climate and Environment, Rep. of Poland, 2022. Oświadczenie Ministra Klimatu i Środowiska. [Online]
Available at: https://www.senat.gov.pl/download/gfx/senat/pl/senatoswiadczenia/4259/10_047_1821_MKiS_1_odp.pdf
[Accessed 09 07 2024].
Ministry of Economic Development and Technology, Rep. of Poland, 2022. Krajowa Inteligentna Specjalizacja (KIS) – aktualizacja 2022 r., Załącznik nr 2 do Strategii produktywności 2030. Ministerstwo Rozwoju Technologii. [Online]
Available at: https://smart.gov.pl/images/Opisy-KIS_-werja-8_FINAL_2022_17.01.2022_1.pdf
[Accessed 09 07 2024].
Ministry of Environment, Rep. of Poland, 2013. Strategiczny plan adaptacji dla sektorów i obszarów wrażliwych na zmiany klimatu do roku 2020, Ministerstwo Środowiska, Warsaw: Ministry of Environment.
Ministry of Funds and Regional Policy, Rep. of Poland, 2023. Portal Funduszy Europejskich. [Online]
Available at: https://www.funduszeeuropejskie.gov.pl/strony/o-funduszach/fundusze-2021-2027/umowa-partnerstwa/kto-bedzie-wdrazal-fundusze-europejskie/
[Accessed 09 07 2024].
National Contact Point for EU Research Programmes, 2023. Krajowy Punkt Kontaktowy Programów Badawczych UE. [Online]
Available at: https://www.kpk.gov.pl/horyzont-europa/klastry/zywnosc-biogospodarka-zasoby-naturalne-rolnictwo-srodowisko
[Accessed 09 07 2024].
Polish Investment and Trade Agency, n.d. Polish Investment and Trade Agency. [Online]
Available at: https://www.paih.gov.pl/dlaczego_polska/sektory/spozywczy/
[Accessed 09 07 2024].
Polish Rural Network+, 2024. Krajowa Sieć Obszarów Wiejskich+. [Online]
Available at: https://www.ksowplus.pl/en/eip-operational-group
[Accessed 09 07 2024].
Polish Rural Network+, 2024. Krajowa Sieć Obszarów Wiejskich+. [Online]
Available at: https://www.ksowplus.pl/en/sir
[Accessed 09 07 2024].
Serwis Rzeczypospolitej Polskiej, 2024. Serwis Rzeczypospolitej Polskiej. [Online]
Available at: https://www.gov.pl/web/kowr/podstawowe-informacje
[Accessed 09 07 2024].
Serwis Rzeczypospolitej Polskiej, 2024. Serwis Rzeczypospolitej Polskiej. [Online]
Available at: https://www.gov.pl/web/ncbr/fundusze-europejskie
[Accessed 09 07 2024].
Serwis Rzeczypospolitej Polskiej, 2024. Serwis Rzeczypospolitej Polskiej. [Online]
Available at: https://www.gov.pl/web/arimr/informacje-o-arimr
[Accessed 09 07 2024].
Statistics Poland, 2021. https://stat.gov.pl/obszary-tematyczne/rolnictwo-lesnictwo/psr-2020/powszechny-spis-rolny-2020-raport-z-wynikow,4,1.html. [Online]
Available at: https://stat.gov.pl
[Accessed 09 07 2024].
Statistics Poland, 2022. Forestry in 2021, Statistics Poland. [Online]
Available at: https://stat.gov.pl/files/gfx/portalinformacyjny/pl/defaultaktualnosci/5510/3/3/1/lesnictwo_w_2021_r.pdf
[Accessed 09 07 2024].
Statistics Poland, 2023. Statistics Poland, Energia ze źródeł odnawialnych w 2022 roku. [Online]
Available at: https://stat.gov.pl/obszary-tematyczne/srodowisko-energia/energia/energia-ze-zrodel-odnawialnych-w-2022-roku,10,6.html
[Accessed 09 07 2024].
URE, 2023. Urząd Regulacji Energetyki. [Online]
Available at: https://www.ure.gov.pl/pl/oze/potencjal-krajowy-oze/8108,Instalacje-odnawialnych-zrodel-energii-stan-na-31-grudnia-2023-r.html
[Accessed 09 07 2024].
