Sustainable Switch: Climate Focus - Poland’s flood recovery funds
Sept 20 -By Sharon Kimathi
Energy and ESG Editor, Reuters Digital
sharon.kimathi@thomsonreuters.com
Hello,
This week’s Climate Focus follows the aftermath of the worst flooding in central Europe in at least two decades, as Poland poses the question of flood recovery financing.
Poland’s Finance Minister Andrzej Domanski said the current recovery funding will not be enough to help it cope with the fallout from the floods.
"We know that the losses are very large, very high, although we do not know the exact number yet," Domanski said in an interview with TVN broadcaster.
"So I think that this amount, these 5 billion euros ($5.6 billion) for Poland is an adequate amount. It does not mean at all that it is an amount sufficient to cover all the losses."
The flooding was caused by torrential rain that began last week and lasted for several days, causing rivers to burst their banks in several parts of central Europe.
While many towns have seen residents' possessions strewn across the streets amid piles of mud and other debris, other areas of Poland have been spared the worst thanks to the work of emergency services and volunteers.
Poland, which forecasts a deficit at 5.7% of gross domestic product in 2024 and 5.5% in 2025, has been tasked by the EU with cutting the shortfall to its 3% limit in the coming years.
Warsaw has cited increased defense spending following Russia's invasion of Ukraine, in addition to the COVID-19 pandemic and energy price shocks in recent years as the main cause for the elevated deficit levels.
European Commission President Ursula von der Leyen said the EU would make billions of euros available to help central Europe recover from the floods.
"I am here to reassure you that Europe stands by your side," she told a news conference in the Polish city of Wroclaw, standing alongside leaders of the affected countries.
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Climate Commentary
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Climate Lens
Column: High dependence on fossil fuels for electricity generation is the main driver behind Italy's high power costs. In 2023, 55% of Italy's electricity came from fossil fuels, Ember data shows. That compared to 45% in Germany, 39% in the United Kingdom, 25% in Spain and 41% for Europe as a whole.
Number of the Week
$42.6 billion
The record number of the World Bank Group’s climate financing during fiscal 2024, a 10% increase over the $38.6 billion the prior year and close to its target of a 45% share of total financing devoted to climate projects.
The $4 billion increase during the fiscal year ended June 30 shows progress towards the bank's goals, but is well short of the trillions of dollars in extra resources needed annually to finance the clean energy transition in emerging markets and developing countries.
Sustainable Switch Climate Focus was edited by Alexander Smith
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