World Bank: Poland's $450 Billion Decarbonization Push Could Boost GDP by 4%

The World Bank has highlighted a significant economic opportunity for Poland. According to the bank, decarbonizing the Polish economy by 2050 could boost the country's gross domestic product (GDP) by 4%. This transformation, aligned with the European Union's carbon neutrality goals for the same year, is expected to require approximately $450 billion in investments.

Poland, which has committed to ending coal mining for energy production by 2049, is in the process of revising its national energy and climate plan to be submitted to the European Commission. According to the World Bank's findings, achieving net zero emissions within the next three decades could increase Poland's annual real GDP growth by an average of 0.2% over the next 25 years. This growth trajectory is projected to yield at least a cumulative economic gain of 4% in GDP by 2050 compared to existing policy projections.

Improvements in health due to cleaner air could also contribute to economic benefits, potentially adding an additional 1.4% to GDP during the same period. The report emphasizes the serious risks associated with Poland's ongoing dependence on coal. This situation not only leads to the highest number of deaths due to air pollution in Europe but also positions Poland as the ninth-largest coal consumer globally.

The country is experiencing annual losses of approximately $1.4 billion due to severe droughts and faces a significant number of assets and population at risk of flooding—assets valued at $7 billion and a population of 600,000, respectively.

The World Bank stresses that Poland needs to utilize domestic and EU resources, along with private capital, to achieve its decarbonization goals. The transition to a greener economy is presented as an important but necessary investment for Poland's future economic health and environmental sustainability.