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Energy Transition Bond



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

07 Apr 2020



PSD disclosed:

02 Nov 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

EBRD has subscribed for an investment of PLN 240 million in  5-year unsecured bonds (the "Bonds") issued by Tauron Polska Energia S.A.  (the "company" or "Tauron") to finance Tauron's energy transition programme and decarbonisation strategy.

Project Objectives

The operation will support the implementation of the company's decarbonisation strategy. Proceeds from the Bank's investment will be used to finance the expansion and upgrade of the distribution network, including the rollout of new renewable energy connections and new users connections.

Transition Impact

ETI score: 68

The project targets the "Inclusive" TI objective through undertaking steps aimed at mitigating the social costs stemming from the company's ambitious green strategy, including the gradual decommissioning of coal-fired units, and the expansion of generation from renewable energy sources, and the reduction of the CO2 emissions.

The project also targets the "Green" TI objective via new distribution investments meant to reinforce the grid and allow it to absorb a greater volume of intermittent renewable energy generation. Overall, the expected primary energy saving from the Bank's investment are expected to reach 26,404 MWh per annum. Furthermore, the investment is expected to lead to GHG savings of 20,569 tonnes of CO2 emissions per year per the Bank's calculations. 

Client Information


Tauron operates as a vertically integrated utility with operations covering electricity generation, distribution, trading, and customer supply. Tauron is the largest electricity distributor in Poland, covering 18% of Poland's territory by distribution network and 36% in terms of electricity volume.

EBRD Finance Summary

PLN 240,000,000.00

Total Project Cost

PLN 1,000,000,000.00


EBRD financing is expected to effectively 'close the funding gap' and allows to carry out a successful book-building. Moreover, this is the first time in Poland that a utility issued a bond linked to its energy transition strategy and commit to meeting carbon intensity and renewable targets.

Environmental and Social Summary

Categorised B (2019 ESP). The project is a capital markets transaction and the Bank's due diligence has been limited to a review of publicly available documents by ESD specialists. The level of available information and has allowed for adequate assessment of environmental and social risks of this Project in accordance with the Bank's 2019 ESP. The Bank has previously provided financing to a number of JVs with Tauron in Poland (Tamech JV with Arcelor Mittal and Stalowa Wola CCGT) and has undertaken a high level due diligence of the Company in the past.

EBRD's environmental and social due diligence has confirmed that the company has the institutional capacity to implement the Bank's Performance Requirements and has embarked on a medium to long-term decarbonisation plan, with the aim of closing down a number old coal fired power plants and investing in renewables. No material non-compliance issues have been identified to date. The Company operates coal fired assets and has recently commissioned a state of the art coal fired unit, which will be in operation post 2030.

The reliance on coal for the energy generation will subject this Project to CSO scrutiny. The Bank's use of proceeds will be allocated through conditions in the Framework Agreement to the strengthening the distribution systems, needed for development of renewable Projects. The Company will also acquire and develop new renewable Projects in the future.

Overall, Tauron has good compliance record and is developing corporate EHS management systems. It has a dedicated EHS management team and develops sustainability reports for the group and individually for some subsidiaries. The EBRD proceeds will not be used for any Category A projects and the Company will not invest in any coal fired units in the future. The current ESAP requires that if the Company was to developed projects in sensitive areas or of sensitive nature these would need a full ESIA in line with Bank requirements.

ESAP has been developed on the basis of the findings of the ESDD and it will include requirements relating to, among others, strengthening of non-financial reporting in line with best practices and EU guide on climate related information. The Company will also publish its decarbonisation strategy and update it every 3 years and agree to implement TCFD by 2021 as one of the future companies in Poland. The ESAP has been agreed and forms part of the Framework Agreement to be signed shortly before subscription.

Additional information on the Company and it non-financial reporting can be found on the Company's web site

The Bank will continue monitoring the Company's performance through reviewing annual reports prepared by the Company

Technical Cooperation and Grant Financing


Company Contact Information

Miroslaw Zogala
+48 32 774 27 06

Implementation summary


PSD last updated

03 Nov 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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