Advancing Sustainable Finance in Poland: How BNP Paribas CIB and IFC Drive Climate Action
BNP Paribas Bank Polska and the International Finance Corporation (IFC) are using Significant Risk Transfers (SRTs) to strengthen Poland’s climate action strategy and finance large-scale energy efficiency projects. This initiative directly supports the implementation of the United Nations Sustainable Development Goals (SDGs) and accelerates the country’s low-carbon transition.
Introducing a New Chapter in Sustainable Finance
As the market for Significant Risk Transfers (SRTs) continues to expand as a key asset class in emerging markets, BNP Paribas Bank Polska (BNPP Poland) — a subsidiary of BNP Paribas S.A. Group (BNPP Group) — has launched a new Synthetic SRT transaction in partnership with the International Finance Corporation (IFC), a member of the World Bank Group.
This second collaboration between IFC and the BNPP Group will help scale up green finance in Poland by unlocking capital for energy-related projects. It reflects the Group’s commitment to purpose-driven investment and to supporting the decarbonisation strategies of emerging and developing economies.
Unlocking USD 548 Million for Poland’s Green Transition
SRTs, or Synthetic Risk Transfers, are a form of synthetic securitisation that allow banks to transfer credit risk to external investors while keeping the underlying assets on their balance sheets. Introduced under Basel II in 2004, SRTs have become increasingly popular among European banks over the past decade as a way to optimise balance sheets and improve capital efficiency.
Regulatory innovation has further boosted their appeal, enabling institutions to free up lending capacity, mitigate systemic risk, and expand access to finance in a cost-effective way.
Building on BNP Paribas Group’s landmark SRT supporting trade finance in emerging markets, this new partnership with IFC provides mezzanine risk exposure on a USD 548 million credit portfolio from BNP Paribas Bank Polska. This mechanism releases capital to one of Europe’s most carbon-intensive economies — helping Poland move faster towards decarbonisation.
Notably, this is IFC’s first SRT transaction under the “Simple, Transparent and Standardised” (STS) framework — a major regulatory step that enhances market transparency and investor confidence. The transaction also aligns with BNP Paribas’ long-term commitment to responsible development and its ambition to drive positive impact in global capital markets.
New impetus for Climate Action in Poland
‘BNP Paribas Bank Polska has consistently financed numerous sustainable infrastructure investments to guide the Polish economy in a more environmentally friendly direction. The synthetic securitisation allows us to become even more active in this field, reinforcing our role as a lynchpin of sustainable transformation in Poland.’
— Przemek Gdański, CEO of BNP Paribas Bank Polska
This remarkable achievement marks a significant milestone for Poland’s green transition. It showcases BNP Paribas’ role as a key institutional enabler of environmental investment in Central and Eastern Europe.
With fossil fuels still accounting for nearly 80% of Poland’s energy supply in 2023, the government’s Energy Policy of Poland 2040 estimates that USD 350 billion will be required between 2021 and 2040 to achieve full transition.
Through this inaugural Synthetic SRT, BNP Paribas Bank Polska aims to facilitate new Polish złoty (PLN)-denominated loans dedicated to green projects — from renewable energy and water efficiency to sustainable transport — while aligning with the country’s recovery and resilience plan.
‘Risk-sharing transactions such as this SRT can increase access to sustainable finance at a time when massive investments are needed to accelerate the green transition.’
— Tomasz Telma, Director and Global Head of IFC’s Financial Institutions Group
SRTs: Shaping the Future of European Investments
‘The transaction clearly highlights the power of collaboration to catalyze the climate transition in emerging markets. Our SRTs with IFC, with Poland being the second one, set a precedent for future risk-sharing partnerships’
— Laurent Leveque, Global Head of Official Institutions Coverage at BNP Paribas
The new SRT for Poland’s green agenda provides valuable insight into the financing and profitability challenges facing sustainable finance across Europe. Since the 1990s, banks have focused on reducing risk-weighted assets (RWAs), developing innovative tools to enhance capital efficiency and manage credit risk transfer.
Today, SRTs represent a robust, collaborative framework for achieving those goals. Supported by evolving regulation under Basel III and IV, the market is gaining traction as a cornerstone of modern banking strategy — balancing financial stability with sustainable impact.
By leveraging such innovative mechanisms, BNP Paribas reaffirms its leadership in advancing sustainable finance and shaping the future of responsible investment in Europe and beyond.
This article was produced for BNP Paribas CIB in May 2025.