Dariusz Adamski, Deputy Chair of the KNF Board, gave a speech ‘How to unlock capital for sustainable investments and innovation ’ during Sustainable Finance Forum organised by Sustainable Finance Forum Poland (POLSIF).

Dariusz Adamski pointed to the need to generate financial returns through sustainable investments and innovations. ‘Any transition will be successful only if it offers a financial return and is cost-effective.’ A transition that meets this requirement allows for the minimisation of public expenditure, increasing space for private investments. This, in turn, enhances financial discipline of projects, which creates more room for higher returns on investments.

A growing role of private capital market vehicles in financing investment needs is a global trend. ‘Their use by financial institutions facilitates a productive mobilisation of retail investors’ capital,’ Dariusz Adamski said. Instruments such as ELTIF enable retail investors to become a part of the process. Unfortunately, at this moment, in Poland we have neither an offer of ELTIF products nor private market infrastructural funds. The UKNF will be actively supporting a change in this regard. 

It is also the public market that has an important role to play in unlocking the capital for the most needed investments. REITs are used worldwide mainly for the purpose of investing in real estate. As Dariusz Adamski pointed out, however, the global market is changing rapidly, and this situation may change. The introduction of REITs in Poland, in particular for investments in infrastructure, would make a profound sense, and the UKNF will be supporting any actions in this direction. 

‘Our aim should be to mobilise and activate the domestic private capital in an orderly and transparent manner. This is exactly why such investment vehicles are needed: they enable financial resources to be gradually redirected from the forms of savings characterised by low productivity, such as time deposits, towards the capital market. This is my priority for now. At the same time I can assure you that the KNF will be supporting all initiatives heading in this direction,’ he said.

Dariusz Adamski assessed that investment vehicles, being an element of the financial system, were a key tool to allocate the capital better. ‘The role of the supervisor is, on one hand, to support the development of new products and strengthen competition in the market since this is the only way for the market to grow. On the other hand, our role is to eliminate irregularities, if any, fast and effectively, since they always undermine confidence in the market, and there is nothing of a greater value in the financial market than reliability and confidence,’ he said.