The International Group of Chambers of Commerce (IGCC) was established in 2005 to create a united platform of communication for the international business community with the Polish Government.

Each Chamber being a member of IGCC is equally represented on the Board and able to contribute to define the action plans and activities of the organization. The IGCC started in 2005 with four Chambers as founding members – American, British, French and Italian. Today IGCC is a group of 16 Chambers of Commerce representing 22 Countries and over 2000 companies employing hundreds of thousands people, representing the most significant foreign investments in the country.

Poland represents an important partner for growth and development for all the companies who invested in this market. There is also great opportunity to attract significantly more foreign direct investment in different economic sectors. The knowledge across the world about what Poland means from a business perspective is becoming more widely known through the track record of successful FDI and strong economic development.

IGCC is well placed to help create the best framework for investments and growth in Poland bringing international business community experience, capital and know-how. IGCC supports the interests of its members through activities including:

• Keynote meetings to address directly senior Government officials and decision-makers
• Joint statements on pressing issues affecting in the business environment
• Business climate surveys and reports.

The role of IGCC is to maintain and actively develop cooperative relations with the Government and support the process to make Poland an attractive place for foreign investors for mutual benefit to the investor and local community.

IGCC Presidency

Each member Chamber holds the Presidency of IGCC for a six-month term.
The current Chair (July 2024-December 2024) is held by the Polish-Canadian Chamber of Commerce (PCCC).

The rotation is followed in this order:

• Polish-Romanian Bilateral Chamber of Commerce
• Italian Chamber of Commerce and Industry in Poland
• German-Polish Chamber of Industry and Commerce
• Irish Polish Chamber of Commerce
• Polish-Israeli Chamber of Commerce
• British-Polish Chamber of Commerce
• French-Polish Chamber of Commerce
• American Chamber of Commerce in Poland
• Polish-Luxembourg Chamber of Commerce
• Belgian Business Chamber
• Polish – Spanish Chamber of Commerce
• Netherlands-Polish Chamber of Commerce
• Advantage Austria
• Scandinavian-Polish Chamber of Commerce
• Polish-Swiss Chamber of Commerce
• Polish-Portuguese Chamber of Commerce
• Polish-Canadian Chamber of Commerce

IGCC meet every month for working meetings to discuss the strategic challenges and opportunities facing our member companies, and appropriate actions to take.

Business Environment Principles

Our Business Environment Principles are a common understanding of IGCC member Chambers of how business is conducted to be win-win for the investor and the receiving country to create prosperity for all sides.

1. Equal treatment of investors
2. Predictability of the legal environment
3. Quality of legislation preceded by consultations
4. An effective judicial system
5. Mutual respect

1. Equal treatment of investors

When foreign and domestic investors are treated equally and fairly, subject to non-discriminatory laws and regulations in a transparent, open environment, all businesses can operate freely under the principles of fair competition regardless of origin.

2. Predictability of the legal environment

Laws that are stable, that are not applied retroactively, and that can be interpreted in the same way across the country allow companies to effectively plan their activities and investments, build strong ethics into their practices from the get-go, and optimize their relationship with society by paying their fair share of social costs as well as adhering to high standards of labour, health, and environmental protection based upon acknowledged, country-wide norms.

3. Quality of legislation preceded by consultations

Public consultations held during the process of writing legislation can serve to increase the stability and predictability of the economic environment. Effective public consultations build cooperation and trust – and where followed by good laws are crucial to building an innovative economy in which openness, a willingness to play by the rules, and an intolerance for corruption unite all participants.

4. An effective judicial system

Investors place high value upon the efficiency and soundness with which an effective and independent judicial system manages litigation in commercial and regulatory cases. They also look for fairness in the interpretation of the law, including in cases of taxation. Clarity and consistency are key drivers of an effective legal system.

5. Mutual respect

Mutual respect is an indispensable ingredient of a positive investment and business climate in which all stakeholders enjoy a positive outcome.

Joint Statements

IGCC actively support the creation of a good business environment for companies to invest and operate in Poland in line with our Business Environment Principles. Our Joint Statements represent our position and act as an invitation to dialogue with the Polish Government on issues of significant influence to fair and sustainable business operations in Poland.

Some issues affecting business operations which we have raised with Ministries and/or the President of Poland include:

• Regulatory barriers concerning the employment of foreigners
• Inefficient regulations and process for public tender projects
• Limitation on sales of dermo-cosmetics in pharmacies
• Concern over institutional changes affecting the independence of the Polish court system
• Amendments to renewable energy law affecting existing investors

Reports and Surveys

IGCC member Chambers monitor the business environment on a regular basis to gain insight into trends, issues and opinions of foreign investors in Poland. The information gained is shared with the public to inform decision makers.

Advancing Decarbonized Logistics through Intermodal Transportation 

In the quest for a sustainable logistics framework, the integration of intermodal transportation presents a pivotal strategy. By leveraging multiple transport modes, we can significantly advance decarbonized logistics. Here are the critical advantages:

Emission Reduction: Intermodal transportation reduces greenhouse gas emissions by shifting freight from high-emission road transport to lower-emission rail and maritime modes. Rail transport emits approximately 75% less CO2 per ton-mile compared to road transport, and maritime transport is also highly efficient over long distances.

Operational Efficiency: By utilizing the strengths of each transport mode, intermodal logistics minimizes fuel consumption and optimizes route efficiency. Rail and maritime are ideal for long-haul segments, reducing highway congestion and improving overall network fluidity. Trucks are then used for the final mile, providing the necessary flexibility and quick turnaround times.

Economic Benefits: The strategic use of intermodal transport reduces operational costs. Rail and maritime transport are more fuel-efficient, leading to lower fuel costs. Additionally, intermodal terminals enhance cargo handling efficiency, further driving down costs associated with delays and road maintenance.

Scalability and Flexibility: Intermodal systems offer scalable solutions that can handle varying cargo volumes and diverse types of freight. This flexibility supports dynamic supply chain demands, ensuring continuity and resilience in operations.

Supply Chain Resilience: Diversification of transport modes mitigates risks such as road network disruptions or port congestion. Intermodal transport provides multiple routing options, enhancing supply chain reliability and robustness against unforeseen challenges.

Implementing intermodal transportation is essential for achieving carbon neutrality in logistics. By integrating rail, road, and maritime transport, we can construct a resilient, efficient, and environmentally responsible supply chain. Let’s commit to this sustainable transition and drive the future of green logistics.

Poland – Strategic Choice for Transport, Shipping and Logistics (TSL) Sector

The Transport, Shipping and Logistics (TSL) sector is one of the most important components of the Polish economy. In 2022, it contributed approximately 7% to Poland’s GDP directly, with an indirect impact on up to 50% of the economy. Between 2010 and 2022, the average annual volume growth rate was 4.9%, approximately three times the European Union average, making Poland the EU market leader. Its importance goes beyond the country’s borders, directly affecting the entire economy of the European Union. 

Poland’s Advantages 

Due to its strategic geographical location at the crossroads of major European transport corridors, Poland has developed into a key logistics hub. Situated between Western and Eastern Europe, Poland serves as a vital transit point for goods moving across the continent. Its proximity to key European markets enhances its role as a gateway for trade. Access to the Baltic Sea also provides significant opportunities for maritime transport, linking Poland to global shipping routes and facilitating international trade.

Poland’s transport and logistics sector has evolved significantly, especially after 1990 following the fall of communism. Moreover, the country’s integration into the European Union in 2004 further accelerated its growth, providing access to the single market facilitating seamless cross-border trade, reducing barriers and customs duties, and enhancing the efficiency of logistics operations. Additionally, harmonized regulations across the EU ensure standardized practices, fostering fair competition, all supported by EU funding and structural investments, which bring stability and prospects for the future. 

Moreover, Poland’s membership in NATO contributes to the stability and security of the region, crucial for the TSL sector. This stability attracts foreign investment and enhances the reliability of supply chains. NATO’s focus on infrastructure development, including strategic transport routes and logistics capabilities, complements Poland’s efforts to strengthen its TSL sector, further integrating it into the broader transatlantic logistics network.

Poland is still a growing economy, which creates big opportunities for foreign investments, including the TSL sector. Additionally, Poland boasts a skilled and relatively cost-effective labour force, including professionals specialized in logistics and supply chain management.

Challenges

Currently, the logistics sector in Poland is undergoing a very dynamic transformation. On the one hand, its development is positively influenced by the intensive growth of e-commerce and retail, on the other – it has to face several challenges.

After the threats from the pandemic were reduced, Poland was seen as an alternative supply, storage and logistics hub in Europe. However, the closeness of the war in Ukraine has changed the perspective of a significant portion of global companies. 

A single market and common regulations within the European Union can be seen as an advantage, however, the need to adapt many countries with different levels of development to a complex framework of EU law can be challenging, time and fund-consuming. Key national regulations include the Transport Law Act, which sets out rules for road, rail, and maritime transport, and the Civil Aviation Law, which governs air transport operations. Poland aligns with EU directives, such as the Mobility Package, which addresses drivers’ working conditions, road safety, and fair competition within the EU transport market. Customs procedures and cross-border logistics are regulated by the Union Customs Code, facilitating streamlined and standardized practices across EU member states.

Environmental regulations play a crucial role in shaping the future of the TSL sector. EU-wide directives, such as the European Green Deal and the Fit for 55 package, aim to reduce greenhouse gas emissions and promote sustainable transport. These regulations mandate the use of cleaner fuels, the reduction of emissions from vehicles, and the implementation of energy-efficient logistics practices. In Poland, compliance with these directives involves adopting alternative fuel technologies, investing in electric and low-emission vehicles, and enhancing energy efficiency in logistics operations. The integration of environmental standards is essential for the sector to meet EU climate targets and promote sustainable growth. 

The TSL sector faces labour market constraints, including a shortage of qualified staff, which is becoming a key brake on the industry’s growth. Moreover, there is a lower number of drivers from across the eastern border, due to the war in Ukraine. Another aspect is related to the demographic situation in the EU – an ageing population translates into an ageing workforce. The talent competition poses challenges for logistics companies. Investing in training and development programs, improving working conditions, and attracting young talent are essential strategies to address these issues.

Another crucial element reshaping the logistics industry globally is the usage of advanced technologies, such as automation, artificial intelligence, and blockchain. The technological change compels additional investments and changes in the approach to enhance operational efficiency, improve supply chain visibility, and meet customer expectations. Embracing digital transformation is critical for staying competitive in the rapidly evolving logistics landscape.

An efficient TSL sector is crucial for developing trade, industry and many side services. Recent events, such as the COVID-19  pandemic and the Russian invasion of Ukraine have shown that a comprehensive, diversified and flexible industry is essential to support the stability of economic development and trade. 

Poland offers strategic advantages for businesses in the TSL sector. Its strategic location, robust economy, well-developed infrastructure, skilled workforce, and access to the EU single market provide significant advantages for businesses operating in this sector. However, potential investors and companies must also navigate challenges related to infrastructure gaps, regulatory complexities, labour market constraints, environmental regulations, and technological advancements. Addressing these issues through continued investment, regulatory reforms, and strategic initiatives will be crucial for maintaining and enhancing Poland’s competitive edge in the TSL sector. Overall, Poland’s growing capabilities and strategic position make it a promising hub for logistics and supply chain operations, both within Europe and on a global scale.

The increasing popularity of renewable energy in Poland shows the growing environmental consciousness of Polish society. In the context of solar power, the change is remarkable: from private households to public commercial areas, the number of photovoltaic systems installed is increasing.

According to data from the Institute for Renewable Energy (IEO), at the end of first quarter of 2024, Poland’s solar capacity reached 17.73 GW and it is still growing! It is worth noting the rapid pace of the progress, especially if we compare data from previous years. For example in 2021, only three years ago, Polish solar capacity reached 7.7 GW.

The significant growth of solar capacity places Poland among the countries with the highest increase in photovoltaics capacity in European Union. In the ranking from 2022 Poland was 2nd, just after Germany.

In March 2024, 44% of energy produced in Poland came from renewable sources. The majority of it from photovoltaic (60%). Those changes may be seen as a big step in the transition from coal to environmental friendly sources of energy.

One of Poland’s most important recent tasks is to adapt to the demands of EU climate policy and to guarantee energy security. Meanwhile, the conventional technologies in Poland are still responsible for almost ¾ of electricity generation, and the share of zero-emission technologies (renewables and nuclear) is the lowest in the Community.

Renewable energy sources therefore have a great potential for development. It is currently estimated that around 50% of Poland’s electricity needs could be met by renewable energy sources by 2030, compared with 20.6% in 2022. Biomass and biogas represent 20% of electricity generated from renewable sources. The Polish biomethane industry estimates the potential for sustainable biomethane in Poland at 3.3 bcm by 2030. Given this potential, Poland could be one of the top 5 biomethane markets in the EU27.

The CCIFP is hosting a Business expedition next week for companies from France to present development opportunities in this area in Poland. Feel free to contact Sylwia Bojanowska (sylwia.bojanowska@ccifp.pl) to find out how to support companies interested in the Polish market, both in the bioenergy sector and other areas.

Taking into account manufacturing of motor vehicles, parts and accessories, as well as trade and repair services related to cars and car parts, the Polish automotive industry is the largest in Central and Eastern Europe.

In 2022, According to data by OICA, nearly 479 thousand units left factories located in Poland, an increase of 10.3% compared to the previous year, reaching 74.5% of the pre-pandemic annual volume.

Nominal labour costs in the automotive industry, understood as the average monthly wage, continued to rise. In 2022 it hit the mark of PLN 6,981 gross, up by 12.5% and by the end of 2022, wages in the Polish automotive sector had grown to 106% of the industrial average.

Polish automotive sector exports saw significant growth in 2022. Automotive products increased by 14.3%, reaching 38.4 billion €, surpassing the 2019 level.

In 2021, foreign direct investments (FDI) in Poland reached 25 billion €, marking an 87.6% increase from 2020.

The previous year 2023 was a record year for Polish rail. A total of 374.4 million passengers used the railway, an increase of 30 million more than in 2022 and the best result since 2000. The upward trend in passenger numbers shows that rail is gradually regaining its competitiveness against car transport. Freight transport, on the other hand, recorded decreases compared to the previous period: in the weight of goods transported (-6.8%) and in the freight work performed (-1.4%).

Both passenger and freight transport are characterised by high growth potential. This is demonstrated in passenger transport in the rail usage rate: the statistical inhabitant of Poland travels nine times a year, while in Germany the figure is almost 30 and in Switzerland more than 40. Travelling by rail is economical and low-emission, as it is several times cheaper than travelling by car, and generates the lowest carbon footprint among the various forms of transport, emitting only 4.6% of all carbon dioxide produced by transport (road transport accounts for 72%).

EU funds have played a key role in the development of rail in Poland. Total expenditure on railway infrastructure between 2004 and 2023, including national funds, amounted to almost PLN 116 billion and included the reconstruction and modernisation of some 17,000 kilometres of track (according to PKP).

However, investment needs remain enormous. The extension, modernisation and digitalization of the rail infrastructure is essential for the implementation of a dedicated and modernly managed network (high-speed rail, regional rail and freight).No less important are the investment plans of organizers and carriers, including in new rolling stock and modernization of vehicle technical facilities, with the aim of strengthening their competitiveness in the liberalizing passenger transport market.

Finally, EU funding has also been released, as the European Commission announced in February this year the release of the National Recovery Plan (NRP) and EU funds from the 2021 – 2027 perspective. This is Poland’s last chance to take advantage of these substantial funds, as it is likely to become a net contributor to the EU coffers next time around.

The total expenditure on railway infrastructure planned for the years 2024-2030 within the framework of public and EU investment programmes amounts to almost PLN 250 billion (including the railway component of the CPK). The absorption of such huge amounts of funds is a challenge for the railway construction industry and its capacities. At the same time, it is a unique opportunity for new foreign investors planning to enter the Polish railway market.

Artur Martyniuk

President of the Management Board at POLREGIO S.A. in 2020-2023

Tomasz Małecki

Delegate of the Management Board at POLREGIO S.A. in 2021-2023 

Poland in the TOP 3 of the highest-rated investment locations in Central and Eastern Europe – this is the result of a survey that AHK Poland, together with other chambers affiliated with the IGCC, conducted in the first quarter of 2024 among foreign investors .

It assessed 25 factors influencing the country’s investment attractiveness, grouped into five areas:

• Economic and administrative policy,
• Taxes,
• Economic environment,
• Labour market
• Infrastructure

Invariably for years, membership of the European Union has been cited as having the greatest impact on Poland’s attractiveness as a business location.

Good communication, both in the form of the quality of communication networks and services, as well as transport and logistics, is also mentioned as one of the next most important advantages.

Thus, infrastructural factors were recognised in this year’s survey, whereas last year the quality and availability of sub-suppliers and employees were emphasised above all.

In our survey, we also ask respondents about the economic mood and outlook.

Here this year’s key facts:

• 98% of respondents say they would choose Poland again as an investment location
• 87% of respondents assess the condition of the Polish economy as good or satisfying
• 80% of respondents expect the turnover to grow or to stay at the same level as a year ago same year
• Over 50% of respondents consider their economic situation as good
• 30% of respondents anticipate an increase in employment and investment spending

’The results of the survey indicate a recovery of the economy after a prolonged phase of economic downturn observed throughout Europe,  and are an expression of positive business sentiment regarding economic developments in the coming months’. – Dr Lars Gutheil, General Managing Director of the German-Polish Chamber of Industry and Commerce (AHK Poland), commented on this year’s survey.

More about the results of the survey can be found here.

As indicated in the report prepared by the International Group of Chambers of Commerce in Poland (IGCC), nearly 25,000 foreign-owned enterprises from 107 countries operate in our market. Poland’s most influential investors are from Germany, the United States, Great Britain, and France.

The English version of the report can be found at the following link: Foreign Direct Investment in Poland

The Polish version at the following link: Zagraniczne Inwestycje Bezpośrednie w Polsce

Date issued: December 2020

Author: Dr hab. Eliza Przeździecka, American Chamber of Commerce in Poland

Business Climate Survey

An annual economic survey on the current business climate in Poland is conducted by AHK German Chamber of Commerce compiling the views of foreign investors in Poland (IGCC members). The survey is also run in parallel by German Chambers of Commerce in other countries throughout the CEE region.

The survey results are presented in a press conference that includes a discussion panel with Q&A for investors.