On April 21, Minister of Finance of Ukraine Oleksandr Danyliuk took part in the signing of the agreement between Ukraine, the International Finance Corporation (IFC), the European Union and Germany establishing a fund for the improvement of energy efficiency in Ukraine. The signing ceremony took place in Washington. The agreement shall help Ukraine reduce energy losses in residential buildings and cut the emission of greenhouse gases.
This multi-donor fund will be co-financing energy efficiency projects for multi-apartment houses in Ukraine jointly with the Ukrainian Energy Efficiency Fund. Also, it will be providing expert support for the development of the market in this sector. According to the Agreement, at the initial stage the IFC will be managing up to EUR 53 million provided by the EU and Germany.
“Today, we have started an important project which will pose one of the key tools to make Ukraine energy-efficient. Many households in Ukraine must consume much energy for heating, since old multi-apartment houses lose up to 50% of their heating energy. The Fund will help solve this important issue for Ukraine through the modernization of such houses. The new project will help Ukraine switch to a more up-to-date model of energy consumption. Also, the project will contribute to approx. 75,000 new jobs for engineers, building workers and energy supply specialists”, Oleksandr Danyliuk said during the signing ceremony.
“We are pleased to support energy-efficiency measures for residential houses in Ukraine which will have a direct impact on the everyday life of Ukrainian citizens and will foster the local economy. I am glad that we have such an experienced partner as the International Finance Corporation for the effective implementation of this program together with the Ukrainian Government”, said Johannes Hahn, European Commissioner for European Neighbourhood Policy and Enlargement Negotiations.
“Climate change is a global threat and we need significant investments to cope with it. This partnership is an important step which will let us use public funds to attract resources from the private sector and to increase investments in measures aimed to prevent climate change and to improve energy efficiency in Ukraine”, said Philippe Le Houerou, chief executive officer of the IFC.
Swenja Schulze, Federal Minister of Germany for environment, nature protection and nuclear security, stressed: “energy efficiency means investments into the future: it improves security, creates jobs and improves the condition of the environment. The establishment of the Energy Efficiency Fund will help Ukraine turn subsidies into investment and reduce the pressure on the state budget”.
The Energy Efficiency Fund of Ukraine which was founded with the active participation of the Ministry of Finance is a new instrument for the implementation of projects for the energy modernization of Ukraine which cover both households and organizations. The Fund operation is regulated by the Ukrainian legislation, its budget consists of contributions from the state budget of Ukraine and international partners of Ukraine. The Fund will be financing the implementation of projects for thermic modernization, implementation of effective monitoring and management systems, installation of effective heating and cooling systems and equipment as well as the replacement of existing systems for more effective ones. Funding will be provided as a partial refund for energy-efficiency measures to private persons and organizations.
IFC is a member of the World Bank group which is the largest global development institution focused on the private sector in emerging markets. Cooperating with more than 2,000 companies worldwide, the Corporation uses its capital, expertise and influence to develop markets and to create possibilities in various parts of the world. In the financial year of 2017, the long-term investments of the IFC in developing countries reached a record volume of USD 19.3 bn.