EU, Germany to Allocate € 53 million to Ukraine for Energy Efficiency Projects

The government of Ukraine has concluded an agreement with the International Finance Corporation, the European Union and the Federal Republic of Germany, which envisages the creation of a fund to improve energy efficiency on Ukrainian territory.

It is expected to help Kyiv reduce energy losses in the housing sector, reduce greenhouse gas emissions and switch to a modern consumption model and energy accounting.

At the first stage, Germany and the European Union are allocating $53 million for these purposes, according to the official website of the Ministry of Finance of Ukraine. The agreement was signed by the Minister of Finance of Ukraine, Alexander Danilyuk, on April 21.

"This multi-donor fund, together with the Ukrainian Energy Efficiency Fund, will co-finance energy efficiency projects in apartment buildings in Ukraine and provide expert support for the development of the market," the statement of the main Ukrainian financial department says.

"We have launched an important project that will become one of the main tools for achieving energy efficiency in our country,” Danilyuk said at the signing ceremony. “Many families in Ukraine are being forced to use a large amount of energy for heating, since old apartment buildings lose up to 50% of the heat. The Fund will help solve this pressing problem for Ukraine by helping us to modernize such houses. The project will also contribute to the creation of about 75,000 new jobs for engineers, builders and workers in the energy sector.”

By Dimitri Dolaberidze