IFC will help in channeling up to $235m (£188.6m) in grants and loans over the next four years to Ukrainians
Image: IFC to support Ukraine to improve energy efficiency. Photo: Courtesy of Alexander Redmon/FreeImages.
International Finance Corporation (IFC), a member of World Bank Group, has agreed to financially support Ukraine in boosting energy efficiency across the country’s residential sector.
As part of this arrangement, IFC will help in channeling up to $235m (£188.6m) in grants and loans over the next four years to Ukrainians who want to make their homes more energy efficient and save on utility costs.
As per estimates, nearly 50% of residential heating gases in the country are lost annually. Nearly 6,000 homeowners’ associations in the country are expected to participate in the program, which will be financed by newly formed Energy Efficiency Fund and €100m (£90m) Multi-Donor Trust Fund.
Ukraine Vice Prime Minister and Regional Development, Building, and Housing Minister Hennadiy Zubko said: “Today’s signing is another significant step in our efforts to promote energy efficiency. Over 80 percent of Ukraine’s multi-family houses require energy-efficient modernization, and the Energy Efficiency Fund will work with homeowners’ associations to help with these renovations.
“IFC’s support to the fund will help ensure the program is managed to the highest standards and delivers on its goals.”
The agreement between Ukraine and IFC will set the legal groundwork to fully launch the Energy Efficiency Fund later this year. It will start serving clients after its procedures are finalized and its official program is published.
The trust fund will be managed by IFC
The trust fund which was formed to help Ukraine reduce its reliance on imported gas, while also reducing state subsidies for energy consumed by its citizens, will be managed by IFC and is supported by the European Union (EU) and Germany.
The Energy Efficiency Fund CEO Yuliia Holovatiuk-Ungureanu said: “We believe the fund will become a national success story. Cooperation with IFC and the donors will allow Ukraine to increase its energy efficiency and reduce carbon dioxide emissions, helping the country comply with its international obligations.”
Last June, IFC and Switzerland had agreed to support Ukraine’s energy efficiency renovations to the residential sector. As part of this arrangement, the Swiss State Secretariat for Economic Affairs (SECO) agreed to provide up to $1.8m (£1.4m) to FIC Advisory Services to support legal reforms that will support energy-efficiency refurbishments.