The relevant law was signed by President of Ukraine Volodymyr Zelenskyy. The Fund was initiated by the Ministry for Communities, Territories and Infrastructure Development together with the State Agency on Energy Efficiency and Energy Saving of Ukraine and MPs.

"The creation of the Decarbonisation and Energy Efficiency Transformation Fund is a signal to international partners that our country is developing according to European principles. This includes reducing harmful CO2 emissions and investing in energy efficiency. Such steps will enable the recovery of the Ukrainian economy and the development of communities," said Oleksandr Kubrakov, Deputy Prime Minister - Minister for Communities, Territories and Infrastructure Development.

What is the Fund aimed at?

Ukraine will have a reliable, legally protected source of financing to implement energy efficiency programmes, reduce CO2 emissions and support alternative energy sources.

What is the principle of the Fund's operation?

For the first time, the "polluter pays" principle has been enshrined in law. The Fund will be replenished through an environmental tax on CO2 emissions. First of all, it will be paid by large industrial enterprises.

It is also planned to attract international loans and grants. The money will be used to introduce new technologies that will reduce emissions, as well as for thermal modernisation of buildings and social facilities and other projects.

What effect will Ukraine get from the creation of the Fund?

The National Energy Efficiency Action Plan predicts a 17 per cent reduction in final energy consumption in Ukraine by 2030. It is also expected to reduce CO2 emissions by 65 per cent compared to 1990, as set out in Ukraine's Nationally Determined Contribution to the Paris Agreement.

According to Hanna Zamazeyeva, Head of the State Agency on Energy Efficiency and Energy Saving, the Fund will become a permanent source of funding for numerous energy efficiency projects and programmes for everyone: the population, communities, and businesses. International partners are also being sought to join the Fund and launch new programmes.