Ukraine and NEFCO deepen cooperation to attract climate finance and support green recovery

The Ministry of Economy and Environment of Ukraine and NEFCO (Nordic Environment Finance Corporation) have signed a Memorandum of Understanding that opens new opportunities for strengthening cooperation on Ukraine's green recovery, the fight against climate change and attracting climate finance. The signing was announced on 13 November at the Ukrainian pavilion at the UN Climate Change Conference (COP31) in Antalya, Türkiye.

The Memorandum sets out the main areas of cooperation to support Ukraine's climate goals and recovery efforts, promote cooperation under Article 6 of the Paris Agreement and voluntary carbon markets, attract climate and carbon finance, and speed up high-impact climate mitigation measures and projects.

Cooperation will be supported by the Nordic Climate Partnership, a new pilot initiative coordinated by NEFCO that aims to attract climate and carbon finance for greenhouse gas reduction projects meeting high integrity standards.

Potential areas of cooperation include methane reduction, waste management, biomethane production, energy, district heating, industry and agriculture.

"It is important for Ukraine that climate policy delivers concrete results: new investment, modernized enterprises and lower greenhouse gas emissions. In 2026, we approved the regulatory framework for implementing cooperative approaches under Article 6 of the Paris Agreement. Now our task is to use these opportunities to attract climate finance and carry out projects that will support Ukraine's green recovery. That is what our cooperation with NEFCO is aimed at: linking our climate goals with practical investment solutions," said Oleksandr Krasnolutskyi, Deputy Minister of Economy and Environment of Ukraine.

"NEFCO has worked with Ukraine for more than 20 years, and since the start of the full-scale invasion we have launched more than 100 new projects. This memorandum builds on a long-standing partnership and has the potential to further strengthen our ability to deliver green recovery projects, opening new opportunities to attract climate and carbon finance. Our focus, as before, is on concrete investments that help cut emissions, build resilience and support sustainable economic development," said Trond Moe, NEFCO Managing Director.

The Memorandum also provides for expert cooperation, preparing portfolios of climate projects, sharing experience and attracting technical assistance. Under the Nordic Climate Partnership, NEFCO will help identify promising projects, connect Ukrainian project developers with international partners and identify funding options.

"The aim of the Nordic Climate Partnership is to turn ambitious climate goals into projects that appeal to investors and meet high integrity standards. By bringing together Ukrainian project developers and Nordic institutions with the experience, finance and demand for credibly verified emission reductions, we can help attract investment that benefits the climate and supports Ukraine's green recovery," said Dennis Hamro-Drotz, Acting Head of Department for Special Funds at NEFCO.

The Ministry of Economy and Environment of Ukraine will coordinate implementation of the Memorandum through the Green Transition Office, an independent advisory body under the Ministry.

The next step is to identify priority projects for joint implementation and explore options for attracting funding.

Background

Cooperation between Ukraine and NEFCO on environmental and climate investment has continued since 2010, when the parties signed a framework agreement. The new memorandum deepens this cooperation and aims to combine Ukraine's significant climate mitigation potential with the experience, investment and demand for high-integrity climate action of the Nordic countries.

NEFCO, the Nordic Green Bank, is an international financial institution owned by five Nordic countries: Denmark, Finland, Iceland, Norway and Sweden. It helps scale up Nordic green solutions and attract public and private green investment. Together with clients and partners, it delivers concrete, long-term results.