On April 21, 2018 in Washington, the European Union, the International Finance Corporation (IFC, a member of the World Bank Group) and the Government of Germany signed an agreement to establish a multi-donor fund to co-finance the Ukrainian Energy Efficiency Fund. The agreement was signed by Johannes Hahn, EU Commissioner for European Neighborhood Policy and Enlargement Negotiations, IFC CEO Philippe Le Houérou and Juergen Keinhorst, Head of the Division of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety of Germany.

“IFC, a member of the World Bank Group, the European Union, and Germany signed agreements today to support the Ukrainian government’s work in reducing energy waste and greenhouse gas emissions in the residential sector. Agreements were signed by IFC and EU likewise IFC and Germany to set up a new multi-donor fund to help boost energy efficiency in Ukraine. Under the agreement, IFC will initially manage up to 53 million euros of funding from the EU (43 million euros) and Germany (10 million euros),” an official statement reads.

Earlier, on April 18, Vice Prime Minister/Minister of Regional Development, Construction, Housing and Communal Services of Ukraine Hennadii Zubko signed an agreement between the Government of Ukraine and the EU on the provision of irrevocable financial assistance in the amount of 50 million euros. These funds will be injected through the newly established Multi-Donor Fund (EU, IFC, German Government) to co-finance projects of the Ukrainian Energy Efficiency Fund and support the energy efficiency reform in Ukraine.

"An idea of establishing an Energy Efficiency Fund was started from scratch at the end of 2015. We succeeded in persuading our European partners who believed in the possibility of creating a modern instrument for implementing energy-efficient measures in the residential sector. The Fund is a complex system which combines the financial resources of several donors, and management by international organizations stipulated for. The signing of the agreements proved possible due to the meticulous work of the Ministry of Regional Development, international partners, MPs and experts. From the beginning of our cooperation with the German Government, and the European Union and the Parliamentary Corps, we have succeeded in implementing a legislative breakthrough in the housing sector and energy efficiency, which had previously stood idle for over ten years. There were passed basic laws, such as "On the Peculiarities for the Realization of a Right to Property in a Multi-Apartment Building", "On the Energy Efficiency Fund", "On the Energy Efficiency of Buildings", "On Commercial Accounting for Thermal Energy and Water Supply", the new Law "On Housing and Communal Services". By the end of this year, we should apart from launching the Energy Efficiency Fund, which will provide the population with an effective financial mechanism for the thermal modernization of residential buildings, also adopt all necessary regulations so that in 2019 the Fund could start operation at "full capacity". Moreover, the IFC can help with the filling of the Supervisory Board of the Fund with professional staff, as well as participate in the creation of its products and programs," said Hennadii Zubko.

 “We are pleased to support energy saving measures in Ukrainian homes that will have a direct impact on the daily lives of citizens and stimulate the local economy,” said Johannes Hahn, EU Commissioner for European Neighbourhood Policy and Enlargement Negotiations during the ceremony of signing the document in Washington. “I'm glad we have an experienced partner in IFC to efficiently implement this programme with the Ukrainian government.”

IFC CEO Philippe Le Houérou said: “Climate change is a global threat and addressing it requires significant investment. This partnership is an important step in enabling us to use public funds to leverage private sector resources and scale up climate-smart and energy-efficient investments in Ukraine.”

Svenja Schulze, German Federal Minister for Environment, Nature Conservation and Nuclear Safety, said: “Energy efficiency is an investment in the future: it enhances security and resilience, creates jobs, and improves the environment. The establishment of the EEF will support Ukraine in transforming subsidies to investments and reducing pressure on the public budget.”