The Verkhovna Rada of Ukraine has amended the Budget Code of Ukraine to establish a special fund of the state budget “State Fund for Decarbonisation and Energy Efficiency Transformation”. The Fund will be replenished with revenues from the environmental tax levied on carbon dioxide emissions from stationary sources of pollution.

“In 2021, the National Energy Efficiency Action Plan until 2030 was adopted. Implementation of the Plan’s provisions required the identification of sustainable financial sources to achieve the goals and implement the measures. Today, this issue has become even more urgent given the need to implement reconstruction projects that are impossible without taking into account energy efficiency principles.

This is what the newly created Fund will be used for. In particular, it will be used to implement programmes to improve the energy efficiency of households, utilities, public buildings, micro, small and medium-sized businesses. Another area is the introduction of energy services and the development of decentralised energy production and storage systems.

The Fund will start operating from January 1, 2024, and the Ministry for Communities, Territories and Infrastructure Development is currently working on developing the Procedure for its functioning,” said Oleksandr Kubrakov, Deputy Prime Minister and Minister for Communities, Territories and Infrastructure Development.

The Fund is expected to be used for the following purposes:

• measures and targeted energy efficiency programmes;
• reducing the cost of obligations under loan and leasing agreements concluded for the implementation of energy efficiency measures and the introduction of energy services;
• fulfilment of debt obligations on loans obtained by the state for the implementation of such programmes;
• increasing the use of renewable energy sources and alternative fuels and reducing carbon emissions.