FELICITY II - Eastern Partnership and Central Asia Program

Technical and financial aspects hinder low carbon infrastructure finance. To reduce these barriers the project focuses on two sectors in its partner countries: residential energy efficiency and water and wastewater. On the national level, countries will be supported to create favourable framework conditions for infrastructure investments. Financial intermediaries will be strengthened to on-lend and structure climate finance. On the subnational level, experts and decision makers are supported to prepare bankable low carbon investment projects. This technical assistance will be coupled with a financial contribution by an international finance institution to ensure low-carbon infrastructure projects are implemented and scaled up. Through participating in infrastructure alliances, countries will benefit from learning from regional and international best practices. The project will directly contribute to strengthening the role of sustainable infrastructure in NDC implementation.

Project data

Countries: Kazakhstan, Moldova, Ukraine, Uzbekistan
IKI funding: 19,996,046.66 €
Included preparation phase: 256,046.66 €
Duration: 01/2022 till 02/2028
Status: open
Implementing organisation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner: Ministry for Communities and Territories Development of Ukraine

Ministry of Economy and Finance of the Republic of Uzbekistan

Ministry of Energy - Kazakhstan

Ministry of Energy of the Republic of Moldova

Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan
Implementing Partner: Association "Energy Efficient Cities of Ukraine" (EECU)

Association of Water Utilities of Ukraine

Center for Environmental Initiatives Ecoaction - Ukraine

Climate Policy Initiative (CPI)

Electric Power and Energy Saving Development Institute

European Investment Bank

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State of implementation/results

The FELICITY II programme works closely with national and local agencies in partner countries to integrate energy efficiency into policies and legislation. The programme also supports its partners to develop innovative financial mechanisms and develop ambitious, climate-sensitive investment projects in the water, wastewater and building sectors. In the currently uncertain and complex geopolitical situation, FELICITY II's partner-oriented approach is crucial to creating opportunities to mobilise investment in low-carbon infrastructure.
In Kazakhstan, full design documentation was developed for the energy-efficient modernisation of a pilot multi-apartment building in Kokshetau. It was handed over to the city and homeowners for accessing state co-financing programmes and potential implementation of the modernisation measures.
Jointly with the Kazakh-German Energy dialogue led by the German Energy Agency (dena) and the EU Enable project, implemented by IWO e.V., FELICITY II is providing a comprehensive multi-level support for piloting and scaling of refurbishment of multi-family houses. Learnings are being integrated in the work of a National Project Office for fostering investments in large scale refurbishment.
A cooperation with Agence Française de Développement (AFD) was launched to pilot energy-efficient hospital modernisation and develop benchmarks, ready for international (climate) finance.
FELICITY II supports pilot planning for a new energy-efficient residential building in collaboration with the Kazakh construction corporation Shar Kurylys, which started in November 2025. The Kazakh Housing Company (KHC) will use this experience to structure an EIB-supported financing mechanism for a pipeline of similar projects. Additionally, a respective €50 million EIB loan is facilitated.
In Ukraine, on September 18, 2025, the €100 million EIB Ukraine Water Recovery (UWR) Framework Loan was ratified, and in January 2026, with the support of FELICITY II, a call for project proposals under the program was conducted. It received 165 applications with a total volume of €700 million.
In cooperation with the Ministry for Development of Communities and Territories of Ukraine, FELICITY II developed the Programme Procedures Manual for UWR, which includes selection criteria and assessment methodology for projects, defines procedures for fund utilisation, procurement, financial management, monitoring, and reporting for projects.
FELICITY II is supporting the process of developing a new edition of the State Construction Standards for the water and wastewater sector, aimed at modernising the industry according to EU directives, as Ukraine moves toward EU accession. Nine standards are officially included in the National Standardisation Work Program of the National Standardisation Body (NSB), meaning they are recognised for use in Ukraine.
FELICITY II is supporting the Ukrainian Ministry for Development of Communities and Territories, the Energy Efficiency Fund (EEF) and the EIB in developing a pilot €60 million loan program for energy-efficient reconstruction of war-damaged residential buildings. FELICITY II cooperates with two pilot municipalities, Kryvyi Rih and Mykolaiv, and a partner consortium, consisting of EIB, dena, IWO e.V. and Bauhaus Earth. To ensure a broad uptake of lessons, a strategic advisory group was established, including all relevant actors in the sector, the EEF, EU Delegation, city administrations and a wide range of Ukrainian NGOs). Synergies with activities of other IKI projects in the building sector are actively sought.
A concept study on reducing the embodied carbon of construction was conducted, based on a typical residential building in Mykolaiv. This study aims to raise awareness and introduce a whole-life-cycle carbon perspective to Ukraine’s post-war reconstruction, thereby supporting alignment with EU targets. The results and recommendations will be presented at various events within the framework of the New European Bauhaus Academy, which is being established in Ukraine with the support of GIZ.
A delegation from the Ukrainian municipalities of Mykolaiv and Kryvyi Rih visited Lithuania and Estonia to learn from successful modernisation practices for public and multi-apartment residential buildings. They explored one-stop-shop energy agency models, standardised renovation solutions, and financing mechanisms. The exchange helped municipalities to better understand how to integrate technical, financial, and managerial approaches into their projects.
As part of the FELICITY II technical assistance for the EIB and IKI funded Renewable Energy Solutions Programme (RES), first beneficiary batches have been selected, covering 47 municipalities and 69 facilities, including primarily hospitals, schools, lyceums and kindergartens. Project design documentation is underway for 23 buildings, with the first completions expected by end-April 2026 (under UNDP-led procurement).
In October 2025, at the launch of the RES, the Ukrainian Deputy Minister for Regional Development in the Ministry for Development of Communities and Territories, Alona Shkrum, encouraged municipalities to deploy renewable energy sources, obtain active consumer status and connect their facilities to the grid. This political push signals the government’s intention to involve municipalities more actively in the reconstruction of a green energy system.
Amendments to the Cabinet of Ministers Resolution No. 406 (07.06.2017) were enacted with advisory support from the RES GIZ team, to significantly simplify the installation of solar power plants on roofs and facades. This is expected to facilitate municipal implementation of projects on local energy resilience, with positive long-term climate benefits.
In Uzbekistan, in the city of Nukus, the planning phase for a pilot project for the renovation of a multi-apartment building in Nukus has successfully terminated. Already during the design phase, valuable learnings in the field of capacity development could be gained for further incorporation in a respective handbook. Currently, the preparation of implementation of works is underway with shared funding from FELICITY II and the Republic of Karalkpakstan.
FELICITY II concluded two studies aimed at improving investment opportunities in the residential sector, which have been presented to EIB and partner ministries. This will inform recommendations to the upcoming new renovation program 2026-2030, which is currently developed by the Ministry of Construction for the refurbishment of 14,000 multi-apartment buildings.
Recommendations for the update of building standards to the EU level have been provided and additional ones will be discussed and finalised in an expert workshop in spring 2026.
A project concept for energy-efficient refurbishment of public buildings in Uzbekistan, supported by FELICITY II, has been approved by the Ministry of Energy. FELICITY II has developed a pipeline of 600 public buildings, which can be included in the planned EIB-financed UZPBEE project. Currently, the interministerial commenting of a draft of a Project Assessment Document (PAD) is being finished. This process is the precondition for an official funding letter request from the Uzbek side to EIB.
In February 2025, Tashkent hosted the 1st CCFLA Central Asia Hub Forum, which brought together 100 participants including 25 cities representatives from three Central Asian countries. The focus was on bridging national policies with local initiatives and developing concrete project concepts to access climate finance.
In Moldova, the Ministry of Energy is supported with an embedded advisor for better coordinating energy efficiency funding programs (inter alia by EIB, AFD and KFW) and accelerating its implementation. In 2025, two loans were supported institutionally with 12 legal documents prepared.
FELICITY II is advancing its support for the setup of a comprehensive database for energy efficiency in buildings. The Energy Management Information System now contains data for more than 6300 public buildings and will automatically include consumption data. This enables managing the buildings and reducing energy usage, thereby saving emissions.
Together with GIZ’s Energy for Moldova project, the National Center for Sustainable Energy strengthens energy management practices in four pilot regions and established a concept to use savings sustainably.