Supporting the national energy efficiency fund and the climate-friendly reform agenda (S2I) in Ukraine

The building sector is the largest energy consumer in Ukraine with a share of 33%, followed by the industry and transport sectors. With the support of the BMWK and the EU Commission, the Ukrainian government has developed a concept for an Energy Efficiency Fund (EEF) that finances energy efficiency measures for buildings. This is intended to reduce energy costs of households. Poorer households also need fewer energy-related subsidies. The resulting savings in the state budget are in turn reinvested in further energy efficiency measures (S2I principle). The aim of the project is to support the Ukrainian government in the further strategic development of the Energy Efficiency Fund (EEF) with the aim of visibly increasing the contribution of the EEF to the achievement of the climate targets. Thus, the project implements targeted technical capacity building of both the EEF staff and those implementing the projects (applicants, energy auditors and construction companies).

Project data

Countries
Ukraine
IKI funding
7,300,000.00 €
Duration
05/2018 till 02/2026
Status
open
Implementing organisation
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner
  • Ministry for Communities and Territories Development of Ukraine
  • Ministry of Infrastructure - Ukraine
  • Ministry of Regional Development, Construction and Communal Living - Ukraine*

State of implementation/results

  • In 2018 and 2019, the structures of the Energy Efficiency Fund (EEF) were established and the first payments were made into the EEF by Ukraine, Germany and the EU. In 08/2019, the “Energodim” programme was launched, with which the EDF provides grants to homeowners' associations for thermal modernization measures in large apartment buildings.
  • In the initial phase, the project also offered a “First Movers” program, which additionally supported the first 15 participants in the Energodim program by covering project preparation costs. To date, seven of these owners' associations have completed the modernizations in full.
  • By August 2024, a total of 170 modernization projects supported by the EDF had been successfully completed. The annual CO2 reduction of these projects amounts to 24.3 tons of CO2. The total cost of the completed projects amounts to around UAH 973 million (approximately EUR 22 million).
  • The ongoing armed conflicts following the Russian invasion of Ukraine since 02/2022 have had a major impact on the conditions for project implementation. Thousands of residential buildings have been destroyed or severely damaged as a result of the war.
  • In November 2022, the EDF launched the “VidnovyDIM” program, which is financed exclusively by the EU and Ukraine to quickly repair (minor) war damage. As this is an emergency aid measure, it does not focus on energy efficiency.
  • At the same time, however, the EDF is continuing the “Energodim” program. Despite the economically challenging conditions for building refurbishment, up to 500 refurbishment projects are currently being continued. Since 07/2023, the EEF has again been accepting new applications for simple renovation measures, and since July 2024, applications for complex renovations have also been accepted. Around 50 new applications have been received since then.
  • The EDF supervisory authority approved the pilot phase of a new program to promote the installation of renewable energy systems, in particular photovoltaic systems and heat pumps, in apartment buildings in 05/2024. This program is called “GreenDIM”. Not only HoAs are eligible, but also buildings managed by Housing and Building Cooperatives (HBCs). The volume of the pilot phase amounts to 1 million euros and is financed from the EEF's statutory capital. As of 08/2024, the EEF has received a total of 23 applications for this program.
  • In 12/2023, the EDF Supervisory Board published a new strategy for the period 2024-2026, which takes account of these changed framework conditions: In the pessimistic scenario, 369 buildings are to be renovated in 2024-2026, in the optimistic scenario 808 buildings.
  • Since 04/2019, 114 trainers for energy auditors have been trained at 34 universities in Ukraine, who in turn have conducted 57 trainings with a total of 606 participants.
  • In 2021, a manual for the training of energy auditors of multi-family buildings was developed for the partner universities as part of the EEF. Based on this experience, three online seminars were conducted in 10/2021 for 91 Ukrainian construction experts to strengthen the quality of service providers in the proper thermal insulation of multi-family buildings.
  • The project supports the digitalization of the EDF and its processes. Since February 2020, funding applications can be submitted and tracked online. A digital marketplace for brokering construction services between homeowners and construction companies has been available since 05/2023. An online calculator for the preliminary calculation of project and financing costs was introduced at the end of 2023.
  • Until the end of 2023, the project successfully managed the “IKI Interface Ukraine”. The interface promoted intensive exchange between all IKI implementing organizations active in Ukraine through workshops, newsletters and communication products, such as the website www.iki-ukraine.org.

Latest Update:
06/2025

Legend:

  • Current Project
  • Previous project
  • Follow-up project
  • Topic
  • Country selection

The link has been copied to the clipboard

Related news

A street with apartment buildings
07/25/2023

Empowering Homeowner Associations

read more Empowering Homeowner Associations
[Translate to English:]
02/28/2023

Climate and biodiversity policy during the war in Ukraine

read more Climate and biodiversity policy during the war in Ukraine
Comprehensive restoration of buildings; Photo: Tyurin Danyil Olehovich
06/18/2019

Ukraine: More know-how about energy efficiency and suitable funding

read more Ukraine: More know-how about energy efficiency and suitable funding

Related Publications