The FINANCIAL -- The European Bank for Reconstruction and Development (EBRD) is continuing its efforts to develop sustainable energy sources and to promote energy efficiency in Ukraine, with a new US$ 100 million financing programme, according to Raiffeisen Bank Aval.
The EBRD’s Sustainable Energy Financing Framework was approved by the Bank’s Board of Directors at the end of 2013, and aims to inject new skills into the energy sector in Ukraine, backed by project financing via the domestic banking network. By promoting investment in energy efficient technologies the project will help Ukraine gradually reduce its overall energy requirements and improve the environment.
Raiffeisen Bank Aval – a long-term financial partner of the EBRD in Ukraine – is the first bank to sign up to the new framework, with financing from the EBRD of US$ 20 million.
Raiffeisen Bank Aval, and other banks expected to join the programme later, will provide individual loans to eligible local companies that are developing energy efficiency and renewable energy projects in Ukraine.
The Ukraine Sustainable Energy Financing Framework follows in the footsteps of the Ukrainian Energy Efficiency Programme (UKEEP), and which successfully financed 77 energy efficiency projects around Ukraine through five financial intermediaries during 2007-2013.
One such project was the EBRD’s financing for Ukraine’s leading producer of fats, margarines, sunflower oil and biofuel pellets. That funding supported the introduction of efficient new equipment that helped the company save 9.1 million cubic metres of gas per year.
The UKEEP also paved the way for the establishment of a carbon lending market in Ukraine.
The EBRD is the largest financial investor in Ukraine. As of 1 January 2014 the Bank had committed €8.7 billion (US$ 11.9 billion) through 321 projects in Ukraine, according to Raiffeisen Bank Aval.