2010 - present
Supported with funds from
the Swiss Confederation
The IFC Ukraine Residential Energy Efficiency Project is designed to
create an effective legal and institutional platform to support
Ukrainian homeowner associations and housing management companies in
obtaining access to finance for the energy-efficient modernization of
multifamily buildings. Through the project, IFC aims to facilitate
energy efficiency investments in Ukraine’s residential sector.
The Challenge
Ukraine among the world’s most energy intensive economies. The
residential housing sector in Ukraine consumes approximately 25 percent
of the country’s electricity and 40 percent of its heat energy
resources.
The country’s housing stock is old and inefficient. At least 80 percent
of needed refurbishments are related either to energy saving or energy
distribution.
Poorly insulated buildings can lose from 30 percent to 50 percent of
their heat to the environment. Extreme energy inefficiency combined with
the overall decrepitude of much of Ukraine's housing stock poses an
enormous challenge to creating comfortable cost-effective living for
citizens. These problems also contribute significantly to the country's
greenhouse gas emissions (GHGs).
The residential housing sector represents one of the best opportunities
for achieving energy savings and thus reducing the region's GHG
emissions. Investments with simple payback terms can result in heat
energy savings of 30 to 40 percent, and the reduction of gas consumption
by 25 to 30 percent.
Some of the principal barriers to residential energy efficiency in
Ukraine relate to the undeveloped status of homeowner associations,
absence of targeted state support and lack of control over energy use.
Other issues include regulated energy prices, the inability of financial
institutions to lend to the sector because of contradictions in
legislation concerning homeowner associations, and a lack of knowledge
about the benefits of residential energy efficiency.
IFC Approach
- Develop legislation in close cooperation with government
agencies to enable local homeowner associations and housing management
companies to access finance to improve energy efficiency in residential
buildings.
- Increase awareness about residential energy efficiency
among key market stakeholders by relationship-building and development
of information campaigns.
- Work with Ukrainian banks to develop and market
financially viable energy efficient housing loan products targeted at
homeowner associations and housing management companies for the purpose
of energy efficiency renovations to multifamily buildings.
For more information please contact: Grzegorz Stefan Gajda, Project Manager, GGajda@ifc.org
Share & Bookmark
