6 Dec 2023 15:25

Germany, EIB to provide Ukraine with 20-mln-euro grant to promote green transition

MOSCOW. Dec 6 (Interfax) - The German Federal Ministry of Economic Affairs and Climate Action (BMWK), the European Investment Bank (EIB), and the Ukrainian Restoration Ministry have agreed to sign a 20-million-euro grant for the Renewable Energy Solution Program (RES).

Announced at the recent United Nations Climate Change Conference (COP28), the grant is being provided by the International Climate Initiative (IKI) to EIB Global's IKI Fund, which was set up in partnership with the German government to foster green investments, Ukrainian media have reported with reference to a statement available on the EIB website.

"With this contribution, the government of Germany intends to support the transition of energy systems and green reconstruction in line with the goals of the Paris Agreement and Ukraine's path towards the European Union. It will be another important building block in longstanding German-Ukrainian cooperation in the International Climate Initiative (IKI) and the German-Ukrainian Energy Partnership," it said.

The program would be instrumental in implementing renewable energy solutions in public buildings in Ukrainian municipalities, i.e. schools, hospitals, and kindergartens, and improving the energy autonomy of critical public buildings, particularly through integrating solar energy systems, biomass energy solutions, geothermal heat pumps, and battery storage, it said.

This initiative should support municipalities in synergy with existing EIB framework loans in order to leverage additional funds for climate action, such as the 300-million-euro Ukraine Public Building Energy Efficiency (UPBEE) Program and two recovery programs worth a total of 540 million euros. Plans are also in place for the RES Program to support similar EIB framework loans in the future, it said.

Germany provided over 200 million euros to support Ukraine's energy sector in 2022, and IKI is currently funding 16 projects in Ukraine with a total approved budget of 293 million euros, it said.

Since the start of the crisis in 2022, the EIB has offered immediate relief to Ukraine amounting to 1.7 billion euros to finance emergency repairs to its infrastructure. The bank has also provided a 4 billion-euro credit line to support the integration of refugees from Ukraine in EU countries.