Green Financing in Action: How the State Stimulates Energy Efficiency and Business Decarbonization

From Idea to Financial Instrument

Ukraine has taken another step toward energy independence.
The State Agency on Energy Efficiency and Energy Saving of Ukraine, together with Ukrgasbank, has launched a new program for interest rate compensation on loans for energy efficiency and decarbonization.

The program is implemented within the framework of the State Fund for Decarbonization and Energy Efficiency Transformation of Ukraine and provides compensation of up to 12% per annum, or up to 14% when using Ukrainian-made equipment.
Thus, investments in the modernization of enterprises, renewable energy, and energy services are becoming more accessible than ever before.

🔗 How to join: applications can be submitted via the official website of the State Agency on Energy Efficiency
or at Ukrgasbank branches, which is the first partner bank of the program.

First Results Already in Practice

Ukrgasbank has already issued the first loan for the construction of a 12 MW solar power plant, which will generate more than 9,900 MWh of clean electricity annually and reduce CO₂ emissions by 4,000 tons.
Two more projects with a total capacity of 25 MW are currently under implementation. After commissioning, they will generate over 22,000 MWh per year and reduce emissions by approximately 9,000 tons of CO₂.

Participants in the program may include individual entrepreneurs (FOPs), businesses, as well as public and municipal enterprises implementing projects in the fields of energy efficiency, heat and water supply, renewables, or energy services.
The maximum loan amount ranges from ₴5 to ₴90 million, with a term of up to 10 years, and a base rate of up to 21% per annum (significantly lower after state compensation).

Transparency and Effectiveness

Interest compensation is provided monthly, with funds transferred directly to the borrower through an authorized bank.
The main condition is targeted use of funds and verified results.

Projects must ensure:

• at least 15% improvement in energy efficiency;

• at least 20% reduction in CO₂ emissions;

• at least 50% substitution of traditional fuels with renewable sources.

If Ukrainian-made equipment (≥70%) is used, the compensation increases to 14% per annum — providing an additional incentive for local manufacturing and national business support.

Financial Motivation for a Green Economy

“This is only the beginning! Ahead — new banks, new agreements, and even more opportunities. Energy efficiency in Ukraine is becoming profitable and accessible — just as it should be,”
— emphasized Hanna Zamazeeva, Head of the State Agency on Energy Efficiency.

The program builds a financial bridge between business, government, and climate goals, stimulating the development of renewable generation, local manufacturing, and emission reduction.
It is a key step toward a real green transformation of Ukraine’s economy, where financial policy directly supports energy resilience.

For the Global 100 RE Ukraine community, this mechanism exemplifies how finance becomes a catalyst for energy transformation.
Here, loans work not only for the economy but also for energy security, climate responsibility, and technological modernization.

Energy efficiency under the interest of trust is not just a program —
it is a strategy for the future, where every invested hryvnia returns as energy, sustainable development, and confidence in tomorrow.