Ukraine’s Decarbonization Fund: Early Results That Are Shaping the Energy Efficiency and Green Finance Market

Over one year and three months of full-scale operation, the Ukraine’s Decarbonization Fund has demonstrated results that go far beyond individual projects, contributing to the formation of a systemic approach to financing energy efficiency and decarbonization in Ukraine.

With 72 implemented projects, more than UAH 1.5 billion in direct financing, and over UAH 2 billion in total investments including private co-financing, these results signal not only strong market demand but also growing trust in a newly established public financial institution.

An Institution Built on a European Governance Model

The Fund officially launched its operations on 20 September 2024, issuing its first concessional loan. Today, it operates as a modern financial institution with a transparent three-tier corporate governance structure:

• the General Meeting represented by the State Agency on Energy Efficiency and Energy Saving of Ukraine,

• the Supervisory Board,

• and the Management Board.

This governance framework ensures transparency, effective oversight of public funds, and alignment of each financed project with national strategic objectives, in particular the National Energy and Climate Plan of Ukraine until 2030.

Strong Focus on Industry and Measurable Impact

Approximately 94% of supported projects are implemented in the industrial sector, where the largest potential for energy savings and emissions reduction is concentrated. At the same time, projects are also being implemented in municipalities and at critical infrastructure facilities across 17 regions of Ukraine.

A key strength of the Fund lies in its rigorous monitoring and verification of results:

• more than 132,000 MWh of annual electricity and heat energy savings — equivalent to the annual consumption of a city with 60,000–70,000 residents;

• nearly 40,000 tonnes of CO₂ emissions reduced each year.

These outcomes transform public financial support from a formal instrument into a practical mechanism for delivering Ukraine’s climate commitments.

Solar PV, Energy Storage and Energy Audits: Scaling Strategic Programmes

An important pillar of the Fund’s activities is the implementation of programmes that strengthen long-term energy resilience in the public sector:

• installation of solar PV systems with battery energy storage at 127 public buildings, with an estimated financing need of UAH 316 million;

• energy performance certification of public buildings, with applications submitted for 2,918 facilities;

• energy audits and smart metering programmes aimed at improving transparency and efficiency of energy consumption.

These initiatives are fully aligned with the requirements of the EU Directive 2023/1791, which emphasizes the exemplary role of public buildings in achieving energy efficiency targets.

Trust from Business, Regulators and International Partners

The Fund’s results were presented during an open session of the Supervisory Board attended by representatives of business, financial regulators and international partners. Positive assessments were expressed by the National Bank of Ukraine, the National Securities and Stock Market Commission of Ukraine, as well as representatives of the EU Delegation, the Energy Community, and international technical assistance programmes.

Companies already implementing projects with the Fund’s support highlighted fast access to financing, transparent conditions, and a high level of client-oriented service — factors that are critical for scaling up the energy efficiency and decarbonization market.

The Position of Global 100 RE Ukraine

For Global 100 RE Ukraine, the Decarbonization Fund represents a practical example of how a public financial institution can:

• combine climate objectives with economic efficiency;

• build trust between the state, business and international partners;

• lay the foundations for a green finance market and prepare the ground for future instruments, including emissions trading mechanisms.

Further scaling of such instruments is essential for accelerating decarbonization, expanding renewable energy deployment, advancing battery energy storage solutions, and strengthening Ukraine’s overall energy resilience.