The Norway-Ukraine Energy Efficiency Initiative aims to scale up the use of external municipal financing to achieve energy efficiency in public buildings, strengthened self-governance and sustainable procurement practices.


The initiative is financed by the Norwegian Ministry of Foreign Affairs and managed by Nefco. Norway aims to contribute with EUR 20 million of grant financing to the programme.

The focus is on:

  • Renovation of socially important municipal buildings, such as schools, day-care centres and health care facilities. The aim is to reduce energy consumption and increase the lifetime of the buildings.
  • Demonstration projects that benefit vulnerable groups, including internally displaced persons from the conflict areas in South-Eastern Ukraine.
  • Reducing the consumption of energy generated from fossil fuels, reducing emissions of CO2 and contributing to increased energy security.
  • Enabling municipalities to govern themselves by attracting external financing and making local investment decisions.
  • Fighting corruption through best practices in procurement and project implementation.

Available funding

The programme provides blended funding consisting of loans and grants as well as technical assistance and project support.

The funding is divided between support to smaller demonstration projects combined with soft loans from the Facility for Energy Saving Credits and larger projects for which Nefco will provide loans from its Investment Fund.

The beneficiaries are expected to provide at least 10 per cent of the project cost from their own funds.