Video: Energy-efficiency investment in Ukraine

Kyiv has implemented energy-efficiency measures in over 300 public buildings in the city and is currently implementing a new project together with Nefco. In addition to loan financing from Nefco the project received grant funding from the Eastern Europe Energy Efficiency and Environment Partnership (E5P).

Nefco is working closely with several partnerships and global organisations financing  environmental and climate projects globally. We are accredited as an implementing agency for the following partnerships or institutions:

The Eastern Europe Energy Efficiency and Environment Partnership

The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a EUR 200 million multi-donor fund initiated during the Swedish Presidency of the European Union in 2009 to encourage municipal investments in energy efficiency and environmental projects in the Eastern Partnership region. Initially active in Ukraine, in 2014 the fund formally extended its activities to Armenia, Georgia and Moldova and in 2017 to Belarus.

E5P participates in projects as a co-financier. The grants from E5P are used as an incentive for municipal clients to take loans provided by participating Implementing Agencies, for example when borrowing from Nefco or one of the other International Financial Institutions participating in E5P.

Contributors to the Ukrainian programme are the European Union, Denmark, Estonia, Finland, Germany, Iceland, Ireland, Latvia, Lithuania, Norway, Poland, Slovak Republic, Sweden, Switzerland, Ukraine and USA.

The Northern Dimension Environmental Partnership

The Northern Dimension Environmental Partnership (NDEP) works to improve the ecology of the Northern Dimension Area, covering north-west Europe from the Arctic and Sub-Arctic areas, including the Barents and White Seas, to the southern shores of the Baltic Sea. It includes all countries in this vicinity from north-west Russia in the east to Iceland in the west.

NDEP provides a strong international framework that promotes cooperation between partner governments, the European Commission, donors and international financial institutions (IFIs). The NDEP framework enables the creation of financing structures that combine loans, grants and local budget funding which can be used for priority environmental investments.

For environmental projects, NDEP grants complement loans provided by IFIs and these can in turn leverage further local and international funding. The NDEP grants offer an incentive to invest in environmental projects that may otherwise be financially unviable or unable to achieve satisfactory environmental targets without additional assistance.

Contributors are the European Union, Belarus, Belgium, Canada, Denmark, Finland, France, Germany, Netherlands, Norway, Russia, Sweden, and the United Kingdom.

The Green Climate Fund

The Green Climate Fund (GCF) is a new global fund created to support the efforts of developing countries to respond to the challenge of climate change. GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change. It seeks to promote a paradigm shift to low-emission and climate-resilient development, taking the needs of nations that are particularly vulnerable to the impacts of climate change into account.

It was set up by the 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2010, as part of the Convention’s financial mechanism. It aims to deliver equal amounts of funding to mitigation and adaptation, while being guided by the Convention’s principles and provisions.

EU Neighbourhood Investment Platform

Neighbourhood Investment Platform (NIP) is a mechanism aimed at mobilising additional funding to finance capital-intensive infrastructure projects in EU partner countries covered by the European Neighbourhood Policy (ENP) in sectors such as transport, energy, environment and social development. The NIP also supports the private sector, mainly through investment grants and risk capital operations targeting small and medium-sized enterprises.

NIP strives to pool grant resources from the EU budget and the EU Member States and use them to leverage loans from European Financial Institutions as well as contributions from the ENP partner countries themselves. In this way, the EU backs its neighbours’ priorities and supports them in carrying out key investments and boosting economic development.