NEFCO chairs multilateral environment programme

The E5P promotes investments in energy efficiency. Photo: Patrik Rastenberger

NEFCO has assumed the chairmanship in the Steering Group of the Eastern Europe Energy Efficiency and Environment Partnership (E5P). The E5P, which was launched by a Swedish initiative in 2009, commenced operations in 2011. The E5P donates funding for environmental projects to supplement lending by international financial institutions.

The current donors to the E5P are Denmark, Estonia, the European Commission, Finland, Iceland, Latvia, Lithuania, Norway, Poland, Sweden the USA and Ukraine.

“A range of energy projects are now being prepared by district heating utilities with assistance from international financial institutions such as NEFCO and the European Bank for Reconstruction and Development (EBRD),” says Senior Adviser Johan Willert from NEFCO.

NEFCO supports cost-effective environmental projects which are of demonstrable interest to the Nordic countries. In the district heating and overall energy sector, this generally translates to the reduction of harmful emissions such as carbon dioxide and other greenhouse gases detrimental to the environment. Investing in energy efficiency in district heating systems fulfils NEFCO’s funding criteria because it is a cost- efficient way to reduce greenhouse gas emissions utilising Nordic experience and know-how.

“The E5P is instrumental not only as a funding mechanism, making investments affordable, but it also serves as an important dialogue platform with the Ukrainian government on key policy issues such as the need to reform current tariff structures to achieve full cost recovery for district heating services provided. I’m confident that the E5P will pave the way for successful projects, says Johan Willert.

Compared to other countries, Ukraine is currently spending, proportionally, large amounts of its budget on energy in general, and district heating in particular. Improving energy efficiency will have a short-term positive effect on the overall performance of the economy.

From a long-term perspective, investments in environmental infrastructure will be a necessary step for Ukraine to continue to harmonize its development to comply with the EU’s environmental norms and legislation as well as with international conventions. Ukraine has also set an ambitious goal to increase the share of energy produced from renewable energy sources to 20% by 2020, a process that will further reduce emissions, and contribute to a more environmentally sustainable energy sector in Ukraine.

Learn more about the E5P-programme
Learn more about EBRD
Read more about a recent NEFCO investment in energy efficiency

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