Nefco continues to advance green projects in Ukraine: 33 public buildings in Chernivtsi undergo energy efficiency modernisation

The project encompassed the capital renovation of 16 schools, 15 daycare centres, and 2 healthcare institutions, and involved the thermal modernisation of building envelopes and replacement of heating systems. The improvements resulted in primary energy savings of 39%. With support from Sweden and E5P, the project has directly benefited approximately 17,800 children and staff, and 23,000 patients, while also boosting the city’s capacity to accommodate internally displaced persons (IDPs) and provide them with access to essential social services. 

Nefco has a well-established history in Ukraine and has undertaken numerous green projects even before the Russian invasion. These investments aim to provide Ukraine with an EU-aligned pathway for sustainable reconstruction and a faster green transition.

As part of this latest initiative 33 public buildings in Chernivtsi — including 16 schools, 15 daycare centres, and 2 healthcare institutions, previously adversely affected by energy inefficiency and heat loss—have undergone significant capital renovation, with support from Sweden and the Eastern Europe Energy Efficiency and Environment Partnership (E5P).

“Sweden is a longstanding partner to Ukraine. Through this initiative, Sweden is supporting Ukraine in its efforts to increase energy efficiency of Ukraine and compliance with EU regulations,” says Kasper Andersson, Counsellor, Deputy Head of Mission, Embassy of Sweden in Ukraine.

“It is important to support energy efficiency investments in Ukraine because it creates energy security and energy independence. On behalf of all the E5P donors, we would like to thank Nefco for successfully implementing this project in Chernivtsi with such a high social impact,” adds Camilla Otto, Director, Donor Partnerships at the European Bank for Reconstruction and Development (EBRD), the fund manager of E5P.

The energy efficient improvements have reduced energy consumption, resulting in primary energy savings of 39%. These changes are estimated to save the municipal budget around EUR 1.73 million annually. Moreover, the project has enhanced the indoor environment, ensuring a comfortable temperature range of 19–22°C, improved air quality, and better lighting, benefiting approximately 17,800 children and staff and 23,000 patients. The project has also bolstered Chernivtsi’s capacity to accommodate newcomers and offer them access to essential social services.

“The Chernivtsi City Council initiated this important project to change the quality of life of residents and bring the conditions of stay in day-care centres and educational and medical institutions to a completely different qualitative level,” shares Roman Klichuk, Mayor of Chernivtsi. “Thanks to the cooperation and support of Nefco, Chernivtsi gained practical experience in an integrated approach to the development and implementation of energy efficiency projects.”

Photo: School children in an energy-efficiency modernised school in the city of Chernivtsi – Nefco

Construction began in 2018 and almost all facilities were completed before the full-scale invasion, but an additional grant was provided for one more building, set to be finished by September 2024. The project was co-financed by a Nefco loan of EUR 4.4 million, the E5P grant funding of EUR 3.8 million, and a local contribution of EUR 2.6 million — totalling EUR 10.8 million.

In light of the full-scale war, Ukraine needs significant reconstruction and financial development support over several years to overcome the destruction caused by the conflict. The Nefco Green Recovery Programme for Ukraine provides grants and technical assistance for green recovery measures to municipalities in government-controlled areas of the country. 

“We at Nefco are uniquely positioned to adequately address environmental recovery needs together with municipalities in Ukraine. More than ever, we are glad to have supported the implementation of such a broad and impactful energy efficiency project. This holds extreme importance due to Chernivtsi’s role as a hub for refugees and aligns with our commitment to build back Ukraine greener and better,” says Julia Shevchuk, Chief Investment Adviser at Nefco.

Photo: Energy-efficiency modernised day-care centre in the city of Chernivtsi – Nefco

The implemented measures include two main groups: the thermal modernisation of building envelopes and heating system replacement. In particular, the project involved the insulation of walls, roofs, and floors, facade repair, improvement of ventilation systems, and installation of heat recovery ventilation systems and district heating substations. New energy-saving windows and doors were also installed, and outdated luminaires were replaced with LED lamps.

Since 2010, Nefco has financed over 300 projects in Ukraine and is cooperating on three projects in Chernivtsi. Together with E5P, Nefco has completed four energy efficiency investment projects and implemented two energy-efficiency programmes in Ukraine.

More information about the project:

Read a case story about the Chernivtsi project

Read a fact sheet about the Chernivtsi project

Watch a video from Chernivtsi

For further information, please contact:

Julia Shevchuk, Chief Investment Adviser, +380 50 358 3518

Josefin Hoviniemi, Vice President, Communications, +358 50 464 6995

About E5P

The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a multi-donor and multi-International Financial Institution (IFI) support fund created thanks to an initiative of the Swedish Presidency of the European Union in 2009. The E5P fund for Ukraine totals EUR 210 million, representing pledges made by the European Union as the largest contributor to the fund and Sweden as the largest bilateral contributor supporting Ukraine, as well as Denmark, Estonia, Finland, Germany, Iceland, Ireland, Latvia, Lithuania, Norway, Poland, Slovakia, Switzerland and the United States. Ukraine is also a donor to E5P with EUR 20 million. The E5P grants are used alongside the IFI loans to complement municipal infrastructure investments to boost Ukraine’s energy efficiency while also having a beneficial impact on the environment and combating climate change. Until today, there are 26 investment projects supported by E5P across Ukraine with a total investment volume of over EUR 1 billion. Read more at

Photo: Energy-efficiency modernised school in the city of Chernivtsi – Nefco

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