Ukraine to be built back greener with new programme

Nefco, the Nordic Green Bank owned by the Nordic countries, is introducing a new programme that paves the way for a greener recovery for the war-damaged Ukraine. The Nefco Green Recovery Programme for Ukraine will provide financial and technical assistance to municipalities to conduct repairs and rebuild in an environmentally sound way and support them in accommodating internally displaced people and designing Local Green Recovery Plans with Nordic support and competence.

During the Russian invasion, severe damage has been caused to people, infrastructure and the environment in Ukraine. The Nefco Green Recovery Programme for Ukraine is planned to be set up as a multi-contributor programme to support the green economy and transition in Ukraine’s recovery process. The aim is to enhance and finance projects focused on rebuilding infrastructure at the municipal level to ensure that Ukraine is built back greener and better.

Nefco has already started practical recovery project preparations in collaboration with its existing network of municipal clients, a step that has been welcomed by the Ukrainian Ministry of Communities and Territories Development.

“The level of critical infrastructure damage caused by the military invasion is tremendous. There is an urgent need for support to small and medium-sized municipalities for rebuilding Ukraine. We believe Nefco has the necessary experience in reconstruction and modernisation and greatly appreciate its help,” said Oleksiy Chernyshov, Minister for Communities and Territorial Development of Ukraine.

Nefco is uniquely positioned to support the reconstruction process and adequately address environmental recovery needs together with municipalities in Ukraine. During the last decade, Nefco has partnered with over a hundred Ukrainian municipalities and successfully financed and implemented environmentally sound projects in energy efficiency, district heating and other municipal services.

“With our Ukraine-specific expertise and 100% focus on green financing, Nefco is exceptionally well-positioned to further catalyse green reconstruction and accelerate sustainable societal development in Ukraine. We are confident that together with our Nordic owners and the exceptional know-how available in the Nordics, we can make a positive difference to people, society and the environment of Ukraine,” says Trond Moe, Managing Director of Nefco.

The Nefco Green Recovery Programme for Ukraine aims to work long term towards a green recovery in Ukraine together with Nordic, European and multinational contributors and institutions. It will work directly with municipalities and help them to plan and finance sustainable recovery from the damage caused by the Russian military invasion of Ukraine.

The programme may comprise individual initiatives from various contributors. Contributions for existing facilities and initiatives managed by Nefco can be repurposed towards the new programme given the urgent need for recovery and supplemented by new initiatives and contributions. The programme will be available on an ongoing basis and provide financial and technical assistance to municipalities for various repair and rebuilding projects to be executed in an environmentally sound way and support them in designing Local Green Recovery Plans.

Discussions with a number of potential contributors, including the Nordic governments, are already ongoing or planned. The aim is to initiate project preparations and commence implementation of the first set of projects before the end of 2022.

On a separate note, Nefco is also in negotiations with the EU to secure substantial funding for green recovery activities for Ukraine, with more information to follow as this process proceeds.

Further information

For more information on the Nefco Green Recovery Programme for Ukraine, please see or contact:

Ulf Bojö, Vice President Green Transition in Eastern Europe, Nefco, +358 40 527 3699

Josefin Hoviniemi, Vice President Communications, Nefco, +358 50 4646995

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