Within the SMARTER4EU project, implemented with the support of the EU Life Clean Energy Transition program, the European-Ukrainian Energy Agency has prepared two toolkits for developers, investors, and financial institutions. These documents contain practical recommendations for introducing green financing models in Ukraine that combine environmental certification of housing with preferential financial products, including the “green mortgage.”
The initiative aims to create an effective mechanism in Ukraine for certifying residential projects according to international standards and to provide the market with access to financial instruments that improve housing quality, reduce credit risks, and contribute to the growth of its market value.
The toolkit for developers and investors covers the current state of the housing stock, the concept of the “green building,” the mechanism for implementing the “green mortgage,” the role of municipalities and grant programs, as well as examples of implemented projects in the EU.
The toolkit for financial institutions describes the economic prerequisites for green financing, the reduction of credit risks due to housing energy efficiency, a model of cooperation among key market participants, and compliance with the EU Taxonomy regulations.
In Ukraine, about 30% of final energy consumption falls on the residential sector. Energy-efficient construction helps reduce the load on the energy system while strengthening the country’s energy security.
European legislation already requires a transition to nearly zero-energy buildings and reducing the toxicity of building materials. These requirements will also be gradually implemented in Ukraine. Green financing is a tool that allows adaptation to new standards while minimizing risks for the banking sector.
Financial institutions gain the ability to lower credit risks and build stable portfolios without losing profitability. Developers receive a competitive advantage, consumer trust, and access to international support. For future homeowners, it means high-quality, energy-efficient housing with lower costs and affordable mortgages. For the state, it means modernization of the housing stock, increased energy independence, and achievement of climate goals.
The “Green Buildings” and “Green Mortgage” programs are aimed at engaging banks, developers, local governments, and condominium associations in implementing sustainable housing construction and modernization approaches. The initiative also provides for methodological and expert support for market participants interested in developing related solutions.
