On July 23, 2020, Acting Minister of Energy of Ukraine Olga Buslavets signed an Agreement on the contribution between Ukraine and the EBRD on Ukraine’s participation in the Eastern Europe Energy Efficiency and Environment Partnership (E5P). The signing of the Agreement will allow Ukraine to continue participating in the E5P.
The agreement provides a contribution of 10 million euros to the E5P, which will provide access to financial support in the form of grants and technical assistance for energy efficiency and environmental improvement projects, which should result in significant reductions in electricity consumption, reduction of carbon dioxide emissions and other greenhouse gases.
Ukraine’s participation in the preliminary phase of the E5P upon payment of a contribution of 10 million euros allowed to attract funding for the implementation of 22 projects with a total value of over 516 million euros.
The E5P is a €220 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, Belarus joined in 2017, and Azerbaijan in 2019.
The E5P merges financial contributions from the European Union and a group of 23 nations, including countries which are benefiting from the fund. The contributions are used as grants to support municipal sector projects. The projects approved for implementation in Ukraine have shown that the E5P grants can leverage on average investment volumes that are five times the size of the committed grants. The grant allocations are flexible and recognise priorities of each recipient country with the overall aim to reduce energy use, pollution and greenhouse gas emissions. The fund also supports policy dialogue and regulatory reform.
The EBRD acts as the fund manager of E5P providing administrative support to manage the fund on behalf of all the stakeholders.
More details: https://ukraine.e5p.eu/