The Decarbonization Fund has issued its first loans for energy efficiency projects.

The State Decarbonization Fund has already issued 21 million UAH in loans for the implementation of seven energy efficiency projects. An additional 21 projects, amounting to 320 million UAH, are at various stages of preparation, with most ready for financing.

This was reported by the chairperson of the fund, Olesya Mishchenko, during a meeting of the energy committee of the Verkhovna Rada, as reported by Interfax-Ukraine. 

The funded projects are expected to save over 500 MWh of electricity, which translates to an annual savings of 5 million UAH, and a reduction in CO2 emissions by 20%, or 620 tons. According to Mishchenko, the first loan was issued on September 20 to an energy service company that plans to replace lighting, achieving nearly a 50% savings in electricity from the baseline level.

The chairperson noted that the main requirements for projects eligible for funding from the decarbonization fund are a reduction in electricity consumption and CO2 emissions. Applications for loans can be submitted by legal entities, individual entrepreneurs, municipal and state enterprises, as well as local government bodies.

According to the head of the State Energy Efficiency Agency, Hanna Zamazieieva, the fund has currently accumulated 1.4 billion UAH, with 859 million UAH allocated in this year’s budget.

Recall that the JSC "Decarbonization Fund of Ukraine" was established in 2012. As of January 24, 2024, 100% of the fund's shares will belong to the state represented by the State Agency for Energy Efficiency and Energy Saving. The funds from the FDU are to be divided 50/50 and directed towards reimbursing a portion of loans for energy efficiency measures in state banks and providing preferential loans directly from the fund.