The Nordic Environment Finance Corporation, NEFCO and the Ukrainian government signed on Thursday a new framework agreement, which acknowledges NEFCO’s status as an international financial institution in Ukraine. This will pave the way for new energy efficiency projects in the country.
NEFCO has financed environmental projects in Ukraine since 2003. However, these financial arrangements have not included the framework agreement, and this has prevented NEFCO from financing ventures such as municipal energy projects in the country.
”We currently have over 70 projects in the pipeline in Ukraine, and many of them can now be implemented thanks to the new framework agreement, which opens up new possibilities for innovative environmental financing”, says NEFCO’s managing director, Magnus Rystedt.
NEFCO has so far approved 19 million EUR finance for 29 projects valued at 55 million EUR in Ukraine. The projects have mainly been in the energy, agricultural, industrial and banking sectors. Most of the projects have included technological measures to reduce energy consumption and the releases of carbon dioxide or other climate gases.
The Ukrainian loans currently account for 7.9 per cent of funds disbursed by NEFCO’s two financial instruments; the Investment Fund and the Nordic Environment Development Fund.
Read more about the National Agency for Energy Efficiency (In Ukrainian)