FINTECC is beginning work in Ukraine, to support the implementation of resource efficiency technologies.
FINTECC already supports technology transfer in Early Transition Countries, the Southern and Eastern Mediterranean region, and Kazakhstan. We are now extending this work into Ukraine.
Technical innovation within the region remains low, despite having plentiful engineering human resources. The reasons for this include under-developed local supply chains and low market penetration for best available resource efficiency technologies. Ukraine’s policy environment is also currently less developed and does not incentivise the adoption of resource efficiency technologies.
Other barriers restricting the implementation of resource efficiency technologies include a lack of awareness and experience with the technologies, coupled with insufficient communication amongst stakeholders and end-users.
There is also limited reliable information around the costs and benefits of different technologies, making it harder for policy makers to make well-informed decisions. Investment in resource efficiency technologies with low market penetration is often seen as risky.
Ukrainian institutions often lack the capacity to support new and emerging markets for resource efficiency technologies. In addition, the financial products available from local banks are often unsuitable for technology transfer projects.
The perceived level of risk frequently results in unfavourable investment conditions for project developers.
Since late 2015, we’ve been working in Ukraine, in the following ways:
We offer incentive grants to help companies install or manufacture resource efficiency technologies. These include technologies that achieve energy, water or materials efficiency. Our grants are primarily for resource efficiency technologies with low market penetration and good replicability potential within their participating country.
Incentive grants are available as a complement to EBRD financing and can sponsor up to 25 per cent of the cost of the specific technology. The grants are payable after the installation and commissioning of the eligible resource efficiency technologies.
FINTECC provides companies in Ukraine with the following technical support:
The EBRD’s in-house energy and water efficiency specialists review energy, water and material efficiency potential in client operations and assist in identifying the best way to support them in implementing investment opportunities.
International specialists are available where necessary to conduct resource efficiency audits, helping companies to prioritise sustainable resource efficiency investments and understand the technical and financial feasibility of climate technologies in their context. To find out more about resource efficiency audits please visit the Technical Support page.
FINTECC supports the Ukrainian government with institutional, policy and regulatory policy support assisting in the design of an effective policy framework for resource efficiency technology transfer. In particular, this project supports the State Agency of Energy Efficiency to transpose the Ecodesign Directive (2009/125/EC) removing high-energy consuming products from the market through minimum energy performance standards.
The activities and results of FINTECC policy support in Ukraine are as follows:
- A technical regulation on the establishment of a system for setting Ecodesign requirements for energy-related products was approved by the Cabinet of Ministers of Ukraine on 3rd of October 2018.
- Six specific industrial product group regulations. The product groups covered include electric motors, fans, directional lighting, pumps, lamps and circulators. The regulations are currently at the final stages of adoption (approval by Cabinet of Ministers of Ukraine).
- Foundations for incorporation of energy efficiency criteria for above-mentioned products into the ProZorro public e-procurement platform. Only for these 6 products, €130m of annual savings are possible (mostly from more efficient directional lighting). This novel approach of integrating EE criteria into e-procurement is envisaged to set a precedent for wider consideration of energy performance as a criteria in the UAH 600 billion (approximately EUR 20 billion) worth of goods and services procured by public authorities annually.
The FINTECC in Ukraine is supported by the Global Environment Facility (GEF) and the EU.