The Verkhovna Rada of Ukraine approved the creation of the State Fund for Decarbonization and Energy-Efficient Transformation

Created date

11 04 2023

On April 11, 2023, the Verkhovna Rada of Ukraine approved draft law №8433, which provides for the creation of the State Fund for Decarbonization and Energy-Efficient Transformation in Ukraine.

The draft law, developed with the participation of the Ministry of Reconstruction of Ukraine and State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE), was supported by 299 people's deputies of Ukraine.

The fund was created according to the European principle - "the polluter pays", which, in accordance with the EU Regulation on the Governance of the Energy Union and Climate Action, will direct revenues from the tax on CO2 emissions to energy efficiency and decarbonization programs. Such mechanism is applied in 21 EU countries.

As the Deputy Prime Minister for Restoration of Ukraine - Minister for Communities, Territories and Infrastructure Development of Ukraine Oleksandr Kubrakov emphasized, the creation of the appropriate special fund will positively affect the implementation of the National Energy Efficiency Action Plan until 2030, including the implementation of reconstruction projects, which are impossible without taking into account the principles of energy efficiency.

It is important that the newly created fund will become an effective mechanism for the SAEE as the main energy manager of the country that is implementing cross-sectoral policy of energy efficiency and decarbonization at the level of the country, community and households.

"By creating this fund, Ukraine has taken another significant step closer to EU integration and post-war reconstruction. This decision will contribute to the achievement of the common goal with the EU - energy independence and carbon-free development", - said the Head of the State Energy Efficiency Agency of Ukraine (SAEE) Anna Zamazeeva.

Funds that will be accumulated to the State Fund for Decarbonization and Energy-Efficient Transformation will be directed exclusively to the financing of energy efficiency programs and measures, namely:

• state target programs in energy efficiency, renewable energy sources and alternative fuels, decarbonization;

• compensations, reduction the price of loans and leasing obligations attracted by individuals and enterprises for energy efficiency measures, energy performance contracting (ESCO), "green" projects, reduction of CO2 emissions;

• fulfillment of debt obligations for borrowings received by the state for the implementation of investment projects in energy efficiency, renewable energy, decarbonization.

"The creation of the State Fund for Decarbonization and Energy-Efficient Transformation is the result of the active work of many specialists and the first important step on the way to stimulating the State Energy Efficiency Agency as the main implementer of all state policies in the field of energy efficiency," stressed Anna Zamazeeva.

"I sincerely thank everyone who supported our idea of creating a fund. Finally, Ukraine will have a permanent source of funds to finance all activities that will allow the population, businesses and local authorities to implement energy-efficient measures and move towards energy independence. Our country will be able to direct the saved funds to its reconstruction, development, improvement of social welfare and to help companies to increase their competitiveness," commented Anna Zamazeeva.