The Nefco Green Recovery Programme for Ukraine paves the way for a green and sustainable reconstruction of the country. Through various initiatives, the programme is providing financial support and technical assistance to municipalities in Ukraine to address both direct and indirect consequences of the war. These investments aim to provide Ukraine with an EU-aligned pathway and help the country build back greener and better.
Financial support is currently being used for repairs and reconstruction of municipal infrastructure in an environmentally sound way, accommodation of internally displaced persons (IDPs) and capacity building for designing Local Green Recovery Plans.
The programme contributes to a green economy and energy transition in the recovery process, and supports further integration with Europe.
Our Green Recovery Programme for Ukraine
The programme focuses on actions that help municipalities build back greener and better. It provides financial support and technical assistance to Ukrainian municipalities to address both direct and indirect consequences of the war.
Why is green recovery needed?
During Russia’s full-scale invasion, severe damage has been caused to people, infrastructure and the environment in Ukraine. In addition to immediate assistance, Ukraine needs significant reconstruction and financial development support over several years to overcome the destruction caused by the war.
Local governments will need skills development support to be capable of planning environmentally sustainable recovery in a manner that catalyses reduced dependence on fossil fuels and cuts harmful pollution while appropriately harnessing opportunities for renewable energy, energy efficiency and modern, clean technology solutions.
The reconstruction offers Ukraine an opportunity to leapfrog technologically while creating a resilient and carbon-neutral economy. Ukraine has expressed its willingness to reform the country, to focus on a green, circular economy, get rid of fossil fuel dependence and take best practices into use. Investments aim to provide Ukraine with an EU-aligned pathway for sustainable reconstruction and a faster green transition.
WWF Ukraine: Nature is the silent victim
The war has caused tremendous damage to the environment. Measuring and verifying the extent of the damage will be challenging while the war is ongoing. It is, however, clear that both the Ukrainian society and nature are in desperate need of restoration.
What makes the programme green?
The Green Recovery Programme for Ukraine is fully aligned with the 1.5 degree-objective of the Paris Agreement. The recovery actions are geared toward a green transition and transformation of economy and society, supporting cities to be rebuilt based on environmental assessment and impact, using modern solutions.
Activities are subject to Nefco’s rules and policies, including Nefco’s Environmental and Sustainability Policy and Guidelines, Nefco’s Procurement Policy and Procedures and requirements under the EU Pillar Assessment. To catalyse further sustainability impacts, municipalities will be able to receive technical assistance in developing environmental needs assessments and Local Green Recovery Plans.
Best practices and knowledge sharing
Infrastructure projects offer opportunities for companies that provide technology know-how and components. Procurements are done by the municipalities, and Nefco collaborates with municipalities to introduce transparent procurement practices and measures to fight corruption and misconduct.
How is the programme working?
Municipalities are playing a significant role in building Ukraine back greener and better. The Green Recovery for Ukraine programme partners with Ukrainian municipalities to address both direct and indirect consequences of the war.
- Short-term repair and restore needs of critical infrastructure and public service buildings
- Renovating and building utilities and facilities serving internally displaced persons (IDPs)
- Capacity building and Local Green Recovery plans to ensure Ukraine is built back greener and better.
All recovery activities will integrate environmental and sustainability considerations.
The programme was launched in July 2022, project implementations are ongoing and the first projects have already been completed. Currently, some 50 projects are being implemented:
- Critical infrastructure (district heating and water & wastewater) repair in 12 communities in the Kyiv region
- Water system modernisation in six communities
- Energy efficiency in five small municipalities (Andrushivka, Radomyshl, Khmelnytskyi, Slavutych, Tetiyiv)
- Housing for internally displaced persons (IDPs), 20 projects in various cities (Chernivtsi, Dubno, Kovel, Lviv, Makariv, Zhytomyr, Ivano-Frankivsk, Khmelnitskii, Nemishaeve, Novovolynsk, Ternopil, Chortkiv, Kivertsi, Zolochiv, Rivne, Novohrad-Volynskyi)
- Project support for specific infrastructure projects in Krementchuk and Mariupol
- Piloting Local Green Recovery Plans with three cities
Nordic countries actively supporting Ukraine
Various means of humanitarian aid and rebuilding efforts have already been provided by the Nordic countries. Due to Nefco’s expertise and broad experience in financing and working directly with Ukrainian cities and municipalities, financial support is efficiently channelled through Nefco.
Contributors
The grant-based programme may comprise individual initiatives from various contributors. Nefco has for years worked with Nordic, European and multinational institutions to manage funds and implement projects for them in Ukraine. Contributions for existing facilities and initiatives managed by Nefco have been repurposed towards the new programme given the urgent need for recovery. These are supplemented by new initiatives and contributions.
To date, the Nefco Green Recovery for Ukraine programme has mobilised EUR 290 million from various contributors:
The EU, Denmark, Iceland, Finland, Norway and Sweden are the programme’s initial contributors. Further contributions are welcome.
EU financed actions in Ukraine
Together with European Union (EU), through the EU Delegation in Ukraine, Nefco has agreed to manage a range of actions funded by the EU to support Ukraine in reconstruction and help strengthen the resilience of the Ukrainian people.
Nefco in Ukraine
Nefco has strong, Ukraine-specific expertise and a unique network with Ukrainian municipalities, authorities, consultants and contractors. We have an office in Kyiv and a local team. Since more than 15 years, we have financed more than 80 private sector and 230 public sector projects in Ukraine to support the country in its green transition. We have worked across Ukraine with renewable energy and energy efficiency, as well as modernisation of both district heating and municipal water and wastewater treatment facilities.
In the private sector, we have co-financed larger projects together with institutions such as EBRD, FMO, IFU and Swedfund.
In the public sector we have blended our loans with grant funds from the Nordic governments, the EU and the Eastern Europe Energy Efficiency and Environment Partnership (E5P).
Read more about our previous activities in Ukraine.
How Nefco works in Ukraine
In 2009, Nefco and Ukraine signed a framework agreement that provides a legal framework for Nefco’s operations in Ukraine. The framework agreement enables Nefco to provide financing to municipalities and carry out projects in an efficient way. This supports the country in its transition to a green economy and benefits the communities and ordinary people of Ukraine.
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Extensive network with municipalities
During the last decade, Nefco has partnered with over a hundred Ukrainian municipalities and successfully financed and implemented environmentally sound projects in energy efficiency, district heating and other municipal services.
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