02.04.2025 | News
An event hosted by Nefco brought together representatives from Ukrainian communities, Nordic and international donors, and other stakeholders. It showcased both completed and ongoing reconstruction projects, shared lessons learned and explored solutions for rebuilding Ukraine in an energy-efficient and environmentally responsible manner.
- Nefco, alongside donors and partners, is implementing urgent recovery initiatives in Ukraine, helping the country build back greener and better. Six new projects have been signed, with a total value of EUR 30 million. Over 30 recovery projects have been completed since the full-scale invasion began, with more than 60 ongoing
- Together with its Nordic owners, the Eastern Europe Energy Efficiency and Environment Partnership (E5P) and the EU, Nefco is enhancing Ukraine’s energy independence and supporting its transition to green.
- Ongoing initiatives are strengthening collaboration between the Nordic countries, the EU, and Ukrainian communities, helping to build resilience in Ukrainian civil society.
Through Nefco, the Nordic countries are supporting Ukraine in repairing critical infrastructure, providing sustainable housing, and building educational facilities. Several grant agreements have been signed to facilitate these efforts.
The following new projects to be managed by Nefco were agreed:
The Eastern Europe Energy Efficiency and Environment Partnership (E5P) has agreed to finance a biofuel boiler house and heat accumulator in the Rakivka district of Kremenchuk, a city in the Poltava region. This is to enhance the reliability of heating and hot water supply after the city’s main Combined Heat and Power facility was destroyed by a Russian missile attack. In addition, Sweden has agreed to provide a bilateral grant to finance installation of 120 individual heating substations for the same project in Kremenchuk.
The cities of Khmelnytskyi, Lubny, and Lutsk have all committed to upgrading wastewater infrastructure and installing solar power panels to produce electricity, with financial support from Denmark, through Danida Sustainable Infrastructure Finance (DSIF). The projects in the three cities will each receive funding through a combination of DSIF grants and city co-financing.
In Lviv, DSIF is supporting the rehabilitation of the wastewater treatment plant to support the ongoing construction of a biogas production facility and the planned rehabilitation of the wastewater treatment plant. The project will provide local electricity and heat generation and improve quality of the treated effluent returned to the Poltva River.
The city of Horishni Plavni and Nefco have likewise signed an agreement to reconstruct the main municipal wastewater pumping station and install solar power panels, to be financed by a grant from the Norwegian Agency for Development Cooperation (Norad) and co-financing from the city. The project aims to enhance the reliability of wastewater infrastructure by replacing a deteriorated pumping station and integrating solar energy to reduce electricity costs. The signing ceremony took place at an event hosted by Nefco in Helsinki, which brought together representatives from Ukrainian communities, Nordic and international donors, and other stakeholders. The event showcased both completed and ongoing projects, shared lessons learned and explored solutions for rebuilding Ukraine in an energy-efficient and environmentally responsible manner.
Sari Multala, Finland’s Minister of Climate and the Environment, emphasized in her speech the importance of environmental security and energy-efficient educational facilities in Ukraine.
“Finland is contributing to Nefco’s Green Recovery Programme for Ukraine to promote the deployment of energy-efficient solutions and the reduction of the use of fossil fuels. I am pleased to note that Finnish funding through Nefco has been directed to the reconstruction of an energy efficient school in Mykulychi. This project is a chance for Ukraine to embrace EU standards on energy efficiency and to take concrete steps in building back greener and better.”
Nefco also implements projects for the multi-donor fund Eastern Europe Energy Efficiency and Environment Partnership (E5P) managed by the European Bank for Reconstruction and Development (EBRD).
“The E5P donors, with Sweden and the European Union as the largest contributors to the fund, are proud to work with Nefco on these vital projects in Ukraine. During these challenging times, the focus of the E5P is to help sustain critical municipal services for heat and water supply to the population as well as thermal modernisation of public buildings to save gas and electricity usage. Ultimately, these improvements will pave the way for a greener, more sustainable recovery of Ukraine,” said Ewa Manik, Associate Director, Donor Partnerships at EBRD.
The event featured first-hand accounts from Ukrainian municipalities leading reconstruction efforts under extraordinary circumstances. Discussions focused on the challenges of rebuilding critical infrastructure during wartime, the role of the Nordic countries in accelerating Ukraine’s green recovery, and the financial mechanisms required to sustain these efforts.
“Thanks to the financial support of Denmark and Sweden, we are implementing projects to reduce water consumption. A recently completed project focused on reconstructing municipal water supply and disposal systems, replacing a large number of pumps. The new project will support the upgrade of wastewater pumping stations, benefiting 44,000 citizens and IDPs,” noted Oleksandr Hrytsaienko, Mayor of Lubny.
“Khmelnytskyi has turned into a major hub, receiving and hosting internally displaced persons (IDPs). However, we have rarely called them IDPs because, for us, they are first and foremost our fellow compatriots, fellow Ukrainians. They are Ukrainians wherever they go. I am very grateful to those who remain in Ukraine—people are a huge resource, and you need people to power the economy,” stated Vasyl Novachok, Deputy Mayor of Khmelnytski.
As the Nordic Green Bank, Nefco focuses on enabling a more sustainable and resilient future.
“Amidst the ongoing war, Nefco continues to deliver tangible results thanks to its 20-year presence in Ukraine, extensive municipal network, and expertise in implementing energy efficiency and renewable energy projects aligned with EU standards and Nordic know-how. These initiatives play a pivotal role in supporting Ukraine’s long-term recovery and lay the foundation for a more sustainable and resilient country,” highlighted Trond Moe,Managing Director of Nefco.
For further information, please contact:
Ulf Bojö, Vice President, Green Transition Eastern Europe, Nefco
ulf.bojo@nefco.int, +358 10 6180 637
Josefin Hoviniemi, Vice President Communications, Nefco
josefin.hoviniemi@nefco.int, +358 50 464 6995
Lia Oker-Blom, Senior Communications Officer, Nefco
lia.oker-blom@nefco.int, +358 10 6180 671
About E5P
The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a multi-donor and multi-International Financial Institution (IFI) support fund created thanks to an initiative of the Swedish Presidency of the European Union in 2009. The E5P fund for Ukraine totals EUR 288 million, representing pledges made by Denmark, Estonia, Finland, Germany, Iceland, Ireland, Latvia, Lithuania, Norway, Poland, Slovakia, Switzerland, Sweden and the United States. Ukraine is also a donor to E5P with EUR 20 million. The E5P provides investment grants alongside IFI loans to make the municipal infrastructure investments more affordable while also boosting a beneficial impact on the environment and combating climate change. As of today, there are 30 investment projects supported by E5P across Ukraine with a total investment volume of over EUR 1 billion. Read more at e5p.eu
