Stockhom (NordSIP) – A €10 million funding program to support the development of long-term sustainable district heating systems in Ukraine is being launched by Sweden alongside NEFCO, the Nordic Environment Finance Corporation, which finances projects to increase green investments globally.
The programme, presented at the Nordic Green to Scale seminar in Kyiv last week, will focus on creating district heating systems large enough to enable the effective use of renewable and waste heat sources with low environmental and climate impact, as well as improving district heating services to enable customers to control heat consumption based on need. This will have the additional benefit of meeting existing EU requirements.
A major proportion of district heating systems in Ukraine are outdated, with 46% of households needing state subsidies to pay for rising heating costs.
“I am very glad to announce the continuation of Swedish support to district heating in Ukraine,” commented Sweden’s ambassador to Ukraine Martin Hagström. “ This is an area where we have a lot to share, having gone through decades of modernization of our district heating systems.”
“I have also visited several of the ongoing projects, am I am very impressed with the results that NEFCO and our Ukrainian partners have achieved so far,” he added.
Of the €10 million, €6 million will be invested directly into a fund and €4 million will be allocated to technical assistance during the implementation of the program, helping municipalities to prepare.
Sweden is slated to allocate €175 million to support reforms in Ukraine from 2014 to 2020, making it Ukraine’s seventh largest donor.