The investment potential of the energy efficiency sector in Ukraine exceeds USD 27 bln

This was emphasised by the participants of the panel discussion “Needs of business and the state in terms of industrial, energy efficient equipment and materials” at the Investors Annual Meeting, an investment forum organised by UkraineInvest in partnership with the Ukrainian CCI and with the support of OKKO and Onur Group.

Participants were presented with an analytical study by UNDP Ukraine and UkraineInvest on innovative and impact investing mechanisms and investment opportunities for Ukraine’s energy efficiency transformation.

Key messages from the speakers

“As of February 2023, the total cost of Ukraine’s post-war recovery is estimated at USD 411 bln, of which USD 92 bln is needed for the transport system, USD 69 bln for housing, USD 47 bln for the energy sector, USD 42 bln for social protection, USD 38 bln for mine safety management and USD 30 bln for agriculture. Increased funding for MSMEs can help accelerate the post-war reconstruction of Ukraine and its economy. Improving access to finance can help Ukrainian MSMEs recover, expand and enter new export markets such as the European Union and others. Private sector support for the Sustainable Development Goals contributes to local economic recovery with the support of development finance institutions that encourage riskier investments and greater private sector involvement,” – Maria Gutsman, UNDP Inclusive Development, Recovery and Peacebuilding Programme Manager.

“The Impact Investing Fund aims to support Ukrainian small and medium-sized enterprises that are critical to the country’s recovery, using innovative mechanisms such as buyout shares and revenue-based financing to manage exit risks. Impact investment is emerging as a key force for long-term resilience and sustainable development. Businesses and investors are providing expertise, innovative solutions and capital to drive recovery ” – Maksym Boroda, UNDP Ukraine Project Manager.

“The analytical study by UNDP Ukraine and UkraineInvest on innovative and impact investing mechanisms can become the basis for the development of social impact investment funds, especially in the field of energy efficiency. It was therefore important to hear the views of the Head of the State Agency for Energy Efficiency and Energy Saving of Ukraine on the prospects for investment in this strategic area for Ukraine. Ukraine can attract more than USD 27 bln and the Agency is actively working to create such projects,” – Sergiy Tsivkach, Executive Director of UkraineInvest.

“Investments in decarbonisation and energy efficiency are not just business projects and investments in business development and competitiveness. On a national scale, all these projects together will help to reduce the annual direct losses of more than USD 1 bln in the country due to low energy efficiency, generate domestic revenues and economic growth, create new jobs, attract innovation and increase energy security for communities and the economy. To encourage investment, the National Energy Efficiency and Conservation Agency is creating incentive instruments. These are the Decarbonisation Fund and the Ukrainian National Decarbonisation Platform – UANDP” – Hanna Zamazeyeva, Head of the State Agency for Energy Efficiency and Energy Saving of Ukraine.

The purpose of the event was to improve the dialogue between business and government, to organise analytical discussions on the implementation of industrial investment projects, to present a report on the prospects and mechanisms for the creation of new investment funds, and to award investors who have started and are implementing projects after 24 February 2022.

Participants discussed the needs of business and the state in terms of industrial, energy-efficient equipment and materials, economic transformation, and factors of Ukraine’s investment attractiveness.

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