Decarbonization Fund: how many and which projects were financed in the first half of this year

Decarbonization Fund: how many and which projects were financed in the first half of this year shutterstock
Hanna Velyka

The total amount of loans granted is about UAH 275 million, which is not even close to the funds allocated for decarbonization of the EU industry

In the first half of 2025, the Joint Stock Company “Decarbonization Fund of Ukraine” issued loans for the implementation of 22 projects totaling UAH 274,374,430.

The institution published these data on its official website regarding the results of its work for January-June of this year.

Number and amount of loans

In the first half of the year, May was the most productive month in terms of the number of projects financed and the amount of funding. A total of 13 projects received almost UAH 160 million. In February and March, the Decarbonization Fund provided one preferential loan each, but in May there were none at all. The Fund did not specify why this month was completely “zero.”

The distribution of the number of projects that received funding is shown in the diagram:

fdu.com.ua

Source: fdu.com.ua.

In terms of amounts, the largest loan was provided in February. Its volume amounted to UAH 32 million. It is difficult to say how the funding was distributed among the 13 projects in April, but on average it was UAH 12.3 million.

In the diagram below, the Decarbonization Fund made a technical error: it should be “thousand UAH” instead of “UAH.”

fdu.com.ua

Source: fdu.com.ua.

Who received preferential loans from the Decarbonization Fund

Recipients can be divided into three groups by project type:

  • renewable energy sources – 14 projects;
  • energy service companies (ESCOs) – 7 projects;
  • energy efficiency in production – 1 project.

fdu.com.uaSource: fdu.com.ua.

If we divide them geographically, projects in seven regions received funding. The largest number were in Dnipropetrovsk and Kyiv: 10 and 7 projects, respectively.

fdu.com.uaSource: fdu.com.ua.

What is the estimated efficiency of the projects that received loans?

The total energy savings from the implementation of 22 projects is approximately 12,234 MWh, with a reduction in CO2 emissions of 5,125 tons. The only thing the Decarbonization Fund did not specify was the time period:

fdu.com.uaSource: fdu.com.ua.

The Decarbonization Fund also provided a summary chart of revenues and financing provided since it began lending in September 2024:

fdu.com.uaSource: fdu.com.ua.

The total amount of preferential loans issued amounted to over UAH 455 million.

And in the EU

If we compare the financing provided by the Ukrainian Decarbonization Fund with the amounts handled by European institutions of the same type, we see that they are completely incomparable.

Judge for yourself: UAH 274,374,430 in loans from the domestic fund is approximately €5.6 million at the current exchange rate. And this is despite the fact that in the EU, €15.1 billion (!!!) in grants and €0.7 billion in preferential loans were provided for the decarbonization of the metallurgical industry over 2.5 years.

And with all this, the Ministry of Environmental Protection and Natural Resources of Ukraine has proposed to take on the same ambitious commitments regarding the Nationally Determined Contribution as European countries. But the ministry has not specified where to get the same amount of money for the modernization of equipment that has been liquidated.

In early May, EcoPolitic analyzed the feasibility of spending on financial leasing services for associations of co-owners of apartment buildings (OSBB) and housing and construction cooperatives (ZhBK), which were planned by the Decarbonization Fund.

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