Financing of the Decarbonization Fund will almost double next year

Financing of the Decarbonization Fund will almost double next year
Hanna Velyka

In 3 months of active work, the institution provided loans for the implementation of more than 30 projects

In 2025, JSC Decarbonization Fund will receive UAH 1.75 billion in revenues from the carbon tax.

This was stated by Maria Malaya, First Deputy Head of the State Agency on Energy Efficiency and Energy Saving, in a commentary to Ukrinform.

She said that this amount has already been included in the state budget for 2025. The official also emphasized that the Decarbonization Fund has sustainable funding that does not depend on redistributions from the state treasury.

Plans of the Decarbonization Fund for 2025

According to Maria Malaya, the teams of the State Agency on Energy Efficiency and the Decarbonization Fund have high expectations for the financial leasing program. Under this program, communities or businesses will immediately receive equipment for project implementation.

There are already proposals from Western partners to provide energy-efficient equipment on preferential terms, says the Deputy Head of the State Agency on Energy Efficiency.

The Decarbonization Fund plans to launch a grant program for the public sector in 2025: both public authorities and their subordinate institutions, such as libraries and universities.

Results of the Foundation's work in 2024

Maria Malaya said that since the beginning of its work, the Decarbonization Fund has provided funding for more than 30 energy efficiency projects for communities and businesses. Active lending to selected projects began in October.

According to the official, as of December 9, the Decarbonization Fund has reviewed more than 70 projects. She says that most of the funded projects are those of local governments. As an example, Maria Malaya mentioned the thermal modernization of a network of kindergartens in Odesa, improving the energy efficiency of street lighting, water utilities, and hospitals.

The deputy head of the State Agency on Energy Efficiency and Energy Saving said that the Decarbonization Fund already has about 10 business projects in its portfolio. Their implementation will help to improve the energy efficiency of both large industrial facilities and small industries.

EcoPolitic has prepared a material for its readers with answers to the most common questions about the Decarbonization Fund: how it works, where it receives money, to whom it gives loans and for what purpose. It also contains an interesting infographic on the Fund's resources and expenditures.

On December 2, it became known that JSC “Decarbonization Fund of Ukraine” will enter the factoring and leasing market, as the National Bank of Ukraine has expanded its license.

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