The Decarbonisation Fund has received $1.5 million from UNIDO to support industry

The Decarbonisation Fund has received $1.5 million from UNIDO to support industry fdu.com.ua
Maria Semenova

Funding will be available for energy efficiency projects

Ukraine has received funding as part of the UNIDO-GEF UKR IEE project from the United Nations Industrial Development Organisation. The financial instrument will be utilised within the framework of the Industrial Energy Efficiency Loan Guarantee Fund.

This was announced by the Ukraine Decarbonisation Fund.

A letter of intent was signed by Hanna Zamazeyeva, Head of the State Agency for Energy Efficiency, and Yuko Yasunaga, Deputy Director-General of UNIDO, at the Ukraine Recovery Conference (URC 2026).

The State Agency for Energy Efficiency is the National Beneficiary of the UNIDO-GEF UKR IEE project. It has supported the activities of the Credit Guarantee Fund, as well as the project’s Sustainability Strategy.

Hanna Zamazeyeva assured that the funds from the financial instrument would be used to improve industrial energy efficiency. In particular, this will help attract funding for various initiatives by Ukrainian businesses – reducing energy consumption, implementing energy-efficient projects and modernising production.

“For us, this is much more than just a transfer of financial resources. It is the trust of international partners in the instruments of JSC ‘Ukraine Decarbonization Fund’ and confirmation that it is becoming one of the key elements supporting the modernization of Ukrainian industry,” the head of the State Agency for Energy Efficiency noted.

The purpose, objectives, and specific features of the Ukraine Decarbonization Fund’s financing process were explained by EcoPolitica in a separate article. The main sources of the fund’s income are the environmental tax on carbon dioxide emissions, as well as support from partner countries and international organizations.

To receive a loan from the Fund, a project must meet two key objectives – energy efficiency and reduction of greenhouse gas emissions.

During May, Ukrainian businesses received UAH 207.4 million in government support from the Ukraine Decarbonization Fund. In total, five enterprises were supported, involving projects for the construction of solar power plants and the installation of a start-up complex for a cogeneration unit.

Additionally, with the funds of the Decarbonization Fund, 14 solar power plants were installed for state institutions.

Previously, the Fund was mentioned in anti-corruption media publications. There were reports of a non-competitive award of a tender to a single company – without bids or competitors. In this manner, UAH 192 million was allocated for the procurement of 40,000 natural gas consumption data transmission devices.

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