The Decarbonization Fund will change the terms of loans: what to expect

The Decarbonization Fund will change the terms of loans: what to expect shutterstock
Hanna Velyka

Among the clients now are many energy service companies and other private legal entities

By the end of the year, changes are planned to the Procedure for the use of funds from the State Fund for Decarbonization and Energy Efficient Transformation, which will be positive for potential recipients of this state support and create more favorable conditions for them. This was reported by

Olesia Mishchenko, Chairman of the Board of the Ukrainian Decarbonization Fund (UDF), in an exclusive interview with EcoPolitic, which will soon appear on our website.

She did not disclose the details, but said that innovations are planned:

  • expand the number of financial instruments for energy-efficient measures;
  • increase funding amounts;
  • extend the term of deferment of payment for the body of the loan.

In the first quarter of 2025, FSU also plans to launch new products that should be of interest to applicants. They will be related to leasing and factoring, for which the institution received a license at the beginning of December.

Mishchenko also spoke about the significant increase in the number of projects that have already received funding. Yes, if as of November 20, there were 7 of them, and the amount of loans issued amounted to UAH 21 million, then as of mid-December, FSU financed 16 projects for UAH 178.9 million, is at work 17 projects worth UAH 268 million.The projects that received loans collectively provide savings of more than 10.8 thousand. MW*h of electricity, as well as a reduction of CO2 emissions by 17.5%, which amounts to 7.3 thousand tons

Earlier, Ecopolitic previously prepared a large one material about the "Decarbonization Fund of Ukraine". We talked about his purpose, goals, how much money he has already accumulated, who the institution lends to and under what conditions. Later we talked about what next year funding of PDU will increase almost twice

Related
What is the path to real, rather than "paper," climate neutrality, and is Ukraine ready for it? Part 2
What is the path to real, rather than "paper," climate neutrality, and is Ukraine ready for it? Part 2

First and foremost, the issue of financing must be resolved, because without it, all ambitious plans will remain nothing more than good intentions

The FEU calls on the Ministry of Economy to finalize the emissions trading system model
The FEU calls on the Ministry of Economy to finalize the emissions trading system model

Due to the war, businesses need a longer transition period and softer conditions than EU members

Financing emission reduction projects: UNDP accepts applications from Ukrainian businesses
Financing emission reduction projects: UNDP accepts applications from Ukrainian businesses

Companies may participate in ITMO programs in the future and receive funds for eco-modernization

UAH 1.5 billion and 72 funded projects: the Decarbonization Fund reported on the results of its work
UAH 1.5 billion and 72 funded projects: the Decarbonization Fund reported on the results of its work

Next year, the institution plans to reach a significant level of profitability and pay dividends to the state