Ukraine’s State Agency for Energy Efficiency and two national banks are launching a program to lower loan costs for energy projects.

The State Agency for Energy Efficiency, along with Ukrgasbank and Sense Bank, are starting a new initiative to reduce the cost of loans for the implementation of energy-efficient solutions, modernizing energy systems, and developing alternative energy sources. The goal of the program is to encourage the adoption of energy-efficient measures and decrease CO2 emissions across various economic sectors.

The program operates through voluntary energy efficiency agreements, a partnership between the Ukrainian government and businesses, in which companies voluntarily commit to boosting their energy efficiency and cutting emissions. In return, the government offers support through lowered loan costs, by providing access to financing, and offering consulting assistance. Among the ways that these loans can be utilized is to upgrade production, replace outdated equipment, and install solid fuel boilers, solar panels, and energy management systems.

The government covers 12% of the interest rate, while projects using Ukrainian equipment receive a 14% rate. The maximum loan term is 10 years, with a maximum loan amount of ₴60M ($1.4M) for businesses and ₴90M ($2.15M) for utility companies.