Ukrainian industrial enterprises can obtain loans at a lower interest rate and without collateral for the implementation of an energy management system (EnMS). EnMS will effectively manage energy consumption and assess the need for further investments in energy efficiency. Thanks to such a system, a company can save up to 25% on energy costs and reduce CO2 emissions into the atmosphere.

Within the framework of the conference “Loan Guarantee Fund for Industrial Energy Efficiency: How Does It Work?” The United Nations Industrial Development Organization (UNIDO) together with UKRGAZBANK JSB with the help of the Global Environmental Fund (GEF) presented the mechanism of work of the Loan Guarantee Fund for Industrial Energy Efficiency in Ukraine. Which is the first financial instrument in Ukraine that uses guarantees to improve financing conditions for Industrial Energy Efficiency (IEE).

The Loan Guarantee Fund, as a financial mechanism, was created in Ukraine as part of the objectives of the UNIDO/GEF UKR IEE Technical Assistance Project: “Introduction of Energy Management System Standard in Ukrainian Industry” implementation. The size of the Energy Efficiency Loan Guarantee Fund is USD 1,500,000.

According to Serhiy Porovskyy, Energy Efficiency Policy and Finance Expert of the UNIDO/GEF UKR IEE Project, the energy management system is an effective tool for allowing companies to understand the potential and feasibility of further investments in energy efficiency. “Investing in industrial energy efficiency measures is a profitable investment. And in case of the introduction of an energy management system, which we advise to do in the first place, it is very profitable! However, we are working hard now to ensure that the benefits of financing industrial energy efficiency are understood both at the level of industrial enterprises and at the level of financial and state institutions. This is extremely necessary to reduce the energy intensity of the Ukrainian economy and improve its development,” said Serhiy Porovskyy.

Globally, the UNIDO Industrial Energy Efficiency Program operates in 27 countries around the world through the provision of technical assistance and the development of expertise in the implementation of energy efficiency and new energy saving technologies, – said Marco Matteini, UNIDO Program Manager, Department of Energy. In total, UNIDO has saved more than USD 400 million through this program for over 500 businesses around the world. Marco Matteini also noted that in 2020 global investments in industrial energy efficiency increased by 35 billion euros compared to 2017. “Since then, new models have been introduced that have been tuned to accommodate new investments and resources.”

“The uniqueness of this tool lies in the fact that it is focused on the implementation of enterprises’ projects that are aimed at creating or modernizing energy efficient management systems, optimizing energy systems and the production process, introducing energy efficiency measures in production itself,” said Victor Duma, Deputy Head of the International Cooperation Department of UKRGASBANK. According to him, thanks to the Loan Guarantee Fund the enterprise can receive a loan of $ 150 thousand without collateral and at a lower market interest rate for the implementation of the Energy Management System (EnMS) in accordance with the state standard DSTU ISO 50001. Thanks to the implementation of the energy management system, enterprises can save up to 25% on energy costs. This, accordingly, improves the competitiveness of the enterprise, reduces the cost of production by saving energy resources, and as a result, helps to reduce CO2 emissions (decarbonization).

Olga Buslavets, First Deputy Minister of Energy of Ukraine, noted the importance of improving the energy efficiency of the Ukrainian industry. She announced the creation of the Green Energy Agency – a cross-sectoral body that will ensure sustainable development of the country, support and implement the green transition. “There is also an initiative to create a Decarbonization Fund – a tool for the targeted use of funds received from the payment of the CO2 tax for energy efficiency and decarbonization projects,” Olga Buslavets said.

According to Acting Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine, Kostiantyn Gura, the economy should be built around energy efficiency, because this approach predetermines its development. He also announced the continuation of the Warm Credit program in 2021 and noted that the Energy Efficiency Program 2022-2026 with a funding volume of UAH 10 billion is expanding its action to industry, budgetary sector and bioenergy projects and is not only intended to support energy efficiency initiatives in the housing sector and private households, which was the main focus before.

According to Oleksiy Riabchin, Advisor to the Vice Prime Minister of Ukraine on European and Euro-Atlantic Integration, decarbonization is becoming an important element of climate diplomacy and politics of the world’s leading states. Thus, the US, EU, Japan and even China have already announced that they plan to become climate neutral. Since Ukraine is striving for integration into the EU, into a single market, it will have to adhere to the same policy. The cost of CO2 emissions will rise significantly, and energy efficiency is an attractive way to reduce CO2 emissions, so enterprises should now think about the introduction of “green technologies” and focus on energy efficiency, otherwise, they will become uncompetitive in the market. According to him, companies should take advantage of the available tools today to improve their energy efficiency and sustainability.

The experience of enterprises implementing EnMS and energy efficiency measures demonstrates impressive economic benefits. “The total cost of saved energy resources after the implementation of the energy management system for the period from 2018 to 2020 amounted to about UAH 16.5 million, while only UAH 350 thousand was spent on the system implementation,” – Igor Luchynyn, Energy Efficiency Manager, JSC “Svitlo Shakhtarya” commented on its experience of cooperation with UNIDO. “The real result became possible only when we started systematic work instead of ad hoc, small and large energy efficiency measures.” Maria Voloskovets, Senior expert on standardization, certification and quality of ASTARTA-KYIV, during the conference also noted that 5 enterprises of the holding have already passed the appropriate certification in accordance with ISO 50001 and are now continuing to implement energy efficiency measures. She emphasized that thanks to energy efficient measures in particular the introduction of an energy management system sugar factories have managed to reduce gas consumption by 26%, electricity by 18.7%, and water by 42% over the past 8 years. Dmytro Sukhovii, Deputy Chief Power Engineer of PJSC “Kyiv Cardboard and Paper Mill”, said that only with the EnMS and optimization of operating cycles, the total energy savings (electricity + heat steam) amounted to 3,784,373 kWh with no additional capital costs for the period from 01.07.2019 to 15.11.2020.

“We must remember that the energy management system is being integrated as a functional structure that constantly pushes the employees of the enterprise and its management to continuously improve energy efficiency. But the main advantages are not always only energy savings, since the energy management system for any enterprise has many non-energy benefits”, noted Pavlo Pertko, Certified UNIDO National Trainer on EnMS implementation.

Comments of the participants of the online conference “Loan Guarantee Fund for Industrial Energy Efficiency: How Does It Work?”, as well as the recording of two-panel discussions on the event page at the link.


An innovative financial instrument – the Loan Guarantee Fund (LGF) was created and launched by the United Nations Industrial Development Organization (UNIDO) jointly with UKRGAZBANK JSB, with the help of the Global Environment Facility (GEF) and with the support of national beneficiaries.

The Loan Guarantee Fund (LGF) as a financial mechanism was introduced as part of the implementation of the objectives of the UNIDO/GEF UKR IEE Technical Assistance Project: “Introduction of Energy Management System Standard in Ukrainian Industry” (UKR IEE Project).

UKRGASBANK is the leader in financing the eco-direction in Ukraine and is actively changing the outlook of the Ukrainian society regarding the impact on the environment. It has 35% of “green” loans in the portfolio. 94.9% of the bank’s shares belong to the state. More information about the conditions for granting loans here.

The European-Ukrainian Energy Agency (EUEA) is an independent non-profit organization open to all participants in the energy efficiency and renewable energy market of Ukraine.

Information Partner of the event: Professional Association of Ecologists of Ukraine (PAEU).