The webinar started with the general state of development of financing in local banks of Ukraine. Maria Kolganova, Executive Director of the Independent Association of Banks of Ukraine, noted that “banks are very interested in green financing, but there is a lack of expertise, we need to understand how effective green financing is for them. “
EU experience is important in the development of green finance in Ukraine. During the webinar, Ted Cronmiller, an expert of Smarter Finance for Families, reviewed EU Regulation 2020/852 Taxonomy (EUT) on promoting sustainable financing. The EUT is an important financial instrument that promotes sustainable investment and the implementation of the European Green Course. It provides appropriate sustainability criteria for companies, investors and policies, creating some security for investors, protecting them from unnecessary costs, helping to mitigate market risks and redirecting investments to where they are most needed.
“If we all want investment, then our investment plan must meet the criteria of sustainable development,” said Oleksiy Parkhomchuk, Investment Director, Representative in Ukraine, Investment Fund For Developing Countries (IFU). An important role in green finance belongs to the International Financial Institutions, in this regard, the speaker shared the experience of the IFU and said that “our investments should clearly create a green, fair and inclusive economy.”
Serhiy Porovsky, Chief Expert on Financing and Energy Efficiency Policy, UNIDO and Oleksiy Savin, Director of the Department of Environmental Reengineering and Implementation of Resource Saving Projects, JSB Ukrgasbank shared their experience in implementing a joint project, a financial instrument – the Energy Efficiency Loan Guarantee Fund, launched by the UN agency in cooperation with a selected financial partner in Ukraine. Mainly aimed at assisting in gaining access to capital of industrial enterprises for implementation and certification of the energy management system (according to ISO 50001) and implementation of measures to optimize energy consumption.
Director of Economics and Finance D.Solutions (YASNO brand) Tetyana Gryaznova – thoroughly told how banks can grow “green” portfolios by cooperating with the ESCO mechanism. “Cooperation in the energy service provides benefits to all its participants. First of all, both banks and the ESCO company receive cash flow and a large return on investment. The absence of technical risks borne by ESCO-company is more favorable for the bank,” the speaker said.
Monica Ardeleanu, Ph.D., Executive Director and Research Director, Romania Green Building Council and Bogdana Diaconu, Senior Specialist, Corporate Affairs, Communication and Public Relations Directorate, Raiffeisen Bank in Romania -shared their experience of implementing Green Homes & Green Mortgage in Romania. Ms. Bogdana said that the monthly payments for a green mortgage are much lower, as the monthly energy costs are lower, plus the bank provides a mortgage discount if the building is certified as a permanent building with a low level of energy consumption.
The webinar was completed by Rostyslav Maraiki, PFAN Regional Coordinator Eastern Europe & Central Asia, “How can we be valuable to banks? We are currently performing quality expertise and project preparation to ensure that banks or IFIs understand all available risks, financial and environmental indicators. I would like to emphasize that our expertise is free of charge for businesses that plan to submit a project for financing and, accordingly, for banks, ” said Mr. Rostyslav.
Summing up, Oleksandra Gumeniuk outlined that the European-Ukrainian Energy Agency, as a business association uniting the largest foreign investors in the renewable energy sectors, which have invested a total of more than three billion euros in this industry, encourages companies working in the energy efficiency sector, companies that implement energy efficiency measures, and financial institutions that develop green finance to cooperate and become members. EUEA is expanding its activities in the field of energy efficiency and green finance.
“It is extremely important for Ukraine to develop green financing, because there is a huge potential to accumulate about $ 70 billion for sustainable projects by 2030. Green financial instruments are needed for this,” said Oleksandra Gumeniuk, EUEA Director.
Webinar recording: https://www.facebook.com/EUEA.UA/videos/183669363936728