On April 11, 2023, the Verkhovna Rada of Ukraine approved draft law No. 8433, which provides for the creation of the State Fund for Decarbonisation and Energy Efficiency Transformation.

The draft law, developed with the participation of Ministry for the Restoration of Ukraine and the State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE), was supported by 299 People’s Deputies of Ukraine.

The fund was created according to the European principle – “the polluter pays”, which, in accordance with the EU Regulation on energy management and climate action, provides for the targeting of environmental taxes on energy efficiency and decarbonization and is applied in 21 EU countries.

As the Vice-Prime Minister of the Ministry for Communities, Territories and Infrastructure Development Oleksandr Kubrakov emphasized, the creation of the appropriate special fund will positively affect the implementation of the National Action Plan on Energy Efficiency, including the implementation of reconstruction projects, which are impossible without taking into account the principles of energy efficiency.

It is important that the newly created fund will become an effective mechanism for the implementation of the SAEE, as the main energy manager of the country, cross-sectoral policy of energy efficiency and decarbonization at the level of the country, community, and household.

“By creating this fund, Ukraine has taken another significant step closer to EU integration and post-war reconstruction. This decision will contribute to the achievement of the common goal with the EU – energy independence and carbon-free development”, – noted the Head of the SAEE, Anna Zamazeeva.

Funds that will be accumulated to the State Fund for decarbonization and energy-efficient transformation will be directed exclusively to the financing of energy efficiency programs and measures, namely:

• state target programs in the field of energy efficiency, use of renewable energy sources and alternative fuels, decarbonization;
• compensations, reduction in the price of loans and leasing obligations involved by individuals and legal entities for energy efficiency measures, energy service, “green” projects, reduction of СО₂ emissions;
• fulfillment of debt obligations for borrowings received by the state for the implementation of investment projects in the field of energy efficiency, renewable energy, and decarbonization.

“The creation of the State Fund for decarbonization and energy-efficient transformation is the result of the painstaking work of many specialists and the first important step on the way to revitalizing the work of the State Agency on Energy Efficiency and Energy Saving as the main implementer of all state policies in the field of energy efficiency,” stressed Anna Zamazeeva.

“I sincerely thank everyone who supported our idea of creating a fund. Finally, Ukraine will have a permanent source of funds to finance all activities that will allow the population, businesses, and local authorities to implement energy-efficient measures and move towards energy independence. Our country will be able to direct the saved funds to its reconstruction, development, improvement of social welfare (pensions, social benefits, etc.), and companies to increase their competitiveness,” commented Anna Zamazeeva.