EIB and UNDP forge new partnership to accelerate Ukraine’s green energy transition
The strategic collaboration, which was unveiled during the Ukraine Recovery Conference in Rome, aligns with Ukraine’s national priorities and its aspirations for EU accession, and directly supports the strategic vision of the government and national leadership.This important new agreement will see the EIB, UNDP and GIZ work closely with national partners to finance and implement renewable energy projects across Ukrainian municipalities through the
Renewable Energy Solutions (RES) Programme, focusing on critical public infrastructure. The RES programme is designed to integrate renewable energy components into energy-efficient public buildings across Ukraine, including solar energy systems, biomass energy solutions, geothermal heat pumps, and battery storage. The project is supported by a EUR 20 million contribution from the German government, represented by the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), to the International Climate Initiative (IKI) Fund for Investment Grant and Technical Assistance, deployed in synergy with existing and prospective EIB municipal Framework Loans.The new agreement between the EIB,UNDP and GIZ comes at a crucial time, as Ukraine faces immense challenges to its energy security following extensive damage to its civil and energy infrastructure. Ukraine’s energy sector has sustained an estimated U.S. $20.51 billion in direct war damage, according to the
Fourth Rapid Damage and Needs Assessment by the World Bank Group, Government of Ukraine, European Commission, and United Nations. With more than half of the country’s generation capacity destroyed by the ongoing full-scale war, the urgency for robust, decentralised, and renewable energy solutions is paramount. This destruction has led to prolonged power outages and significantly impacted essential civil infrastructure, including education and healthcare facilities, highlighting the critical need for resilient and sustainable energy access, especially in war-affected regions.To address this challenge, the new partnership will leverage the EIB’s financial expertise alongside the on-the-ground implementation capabilities of UNDP and GIZ to support municipalities in strengthening their energy independence. This will be achieved through a comprehensive range of decentralised renewable energy technologies, including photovoltaic (PV) systems, solar thermal systems, biomass heating, geothermal heat pumps, and air-to-water heat pumps. These efforts are designed to enhance energy efficiency and resilience for public infrastructure, ensuring operational continuity even during power disruptions, and contributing to Ukraine’s long-term green sustainable recovery. Both GIZ and UNDP will act as partners of choice for Ukraine's Ministry for the Development of Communities and Territories, ensuring adherence to sound financial management, transparency, and non-discrimination principlesCommenting on the new partnership,
Teresa Czerwińska, EIB Vice-President, stated: “The EIB is steadfast in its commitment to supporting Ukraine’s recovery and its green transition. This partnership with UNDP and GIZ is a demonstration of our shared vision for a resilient, sustainable, and energy-independent Ukraine. By investing in renewable energy solutions for public infrastructure, we’re not only addressing immediate energy needs but also laying the groundwork for a cleaner, more secure energy future for Ukrainian communities. This is a crucial step towards rebuilding better and greener.”
Ivana Zivkovic, UNDP Regional Director, added: “UNDP is proud to partner with the European Investment Bank on this critical initiative. The war has devastated Ukraine’s infrastructure, making the deployment of renewable energy solutions more urgent than ever. Our collaboration will provide essential technical assistance and procurement support to municipalities, empowering them to adopt clean, efficient energy systems. This partnership will directly contribute to strengthening Ukraine’s energy security, promoting climate resilience, and fostering a transparent and sustainable recovery for all Ukrainians.”
Dr. Eva Kracht, Director General for International and European Policy at the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety, said: “While Ukraine continues to defend itself against Russia’s war of aggression and the ongoing attacks on its energy infrastructure, I am proud that we can offer meaningful support within our International Climate Initiative (IKI) in this partnership with EIB, UNDP and GIZ. This marks an important step toward building a more energy-resilient public infrastructure – one that is less dependent on the grid and better prepared to withstand disruptions. Ensuring stable, clean, and renewable energy for hospitals, schools, kindergartens, and public administration is not only crucial for day-to-day operations, but also vital for the long-term security and sustainability of communities across Ukraine.”
GIZ Managing Director Ingrid-Gabriela Hoven added: “This week, we’re taking another crucial step towards the recovery of Ukraine. We’re very proud of the achievement of setting up a new, scalable model of cooperation with the IKI RES project in Ukraine. Our partnership demonstrates that when technical and financial work go hand in hand, crucial support, including (private) finance can be mobilized for municipalities. This complementarity could be a gamechanger for Ukraine’s green recovery.”The new collaboration will focus on providing comprehensive support to Ukrainian municipalities, including capacity building for local governance, advisory support for sub-project preparation, efficient procurement processes, and robust monitoring and oversight of the implementation of the RES programme. The initiative also aims to strengthen financial management and facilitate technical support for net billing implementation, aligning with Ukraine’s national priorities and its aspirations for EU accession.
Media enquiries:Yuliia Samus, UNDP Ukraine Head of Communications and Advocacy. Email:
yuliia.samus@undp.org