In the decade following the collapse of the Soviet Union, Ukraine’s economy contracted by over 50%, and poverty rates increased by nearly a third. The downturn precipitated a corresponding contraction of greenhouse gas (GHG) emissions. Economic growth rebounded to around 7.5% from 2000–2007, but the 2008 global recession devastated the Ukrainian financial sector, constricting access to capital for recovery and development objectives. Though GHG emissions have yet to recover to their peak in the 1990’s, Ukraine is one of the largest GHG emitters in the world at 400 MtCO2e per year. It is also one of the least efficient users of energy, with economic output per unit of energy consumed three times above the EU average. Moreover, 62% of Ukraine’s primary energy supply is imported, undermining the country’s energy security. As global prices have risen, the Ukrainian government has placed new emphasis on improving the efficiency of its energy distribution and use, as well as diversifying its energy supply.
...the estimated amount of CO2 equivalent emissions expected to be avoided per year due to proposed CTF investments
To advance its goal of low carbon development, the government of Ukraine will use US$350 million from the Clean Technology Fund (CTF) to finance and catalyze greater investment in new renewable energy capacity, waste heat generation, transmission grid upgrades, and energy efficiency. Ukraine’s CTF investment plan was drafted under the leadership of the Ukrainian government, in consultation with the European Bank for Reconstruction and Development (EBRD), members of the World Bank Group (IBRD, IFC), and key Ukrainian stakeholders. CTF financing is expected to mobilize around US$2 billion in additional financing for projects intended to accelerate Ukraine’s low carbon development priorities.