The Facility is funded of up to USD 100 million, which will be made available to qualifying Participating Financial Institutions (PFIs) in Ukraine, including new and existing clients, for on-lending to eligible private sector sub-borrowers for sustainable energy investments in the residential sector. 


This Project offers significant environmental opportunities as it will contribute to greenhouse gas reduction. All participating banks are required to comply with the requirements of EBRD’s Performance Requirement 2 on Labor and Working Conditions. All sub-loans under the credit lines will need to comply with the requirements of PR9 for Financial Intermediaries. Sub-borrowers financed under the Facility will be required to comply with national requirements for environment, health and safety and labor (EHSL) standards and eligibility criteria for residential energy efficiency (EE).

The Facility will be supported by a comprehensive technical assistance program to provide implementation support to PFIs and sub-borrowers. €4.5 million funding for the Technical Cooperation program are secured from SIDA-EBRD Ukraine EE and Environment Consultant Cooperation Fund (SWUK) and Eastern European EE and Environmental Partnership (E5P).

Objectives and Outputs:

The PFIs will issue sub-loans to private residential stakeholders, including individual and group homeowners, housing associations, condominiums and cooperatives. Eligible sub-projects will consist of investments in high performing EE technologies and measures, which can be expected to achieve a minimum energy savings of 20 percent compared to market norms.

EBRD funds will be complemented by mobilized PFIs’ UAH resources for a total amount of up to €65 million equivalent of sub-loans. Incentive grants of €15 million provided by the Eastern European Energy Efficiency and Environmental Partnership (E5P) and $25 million provided by the CTF will support the launch and implementation of the Framework through investment incentives for sub-borrowers, partial hedge of FX risks and credit loss cover for loans to Housing Associations.

UREEFF is expected to generate transition impact by demonstrating benefits of household energy conservation and promoting the expansion of EE investments in the otherwise difficult residential sector. It will also support the expansion of the market for sustainable energy equipment and services, resulting in increased competition among the suppliers, installers and vendors. The Project will help develop and demonstrate effective financing mechanisms for residential energy efficiency projects. UREEFF will ensure necessary skill transfers to PFIs sub-borrowers and project stakeholders (local engineers, architects and designers) acquired through sub-project implementation as well as through dedicated trainings.

The Facility will also contribute to strengthening of the regulatory framework related to EE in housing legislation. It will support the creation of new market players such as bankable housing associations and private housing management companies. The targeted clients are Ukrainian commercial banks with extensive outreach, institutional capacity and commitment to successfully mainstream residential EE financing.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Details
Cover NoteProject Document​Proposed Decision
Approved on October 24, 2014 (Approved Decision)
Approved amount(s):
USD 24.0 million (grant funding)
USD 44,000 (grant funding for knowledge management)
USD 108,000 (MPIS)