OREANDA-NEWS. April 26, 2011. IFC, a member of the World Bank Group, partnered with Erste Bank Ukraine to help develop energy efficiency finance expertise in the country and launch new financial products for businesses implementing energy efficiency improvements.

The initiative, the first such agreement in Ukraine, will build on IFC’s unique expertise and Erste Bank Ukraine financing. Sustainable energy has become a global priority, and improving energy efficiency is central to IFC's climate change strategy.

Ukraine’s economy is one of the most energy-intensive in the world. Its modernization will require private sector investment and focus, which is opening new opportunities for the banking sector. Having developed a sustainable energy finance market in neighboring Russia by partnering with local financial institutions, IFC will use that experience to help Erste Bank create in-house energy savings consulting expertise.

“Financing projects with positive environmental impact is Erste Bank’s global strategy, and most of Erste Group banks are successfully implementing such projects in their local markets in Central Europe,” said Pavel Cetkovsky, Erste Bank Ukraine CEO. “There is no doubt that energy efficiency is a promising market in Ukraine. With IFC support as well as Erste Group expertise, we are ready to help Ukrainian companies implement energy efficient technologies by providing them the necessary financing and consulting.”

“With this agreement one of the leading banks in Ukraine – Erste Bank – has recognized the opportunity for energy efficiency investments,” said Elena Voloshina, IFC’s Head of Operations in Ukraine. “We will provide advisory services to help the bank and its clients maximize their investments in energy efficiency. IFC’s experience in neighboring markets shows that these investments have a high economic rate of return as they offer an opportunity to improve competitiveness.”

Expanding access to energy efficiency financing is a priority for IFC in the region.  IFC’s Sustainable Finance Program in Ukraine provides a wide range of advisory services to financial institutions, their clients and other market players to support investment in energy efficiency. IFC is implementing the 3-year project in partnership with the Austrian Ministry of Finance, and the EVD Agency of the Netherlands Ministry of Economic Affairs.