OREANDA-NEWS. February 24, 2016. There has been presented a Concept of an Energy Efficiency Fund, the prerequisites of the establishment of which has to be the sustainable financing approved by the government which makes it possible by reinvestment of savings from the implementation of projects and reductions  HUS subsidy’s pendings to the EE Fund. The concept was designed to reduce gas consumption for Ukraine by almost 30%.

The document was was prepared in cooperation with the Government of Germany, the EU Delegation to Ukraine, the EU Support Group to Ukraine, Berlin Economics, Coordination Center for Interaction with the CMU at the President of Ukraine, the State Agency for Energy Efficiency and Energy Saving of Ukraine, experts of the World Bank Group in Ukraine.

Ukraine heavily depends on energy imports that in the current geopolitical conditions causes high risks for energy independence. Natural gas takes the biggest share in imports of energy amounting to 19.5 billion m? (or15.7million tons of oil equivalent).

At the macroeconomic level, one of the main problems of the energy sector in Ukraine is inefficient mechanism of buildings’ heating, where about 60% of consumed energy is lost (an equivalent to nearly US\\$ 3 billion annually). In 2015-2016 the difference is financed from the state budget by the accumulated foreign loans.

The suggested Energy Efficiency Fund (EE Fund) should be a catalyst for attracting investments in projects aimed at reducing energy consumption for buildings heating and creating the proper infrastructure.

The presented Report shall become the basis for the single strategy and common activities for the following participants of the process: the Finance Ministry of Ukraine, the Ministry of Social Policy of Ukraine, the NRCEU, Naftogaz of Ukraine, Ministrty of Coal Industry and Energy, Ministry of Economic Development and Trade, the World Bank, the IMF, the EIB, the EBRD.

The main task is to ensure transparency and objectivity of decision making, sustainable financing, result oriented approach, ongoing reporting and monitoring. Therefore, the EE Fund attributes shall be the Steering Committee, Executive Committee, technical offices, international audit of EE Fund activities.