Bern, June 19, 2018 – IFC, a member
of the World Bank Group, signed an agreement today with the government
of Switzerland to facilitate energy efficiency renovations in Ukraine’s
The Swiss State Secretariat for Economic Affairs
(SECO) will provide up to $1.8 million to IFC Advisory Services to support
legal reforms that will support energy-efficiency refurbishments by engaging
with housing management companies on behalf of homeowners’ associations.
Ukraine has one of the largest housing stocks in Europe, but many homes
are old and inefficient. Poorly insulated buildings lose as much as 50
percent of their heat.
The initiative represents the third and the
final phase of IFC’s Residential Energy Efficiency Advisory project in
Ukraine, which started in partnership with SECO in 2010. The first two
phases of the project achieved remarkable results, including the adoption
of legislation that enabled energy efficiency reforms in the housing sector,
up to $250 million in energy efficiency investments for individual households
and homeowners’ associations, and the development of banking products
for homeowners’ associations for energy efficiency upgrades.
Ambassador Raymund Furrer, Head of Economic
Cooperation and Development, said: “The project reflects our joint aspiration
to create sustainable local markets and to reach scale. It needs a long-term
vision. In fact, the work we initiated in 2010 has kick-started a market
that did not exist before. This market will also reach scale in CO2 emission
reductions. By its end, the project is expected to deliver CO2 emission
reductions that correspond to roughly 2% of the total Swiss annual CO2
“The agreement with Switzerland will be instrumental
to our long-standing joint commitment to improving energy efficiency in
Ukraine’s residential sector and contributing to the fight against climate
change,” said IFC CEO Philippe Le Houérou. “The partnership with SECO
is an example of how official development assistance can help create the
right enabling environment and leverage private sector resources to deliver
climate-smart and energy-efficient solutions.”
The agreement with Switzerland complements
the Ukrainian Energy Efficiency Fund (EEF), a new initiative developed
by the Ukrainian government, with combined support from the EU and Germany
to provide grants to homeowners’ associations for energy efficiency renovations
in multi-family buildings.
SECO is one of the largest partners to IFC
Advisory Services. Cooperation between SECO and IFC Advisory Services first
started in 1989.
SECO is Switzerland’s competence center for all core issues relating to
economic policy. SECO’s economic development cooperation strives to achieve
inclusive sustainable growth and poverty reduction. Its activities aim
to create more and better jobs, to enhance trade and competitiveness, to
support effective institutions and services and to foster climate resilient
economies. For more information, visit www.seco-cooperation.admin.ch
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org.