Entrepreneurs will be able to modernize their own production. The Decarbonization Fund provides entrepreneurs with loans for modernization. A mandatory condition for such projects is to reduce the energy intensity of production or services by at least 15% or to replace the use of traditional resources by at least 30% (solar power plants, heat pumps, biomass boilers, cogeneration, etc.).
Loans will be provided in amounts ranging from 120,000 to 25,000,000 UAH for a period of up to 10 years at a preferential interest rate of 9% per annum. Additionally, borrowers who use equipment from a national manufacturer (70% or more) will receive an additional 2% discount on the interest rate.
The credit program involves the signing of voluntary agreements on CO2 emission reductions. The State Energy Efficiency Agency will also introduce mandatory monitoring of energy resource consumption and CO2 emission reductions.
The launch of the new credit line became possible after the Verkhovna Rada approved the Law of Ukraine "On the Creation of the State Fund for Decarbonization and Energy Efficiency Transformation" in April 2023. In June 2024, the Government approved the Procedure for the Use of Funds from the State Fund for Decarbonization and Energy Efficiency Transformation. In 2024, the State Fund for Decarbonization and Energy Efficiency Transformation is expected to be funded through CO2 emission taxes amounting to 759 million UAH.
The new credit program complements existing state programs aimed at increasing the energy resilience and energy independence of households. Among them are the "GreenDim" and "EnergoDim" programs of the Energy Efficiency Fund, as well as the Ministry of Energy's program for lending to households for the installation of solar power plants with energy storage systems.
The Decarbonization Fund Launches a Credit Line for Ukrainian Businesses
ID no: 23319
Aug 28, 2024
Sep 12, 2024
