Reigniting a European industrial heartland in an era of climate change
Ukraine was once considered an industrial powerhouse. However in recent years, political and economic instability, combined with the country’s inefficient use of energy and high energy prices, have significantly hindered Ukraine’s economic performance and industrial competitiveness.
Determined to fulfil Ukraine’s economic potential, in 2015 the government announced its national energy strategy, which outlines the country’s long-term energy development priorities with the goal of integration into European energy markets. One key goal is to significantly improve the energy intensity of the national economy by more than 50 per cent by 2035. Such an ambitious target will require a major overhaul of outdated infrastructure and an industrial sector wide prioritization of energy efficiency. If successful, Ukraine will be well placed to take its rightful place as a major European economy in an unprecedented era of climate change.
Accelerating industrial energy efficiency in Ukraine
The Ukrainian government aims to improve its energy intensity by more than 50 per cent before 2035. However, there are a number of systemic barriers which are contributing to slower than hoped progress.
In an effort to reduce emissions and enhance Ukraine’s industrial competitiveness, this project is helping to kick-start the adoption of an internationally aligned national energy management system standard known as IS0 50001. The project also focuses on improving energy efficiency and energy management practices through training, advocacy and investment generation.
ADVOCACY AND POLICY SUPPORT
In coordination with Ukrainian Government counterparts and other key stakeholders groups, UNDIO is working to strengthen industrial energy efficiency accreditation and certification schemes such as the ISO 50001 energy management system. This work includes support for the development of legislation, which will encourage wide scale implementation of industrial energy management standards.
Know-how for Industry
UNIDO’s training modules on energy management systems are currently being delivered throughout Ukraine to various industry and energy management practitioners. In total, the project expects to train more than 450 people in energy management and energy systems optimization best practice. A widespread industrial energy efficiency awareness campaign, targeting decision makers on the benefits of industrial energy efficiency, is also being implemented. This campaign aims to introduce the concept of energy system optimization, as well as the benefits of industrial energy efficiency in terms of cost savings, competitiveness and environmental impacts.
Financing for Efficiency
In Ukraine there is substantial finance available for energy efficiency projects. However extremely high interest rates, collateral requirements and limited capacity to present solid project proposals limit the overall flow of investment into energy efficiency improvements. To address these barriers, the project will launch a Loan Guarantee Facility (LGF) for industrial energy efficiency investments. The guarantee scheme is designed to reduce risks and losses by providing securities to financial institutions while simultaneously improving access to much needs capital for enterprises. Ultimately it is hoped that this loan guarantee will stimulate investment into technology upgrades and energy management systems.
3.3 billion kw
580 thousand tons