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Can green buildings solve Ukraine’s energy poverty?

The European Ukrainian Energy Agency (EUEA) is calling for the government to promote initiatives and green incentive instruments for Ukrainian buildings.

“In Ukraine, the bank interest for mortgages is on average 15-17 per cent and to stimulate the real estate market, the government launched the State programme Affordable Mortgage 7 per cent”, explained Oleksandra Gumeniuk, EUEA Director after an online webinar entitled Smarter Finances: How Green Buildings Can Help Overcome Energy Poverty in Ukraine.

The mechanism requires that the Business Development Fund will compensate the interest rate to 7 per cent per annum on mortgage loans provided to borrowers to purchase housing, in order to reduce its value. The Fund will offer compensation to borrowers who have received a mortgage in the national currency at an authorised bank. However, only housing built after 2015 can participate in this program.

Although the Government of Ukraine has repeatedly stressed that the European Green Deal is important for the country, Mrs Gumeniuk noted that the State programme has zero criteria for buildings that they have to be energy-efficient, green and sustainable.

“So our goal is to start the public negotiations and promote that this State programme must include these criteria,” she continued.

Andrii Gapon, Executive Director of the Business Development Fund presented the conditions, results and changes that are planned to be introduced in the state program Affordable Mortgage 7 per cent and expressed interest in the topic of green buildings and green mortgages.

“So we hope, in Ukraine, the green mortgage will be introduced as well soon and EUEA works on its advocacy on daily basis,” concluded Mrs Gumeniuk.

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