“The Energy Efficiency Fund should become a powerful tool of state support for citizens” – Aliona Babak

Today, the Verkhovna Rada voted in the first reading for a bill on the Energy Efficiency Fund. As stated by Samopomich MP Aliona Babak, the adoption of this bill is a sign of Ukraine’s determination to support priority reforms, among which there is energy efficiency in residential buildings.

The draft law provides for the establishment of an institution that will provide state support to the citizens borrowing money for heat insulation of their homes.

“Today such support is provided through state programs – for example, the program of “warm loans”. But every year there is fighting over the allocation of funds for this program, then there is voting for the budget, drafting of the Cabinet’s resolutions. If everything goes well, they come out somewhere in March, if not in May. And then there are several months to go to implement this program.

While the need for investment in energy efficiency of buildings is extremely high. In Ukraine, there are about 200,000 apartment buildings, and people need to know that there is such a tool of state support that exists outside the budget process and sets clear conditions for financing and support,” states Aliona Babak.

According to the people’s deputy, this is the reason why a separate fund is created. In addition, there are proposals from donors who are ready to support the reform of energy efficiency in Ukraine. For example, the European Commission is ready to provide 100 billion hryvnias as an irrevocable assistance if Ukraine also shows a willingness to support modernization and energy efficiency, by creating a separate fund, among other things.

“The bill suggests that the fund be a financial institution that provides loans on a return basis. Ideologically, it is believed that this fund will be rather a customer of services from banks that will give loans to people, while the fund will additionally provide compensations along with these loans in the form of subsidies, subventions – that is, on an irretrievable basis. Therefore, it is important that such a fund stay transparent in its activities when distributing grant financing. And we will have to double check these aspects when preparing the bill for the second reading,” concludes Aliona Babak.

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