UNDP contributes to climate change mitigation and adaptation and development towards a low-emission and climate-resilient economy by removing policy bottlenecks, developing market mechanisms, and assisting municipalities in implementing energy-efficient solutions. UNDP supports the government and parliament of Ukraine in drawing up quality legislation on sustainable energy and environmental issues, and works with the government and private sector on meeting Ukraine''s obligations under the Montreal Protocol.
UNDP focuses on advancing energy efficiency measures in public buildings through the ESCO modality, and increasing the use of sustainable agricultural biomass as a fuel for municipal heating. UNDP supports Ukraine in meeting the provisions of the Montreal Protocol and implementing local-level climate-change mitigation measures.
As a result of UNDP''s technical support, the city of Zhytomyr (population of 266,936 people) now derives 95 percent of its energy for heating from biomass boilers. Biomass development was proposed by the government of Ukraine to be the only specific renewable energy area to receive support from the international community – $7 million has already been mobilized. This is attributed largely to UNDP''s advocacy at the national level.
Some 63 tonnes of ozone-depleting substances (ODSs) have been eliminated from the production cycle of the biggest ODS consumer in the country (Polyfoam Ltd.) through a complete technical overhaul at the company. This achievement brings Ukraine into closer compliance with the provisions of the Montreal Protocol through stabilizing and then progressively reducing HCFC consumption.
Private energy-saving companies received over $700,000 in commercial bank loans for energy efficiency solutions for public buildings through a new financial support mechanism set up by UNDP.
CO2 emissions are reduced by over 7,900 tonnes annually in pilot public buildings through improved energy efficiency measures, including proper energy management in over 587 public buildings in 10 cities and 48 villages in Ukraine, contracts with private energy-saving companies, and the use of modern bioenergy technologies in municipal heating across Ukrainian municipalities.
Over 2 million cubic meters of water has been replenished after cleaning work at four water reservoirs and two hydrotechnical installations in Nyzhin Rayon (Chernihiv Oblast), which increased the level of ground water to 1.5 meters. This reduced the risk of peat fires, and improved air quality for over 100,000 men, women and children in nearby territories, while preserving a key ecosystem on more than 6,000 hectares of land.
UNDP supports the parliament of Ukraine in developing legislation on sustainable energy and environmental issues, monitors policy impact, and raises awareness of the government and general public about the urgency of environmental action.
The parliament of Ukraine has improved its capacity to develop evidence-based legislation on sustainable energy and environmental issues, such as the law on Electric Vehicles, which is expected to increase the size of the market for electric transport by ten times, reducing emissions and air pollution. Parliament received UNDP expert support in the preparation of 30 draft laws and strategies, along with the 193 analytical documents on sustainability issues and promoting the green agenda.
A draft law on reducing the use of plastic bags was submitted to parliament following effective communication outreach organized by UNDP, uniting over 100 partners around the country, including the biggest retailers, CSOs, opinion leaders, and government representatives. All took specific measures to reduce single-use plastic consumption.
Over 4,600 environmental impact assessments, screened by government experts, are now open to public scrutiny through an innovative registry, allowing communities to stop environmentally damaging economic activities.
Changing patterns of energy consumption is critical to reduce emissions and enhance energy security. According to the International Energy Agency''s (IEA) recent report on global energy investment, "investment in energy efficiency and electrification in buildings and industry has been quite resilient, despite the economic headwinds." In 2023, the European Union spent four-and-a-half times more on energy efficiency than fossil fuels ($164 billion vs $36 billion). Besides renewables, energy efficiency initiatives become the most prominent driver for energy transition.
Ukraine''s postwar recovery plan aligns with this trend. Leaders and international partners envision a sustainable country, not only in the military and economic realms but also in the energy sector. These transformations have already begun without waiting for the artillery to go silent.
In the 2010s, Ukraine was among the least energy-efficient countries in Europe. It burned twice as much energy to generate $1 of GDP as Poland. The service sector consumed about 10 percent of the country''s total energy. It was not uncommon to see overheated government buildings in winter, where the temperature was controlled by the opening and closing of windows instead of thermostats. On the other hand, local councils, hospitals, and schools often struggled with heat loss due to poorly insulated walls, prompting staff to use electric heaters to compensate.
Ukraine inherited its electric infrastructure from the Soviet Union, where energy efficiency was never a priority. For Moscow, cheap energy was a tool of political control, a bribe to ensure loyalty from the "people''s republics" that composed the union. This strategy was reborn in the 2010s, as Russia sought to influence EU policy through its energy exports.
Although Ukraine gained independence in 1991, energy independence remained a distant goal. The country''s energy inefficiency was draining taxpayers'' money, heavily burdening national and local budgets.
Transformations started after 2014 when Kyiv signed the Association Agreement with the European Union. This brought it in line with the EU''s Energy Efficiency Directive. In several years, the state has achieved remarkable progress, including the Energy Efficiency Fund, which was launched in 2018. Non-government organizations, like East Europe Foundation, were broadly advocating for and supporting government initiatives.
In 2022, the Ukrainian Ministry of Finance conducted an energy audit of its headquarters, revealing the potential to cut heating costs by 20 percent—saving up to UAH 1.3 million annually (around €30,000). Implementing such measures nationwide could add millions of euros to the state budget, an intelligent move for a country locked in a war of attrition. This realization sparked a energy modernization drive in government buildings.
The ministry turned to the East Europe Foundation (EEF) for partnership. EEF''s expertise resulted in the Power Up! initiative. The project provided mini-grants to war-affected Ukrainian enterprises, helping them implement energy-efficient solutions. The initiative expanded beyond the Ministry of Finance to include three administrative buildings in Kyiv and ten enterprises in the Sumy, Kharkiv, and Chernihiv regions.
Supported by the German government via a program implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and co-financed by the Swiss State Secretariat for Economic Affairs (SECO), the project ran from July 2023 to February 2024.
The Ministry of Finance building received thermal insulation for its heating pipes, LED lighting, and an automatic temperature regulation system. Additionally, 310 square meters of photovoltaic panels were installed, providing electricity for up to 100 ministry employees.
As a result, the Power Up! project is expected to save at least 3,000 MWh annually across the ten selected enterprises.
In February 2023, the World Bank estimated Ukraine''s reconstruction and recovery needs after the first year of war. The figure reached $486 billion and continues to rise. Yet, there is a crucial idea behind this assessment.
The recovery plan envisions not simply rebuilding but "building back better." The scale of the destruction offers an opportunity for the country to start from scratch and transform its infrastructure, including the energy system, fundamentally. The goal is to leap from a post-Soviet energy model to a modern, low-carbon, and energy-efficient one that meets EU directives and policies.
The recovery must rest on four pillars to succeed: expertise, experience, planning, and strict oversight of funds. The role of Ukrainian non-government organizations is essential here. With their deep understanding of local contexts and rigorous compliance procedures, NGOs are positioned to stitch together the interests of donors and recipients, ensuring a swift and effective postwar renaissance.
The Power Up! project has set an example, demonstrating that energy transformation is possible even amid war. Although the initiative''s immediate impact may be modest—thirteen buildings alone would not drastically change the country''s overall energy consumption—the project''s true aim is to pave the way for larger, more transformative efforts. Efforts that, gradually aggregating, will deliver a game-changing effect for Ukraine.
Image: Oscar Gonzalez Fuentes / Shutterstock .
The war in Ukraine, which has caused immense suffering and resulted in the destruction of critical infrastructure, demands urgent action to rebuild the country and its energy system.
Today, Ukraine heavily depends on fossil fuels, which accounted for some 70% of its primary energy supply in 2020. The Russian invasion has resulted in the occupation (the Zaporizhzhya nuclear power plant and about 44% of total thermal power capacities) and destruction of critical energy infrastructure triggering a sharp decline in total energy supply, while electricity demand had fallen by 40% by October 2022.
In view of their high untapped potential in the country, bioenergy, hydro, solar and wind generation could constitute the building blocks of Ukraine''s future energy system, contributing up to nearly 80% of total energy generation by 2050. Provided key strategies and investments are put in place, and complemented by nuclear, renewables could propel Ukraine towards a carbon-neutral future. These are the main findings of the pathway scenarios developed by UNECE, based on its UNECE Carbon Neutrality Toolkit, published ahead of the Ukraine Recovery Conference (London, 21-22 June).
"This report aims at serving as a roadmap for policymakers and stakeholders, providing insights and recommendations for Ukraine''s energy transition," said UNECE Executive Secretary Olga Algayerova. "UNECE will continue to collaborate with the Ukrainian government, international organizations, and partners towards reconstruction and recovery for a just and sustainable future for Ukraine, in line with global climate commitments".
Reducing dependence on fossil fuels and enhancing energy security
Achieving carbon neutrality would necessitate a radical transformation, including the phase-out of unabated fossil fuels, massive improvements in energy efficiency and harnessing modern bioenergy.
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