Ukraine’s economy is one of the least energy efficient and most emission intensive in the world. As a result, the country is a major contributor to global climate change. In order to produce a unit of its Gross Domestic Product (GDP), Ukraine emits more anthropogenic greenhouse gases than almost any other country. Ukraine’s high GHG emissions are related to its energy intensity, which is over three times higher than the European Union (EU) average (International Energy Agency (IEA), 2012). Ukraine’s inefficient energy use impedes economic growth, leaves the economy highly vulnerable to price shifts, draws governmental and private sector resources away from other priority issues, and creates dependence upon foreign energy suppliers.

To enhance Ukraine’s energy security and reduce GHG emissions

USAID’s clean energy program enhances Ukraine’s energy security by reducing the country’s heavy dependence on imported energy resources. USAID supports clean energy reform in Ukraine’s municipal sector, a large consumer of energy resources, by strengthening the legal, regulatory and institutional frameworks necessary to enable clean energy investment in Ukrainian cities. USAID is also helping Ukraine initiate low emission development strategies to reduce Ukraine’s carbon footprint and enable sustainable development.

Municipal Energy Reform Project (MERP)

MERP is a four-year, $13.5 million project with the goal of reducing and mitigating greenhouse gas emissions in Ukraine resulting from the poor use of energy resources, which will lead to strengthened energy security and economic growth. The project will 1) support improvements in the clean energy regulatory and legislative enabling environment; 2) promote investment in clean energy technologies and applications; 3) provide local capacity building training and raise awareness; and 4) enhance the Government of Ukraine’s capacity in Low Emission development strategies (EC LEDS).

Local Alternative Energy Solutions in Myrhorod
The project’s goal is to develop and test sustainable solutions for increased utilization of locally available alternative energy sources (biomass) in Myrhorod Rayon, Poltava Oblast. This will help identify critical elements for a reliable clean energy infrastructure for local economic development. The results should improve the quality of life for local communities, while renewable energy will replace imported natural gas, and CO2 emissions and energy bills will decrease.

Other Energy Programs

USAID’s energy efforts also include a Development Credit
Authority (DCA) component designed to promote end-use energy efficiency and renewable energy investments through credit guarantees to Ukrainian banks. The first guarantee is in partnership with Bank Lviv to provide $10 million in private financing to support end-use energy efficiency and renewable energy investments in Ukraine over the next 7 years.

USAID/Washington’s Bureau for Europe and Eurasia (E&E) also supports energy efficiency in Ukraine through annual contributions of $1.5 million to the Eastern European Energy Efficiency and Environmental Partnership (E5P) fund, a multidonor fund managed by the European Bank for Reconstruction and Development, designed to promote energy efficiency investments in Ukraine and other eastern European countries.

E&E also provides support to Ukraine under the Energy Community framework, which is aimed at the development of harmonized regional electricity and gas markets that are fully integrated with the EU internal energy market.


  • Energy reform legislation drafted and submitted to the Government of Ukraine: Draft Law on Energy Efficiency (EE) in Buildings; Draft Law on Energy Service Companies (ESCO); Draft Law on Ownership in HOA Buildings; Draft Standard on Energy Audit of Buildings; improvements to the Draft Law on Metering; Draft National Action Plan on EE; Draft Law on Measurement Reporting and Verification (MRV); Draft Regulation “Rules for monitoring, reporting and verification of greenhouse gases emissions.”
  • New communal services norms and social subsidies developed. About 748 Ministry of Social Policy staff trained.
  • Cost recovery tariffs approved for heat and water/waste water. Utilities and Regulator trained and assisted on calculation and approval of new cost-recovery tariffs.
  • Seven partner cities engaged in development of Sustainable Energy Action Plans (SEAPs). Two SEAPs approved by the city administrations.
  • Trained 690 public and private sector professionals on efficient use of energy resources.
  • Raised public awareness through 17 energy efficiency, clean energy and renewable energy public outreach/public information events helped raise awareness among attended by 6,000 people.

Local Alternative Energy Solutions in Myrhorod
A Resource and Logistics Center for Bioenergy Development was created in Myrhorod in September 2014. The Center provides legal, technical, informational and organizational support for bio-energy development in Myrhorod. It promotes sustainable development and serves as a liaison for disseminating bio-energy projects throughout Ukraine.

Last updated: August 04, 2015

Share This Page