Investments in improving the energy efficiency of small businesses are affected by the adverse economic situation in Ukraine. Under-investment as a consequence of the low liquidity of domestic banks and credit risks have become an issue of national importance to Ukraine’s attempts to improve its energy security.
Ukrexim is the fifth largest bank in Ukraine and it acts as the sole financial agent of the government. It manages an internationally financed credit line, which reduces greenhouse gas emissions by implementing energy efficiency measures in the commercial and industrial sector in Ukraine. Investments include the modernization or replacement of boilers or pumps, cogeneration or other measures to improve energy efficiency. The beneficiaries are diverse in terms of sector and size, ranging from bakeries, greenhouse complexes, shopping malls and food processing companies to battery, beer, confection, machine building and cement factories.
This credit line was subject to a due diligence initiated by an investor from Germany. The investment into the Ukrexim credit line would be part of a transaction under Article 17 of the Kyoto Protocol. As project manager, and at the time shareholder of Climate Focus, I coordinated a team of due diligence experts.
Client: A German bank
Partners: Climate Focus