"UIF — Opportunity for Green Financing" — Dmytro Sych
In the context of Ukraine's post-war reconstruction, the issue of attracting "green" financing is becoming increasingly relevant. The Ukraine Investment Framework, as the investment component of the comprehensive Ukraine Facility initiative, opens new prospects for implementing projects aimed at decarbonization and ensuring sustainable economic development.
The Ukraine Investment Framework (UIF) is an investment mechanism established under Pillar II of the Ukraine Facility to support Ukraine's recovery and modernization. The total funding within this instrument amounts to €9.3 billion, of which €1.5 billion comes from the EU in the form of blended finance (loans, grants, technical assistance), and €7.8 billion in the form of Ukrainian guarantees.
"International partners pay significant attention to green financing, and the allocation of funds for Ukraine's reconstruction and economic recovery is no exception. This is why the Ukraine Facility includes a requirement to direct part of the financing toward projects that will facilitate the green transition and environmental protection," notes Dmytro Sych, Senior Expert on Green Transition at DiXi Group NGO and Green Financing Expert at the Green Transition Office under the Ministry of Economy of Ukraine.
According to the requirements of Section IV of the Ukraine Facility Regulation, at least 20% of funds must be allocated to initiatives that contribute to climate change mitigation and adaptation, environmental protection, including biodiversity conservation, and the green transition.
The first phase of the Ukraine Investment Framework has brought together leading international financial institutions (IFIs) and development banks, including the International Finance Corporation (IFC), European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), German Development Bank (KfW), and Polish National Economy Bank (BGK). Analysis of these international financial institutions' policies and practices demonstrates their commitment to sustainable development principles. Most IFIs have clear environmental policies and ambitious plans to increase the share of climate and environmental investments in their portfolios—often exceeding 50%. This creates significant opportunities for Ukrainian enterprises prepared to implement low-carbon projects.
The Ukraine Investment Framework has already begun implementation. At the Ukraine Recovery Conference in Berlin in June 2024, 12 agreements were signed, forming the first wave of programs within the initiative. In March 2025, the signing of eight additional programs was announced. It is expected that further agreements will be signed at the next URC conference in Rome in July 2025, expanding opportunities for environmentally-focused projects. This indicates the continuous development of the instrument and growing interest in green financing in Ukraine.
The Ukraine Investment Framework has the potential to become a key instrument for financing the green transformation of Ukraine's economy. To realize this potential, it is necessary to ensure transparency of procedures, accessibility of information, and effective communication among all stakeholders.
"In the context of Ukraine's reconstruction and European integration, green financing through the Ukraine Investment Framework is a logical continuation of both national and European policy. It allows not simply to rebuild what was destroyed, but to create a modern, resilient, and competitive economy that will align with the EU's environmental and climate objectives," concludes Dmytro Sych, Green Financing Expert at the Green Transition Office under the Ministry of Economy of Ukraine.
For complete substantiation of the provided data and a comprehensive analysis of green financing opportunities through the Ukraine Investment Framework, please refer to the extended analytical document available at this link.
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