20:36 12.01.2023

Germany to finance eco-modernization projects for Ukrainian businesses for up to EUR 2 mln each - Minister of Natural Resources

3 min read
Germany to finance eco-modernization projects for Ukrainian businesses for up to EUR 2 mln each - Minister of Natural Resources

The German government has allocated funds for the eco-modernization of Ukrainian enterprises under the Best Available Techniques (BAT) for Ukraine program, which provides co-financing of several projects for the implementation of BAT by businesses in the amount of up to EUR 2 million each, Minister of Environmental Protection and Natural Resources of Ukraine Ruslan Strilets said.

"We understand that we must make great efforts to obtain financial tools to restore our economic sustainability. And it is important to carry out this restoration with technologies that will be less harmful to the environment," Strilets said, whose words are quoted in the release of the ministry with reference to his speech at the national telethon on Thursday.

He clarified that the submission of documents for participation in the program is open, and the selection of projects will continue until February 28, 2023.

At the same time, the minister noted that the Ministry of Natural Resources, together with MPs, finalized necessary framework bill No. 6004-d, which will outline the framework for eco-modernization and restoration of enterprises using the best available technologies and will allow attracting international technical assistance for the implementation of such projects.

The Minister expressed confidence that the experience of implementing this program will be a qualitative start of cooperation with other European partners.

He cited data from the Kyiv School of Economics, according to which, since the beginning of the war, at least 412 enterprises had been damaged or destroyed in Ukraine, of which 64 are large and medium-sized.

As for the post-war recovery of Ukraine in general, according to Strilets, there is indeed a clear understanding at the highest political level of Ukraine that its recovery should be green and using the best available technologies, and the European Green Deal, which Ukraine joined back in 2020, can become the basis of the country's post-war green development.

In his opinion, for Ukraine this is not only an opportunity to contribute to the global fight against climate change, but also to solve the problems that have arisen after February 24, 2022.

"After all, no one will argue that it is important for us to develop green energy, because our energy security and the energy security of Europe depend on it. It is important for us that every destroyed house be restored in line with new standards, and every kindergarten, school, other social facility – built with modern energy-saving technologies. We are already taking steps today to attract investment in such projects," the Minister of Natural Resources said.

According to the information on the website of the German Agency for International Cooperation (GIZ), it is implementing the project Best Available Techniques (BAT) for Ukraine on behalf of the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection and will help Ukrainian enterprises introduce these technologies and reduce industrial emissions. The Ministry of Natural Resources of Ukraine is a political partner of the BAT project in the industrial pollution reform.

According to the terms of participation in the project, grants in the amount of 20% of the total costs for the implementation of the BAT project were provided as co-financing, but not more than EUR 2 million per project, within the limits of the available funds of the program.

Some 80% of the grant is paid in parts in accordance with the plan for the purchase of equipment/services of the enterprise, and 20% – after the final audit.