The International Finance Corporation (IFC), a member of the World Bank, is providing a financing package of up to $150 million (€134,36 million) to assist sustainable energy investments in Ukraine.
Local vehicle and equipment leasing company OTP Leasing will use the financing to assist small-and-medium-sized businesses to invest in energy-efficient machinery and upgrade their facilities with modern equipment to support lower carbon emissions.
The move follows the country's launch of a new wholesale energy market in July 2019 - a necessary move to qualify for EU Commission assistance, which led to higher electricity costs for Ukraine's large industrial sector, which is said to still rely heavily on outdated and energy-inefficient production and manufacturing practices.
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Georgina Baker, IFC Vice President for Europe, Central Asia, Latin America and the Caribbean said: “Investment in climate change mitigation and sustainable growth is among IFC’s priorities in Ukraine.
“This first IFC green-leasing project in Ukraine aims to promote growth in the country’s leasing sector, especially among smaller agricultural players and entrepreneurs. It will also help attract other investors, ultimately bolstering Ukraine’s climate finance market, enhancing access to finance and creating jobs.”