Ukraine

Last updated: May 2024

The country is one of the priority countries with which the International Climate Initiative (IKI) maintains a particularly close cooperation.

In terms of area, Ukraine is the largest country completely located within Europe. With a total of 44 million inhabitants, the country has high economic development potential. About two-thirds of the employed population works in the expanding service sector. The number of employees in industry (about a quarter) and agriculture (over 10 per cent) is declining, but is still considerably higher than in Germany.

Due to the fertile black earth soils and the high export rate of agricultural products, Ukraine contributes to ensuring global food security ("bread basket of the world"). The country has a large potential of highly qualified workers.

In the past, electrical and thermal energy in Ukraine was primarily produced from coal, gas and nuclear power. So far, the Russian war of aggression has also destroyed about 60 per cent of the power plant capacities, so that energy has now become very scarce and expensive. This also has an impact on the energy-intensive steel industry, which used to be one of the country's most important economic sectors. When reconstruction begins, the Ukrainian government is planning to focus strongly on renewable energies. However, it is important to improve energy efficiency in buildings, the central heat supply and industry at the same time. Due to the country's large agricultural sector, there is a lot of biomass available that can make a substantial contribution to sustainable energy supply.

The biodiversity in Ukraine is unique in Europe, which is attributable to the country's varied geography. The landscapes range from the Carpathian mountains, (primeval) forests, (forest) steppes, pastures, (salt) meadows and marshlands to the coasts of the Black Sea. The country, which only amounts to six per cent of Europe's surface area, harbours 35 per cent of the continent's biodiversity. This enormous abundance comprises over 70,0000 species, including brown bears, bison, buffaloes, wolves, elk and dolphins. Many of the species are rare or endangered. Some of the species are only native to Ukraine, or only found there now. The effects of the war not only have an impact on the people and infrastructure, but also particularly on the environment as well as on animals and vegetation.

The extent of environmental damage resulting from the war is difficult to estimate at the moment, also because some regions are temporarily occupied or are subject to ongoing military operations. Not only land mines pose a central risk factor, but also environmental damage resulting from chemicals, residual warfare materials and heavy metals - both for agriculture and for reconstruction .

The start of the large-scale war of aggression by the Russian Federation in February 2022 was accompanied by Russian air raids throughout the country and an invasion by Russian ground troops - and expanded the scope of the invasion of the Donbass region that has been continuing since 2014. At first, the project work of the International Climate Initiative was severely impaired. In the meantime, many projects have been able to resume their work and are able to continue thanks to the high level of motivation of the Ukrainian partners. The aim of the IKI is also to make use of these projects to contribute to green, climate-friendly reconstruction.
In the years prior to the full-scale Russian war of aggression, Ukraine continuously increased its climate action ambitions despite the difficult security, political and economic situation that already prevailed even then. On 31 July 2021, Ukraine submitted its updated NDC target, in which the 2030 target is significantly strengthened. Ukraine's GHG emissions (including land use, land-use change and forestry - LULUCF) are to be reduced by 65 per cent below the 1990 levels by 2030. The goal is to also achieve climate neutrality by 2060 at the latest. Ukraine has been a member of the NDC partnership since June 2019.

The country has developed a strategy for ecological safety and climate change adaptation by 2030. The implementation of the strategy aims to fulfil Ukraine's international commitments under the Paris Agreement regarding the mitigation of greenhouse gas emissions and adaptation to the impacts of global climate change.

In 1995, Ukraine ratified the Convention on Biological Diversity (CBD) and joined the Cartagena Protocol in 2003. The National Biodiversity Strategy and Action Plan (NBSAP) was submitted in 2010.
Ukraine and Germany have a close, long-standing cooperation in the climate and biodiversity sector. Since 2008, the IKI has supported Ukraine in its climate action efforts, in the adaptation to the impacts of climate change, and in the conservation and restoration of natural carbon sinks and the conservation of biodiversity.

The focus of the commitment of the IKI in Ukraine is on an ambitious climate policy and the mitigation of greenhouse gas emissions. In particular, the ongoing IKI projects support the further development of the Ukrainian NDC (nationally determined contribution) and the corresponding sector strategies including their implementation. The reduction of energy intensity and the associated actions towards energy efficiency play a crucial role in this respect.

Due to the effects of the Russian war of aggression against Ukraine, the IKI portfolio will in the future increasingly focus on the requirements of Ukraine for climate-friendly and resilient reconstruction. At the same time, the climate-relevant and biodiversity-friendly transformation will be promoted and accelerated.

In 2023, three new projects with a volume of 40 million euros were approved in the area of decentralised, renewable energies to restore the energy and heat supply. In addition, supplementary orders for existing projects and initiatives in the IKI portfolio totalling 7 million euros were approved.

Interface project

Most priority countries of the IKI also engage in so-called IKI interface projects, which have permanent project offices in the capital city of the respective country. Alongside their own, country-specific project commission, these interface projects are also tasked with maintaining close contact to environment and climate ministries as well as networking with other relevant ministries in the field of climate and biodiversity policy. Beyond this, the interface projects also work to network all of the IKI projects in the country and region together so as to promote synergies.

In Ukraine, the interface function is currently represented by the project Supporting the national energy efficiency fund and the climate-friendly reform agenda (S2I) in Ukraine.

Focal points of the project

Supporting the Ukrainian Energy Efficiency Fund (EEF); the EEF awards grants to housing owners' associations for the co-funding of energy efficiency measures in multi-family housing and supports housing owners' associations in repairing war-related building damage.
Function as an IKI interface project: coordination of the IKI portfolio in Ukraine, networking programmes and knowledge management for IKI projects in the country.

Project contact

iki-ukraine(at)giz.de

Supporting the national energy efficiency fund and the climate-friendly reform agenda (S2I) in Ukraine

In a nutshell

Region: Central, Eastern and South-Eastern Europe

Population: 38.0 million (World Bank, 2021)

CO₂eq emissions (incl. LUCF): 224,4 million t (ClimateWatch, 2020)

CO₂eq emissions per capita (incl. LUCF): 5.1 t (ClimateWatch, 2020)

Total energy supply (IRENA, 2020):

6 % RE (71 % Bioenergy - 10 % Hydro/marine - 6 % Wind - 13 % Solar)
17 % Oil
25 % Gas
24 % Nuclear
28 % Coal + others

IKI projects in the country (last updated: February 2024):

bilateral: 10 ongoing, 12 completed
regional: 5 ongoing, 5 completed
global: 6 ongoing, 1 completed

ClimateWatch

NDC partnership: country page

IKI partner ministries:

Ministry of Environmental Protection and Natural Resources
Ministry of Energy
Ministry of Communities, Territories and Infrastructure Development
Ministry of Agrarian Policy and Food

Links

UNDP: The Environmental Impact of the Conflict in Ukraine

Information from the Ukrainian Ministry of the Environment

WWF: ASSESSING the environmental impacts of the war in Ukraine

Center for Environmental Initiatives Ecoaction: Climate damage caused by Russia’s war in Ukraine

The IKI Strategy

The IKI wants to maximise its impact on climate action and biodiversity conservation. To this end, it concentrates its funding activities on prioritised fields of action within the four funding areas. Another key element is the close cooperation with selected partner countries, especially with the IKI’s priority countries.

Click here for the IKI Strategy