Ukraine : Investment Plan for the Clean Technology Fund

Abstract

This report describes the Ukraine Investment Plan for the Clean Technology Fund. Ukraine is a lower middle income country, with GDP per capita of US$1,940 in 2006. After a decade of steep economic decline, economic growth rebounded in 2000 and GDP grew by about 7.5 percent per year on average until 2007. To recover its economic growth and improve competitiveness, Ukraine will need to address a combination of challenges. Improving the energy efficiency of the economy and thereby reducing its vulnerability to further import price shocks, as well as modernizing the energy sector to make it more efficient, are among those challenges. The Energy Strategy of Ukraine for the Period until 2030, adopted in 2006, provides a platform for addressing these issues over the three distinct phases of development envisaged for the country. Energy and industry are the priority sectors for intervention as they account for 69 percent and 22 percent of country s GHG emissions, respectively The interventions with the highest potential for reducing GHG emissions in Ukraine are: (1) energy efficiency; (2) increased use of nuclear power; (3) implementation of high efficiency combustion technologies and carbon capture and storage (CCS) for new coal-fired plants; and (4) renewable energy.