Mr Andrii Frolov (State Agency for Energy Efficiency and Energy Saving of Ukraine): Green bonds for financing energy efficiency and renewable energy in Ukraine

1. UKRAINE:
ENERGY EFFICIENCY and RENEWABLE ENERGY
State Agency on Energy Efficiency
and Energy Saving of Ukraine
ANDRII FROLOV
Deputy Head of Energy Efficiency and Energy Saving Reforming
Department - Head of Normative and Methodological Support Office

2. National Renewable
Energy Action Plan-2020
NATIONAL TARGETS
ON ENERGY EFFICIENCY AND RENEWABLES
Requirements of Directives 2012/28/EU and 2012/27/EU
National Energy Efficiency
Action Plan-2020
as of Oct.1, 2014, № 902-р as of Nov. 25, 2015, № 1228-р
Ukraine was the 20th country to ratify the Paris Agreement
The share of renewables in primary energy supply should be 25%
according to New Energy Strategy till 2035
11%
of Renewables in final
energy consumption
-9 % (6,5 mln t.o.e.)
of energy saving comparing
to the average final energy
consumption in 2005-2009
2

3. UAMAP comprises detailed information on more than 79 implemented and 101 potential
projects that require investments & soft loans in amount of
€ 4 bln
223
www.uamap.org.ua

4. 4
More than 20
Bln EURO
12
Bln EURO
National Renewable Energy
Action Plan-2020
Energy Strategy of Ukraine till 2035
Investments should be aimed at:
• Solar and Wing power stations
• Cogeneration units on biogas and biomass
• Waste processing plants
• Geothermal power plants
• Small hydroelectric power plants
• Production of liquid biofuel
REQUIREMENTS AND BARRIERS IN INVEST ATTRACTION
IN THE FIELD OF RENEWABLES AND ENERGY EFFICIENCY
Decree of Cabinet of Ministers of Ukraine №902-р
as of 01.10.2014
Decree of Cabinet of Ministers of Ukraine № 605 –р
As of 18.08.2017
World practice has
shown that
many countries use the
GREEN BONDS
as effective financial
instruments for
attraction of
investments for
"green" projects

5. 0.86 0,41 0,91 3.9 1.2 3.1
11
36.5 41.8
81,4
161,4
250-300
0
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10 11 12
DYNAMICS OF GREEN MARKET DEVELOPMENT IN THE WORLD
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$ bln According to the OECD
Energetics
Buildings and Industry
Clean transport
Waste management
Agriculture and forestry
Conservation of water resources
Adapting to climate change
* According to Climate Bonds Initiative 5
International
Financial
Institutions
49%
Corporations
5%
Banks
17%
States and
municipalities
8%
Bonds
guaranteed by
IFIs and states
1%

6. State Agency on Energy
Efficiency and Energy Saving and
other public authorities
2019 - 2020
Development of
legislation
Realization of pilot projects Attracting green financing
Introduction of the notion of
green bonds into Ukrainian
legislation and establishment of
legal regime of their issue in
the context of issuers;
Development of guidelines and
procedures for the green bonds
market.
Action Plan for
Implementation of the
"Energy Sector Reform 2020"
of the Energy Strategy of
Ukraine till 2035
Creation of conditions for
implementation of green bonds
market in Ukraine as a
mechanism to attract
investment in renewables and
energy efficiency projects
6
ROADMAP ON THE IMPLEMENTATION OF GREEN BONDS
MARKET IN UKRAINE
Feasibility studies preparation for
green projects and cost calculation
in the context of issuers;
Conducting an independent
valuation of issuers;
Estimation of bonds certification
according to the international
standards.
Preparation and holding of a large-
scale marketing session (RoadShow)
on the internal and external capital
markets;
Partners involvement for
cooperation (International Financial
Institutions, Green Climate
Fund, Green Bond Fund for
Developing Markets,
Institutional Investors, etc.)

7. The development of secondary legislation
-The order of evaluation and selection of "green"
projects;
-The order of financing and refinancing of "green"
projects;
- The order of monitoring of the use and
management of funds;
- The order of control and reporting standards.
Draft Law "On
Amendments to Certain
Legislative Acts of Ukraine
Concerning Facilitation of
Investment Attraction and
the Introduction of New
Financial Instruments" No.
9035 dated September 3,
2013)
Decree of Cabinet of
Ministers of Ukraine
Principles of
green bonds
that meet
international
standards for
issuing green
bonds
- concept of interest-bearing bonds of environmental
investments ("green" bonds);
- the circle of issuers of "green" bonds and the legal
regime of their issue;
- issuer's rights to the project of environmental
("green") investments;
- procedures for the targeted use of the proceeds
from the environmental ("green") investment project;
- norms that enhance the protection of the creditors'
rights.
Legal mode
of issue of
green bonds
in the
context of
issuers
LEGISLATIVE REGULATION OF THE IMPLEMENTATION
OF THE GREEN MARKET IN UKRAINE
The development of primary legislation

8. THANK YOU FOR
ATTENTION!
ANDRII FROLOV
Deputy Head of Energy Efficiency and Energy Saving
Reforming Department - Head of Normative and
Methodological Support Office of State Agency on
Energy Efficiency and Energy Saving of Ukraine
Contacts:
+38 (044) 590-59-71
andriy.frolov@ukr.net