The project’s goal is to reduce greenhouse gas emissions in Ukraine by creating favourable legal, regulatory and market environment and building institutional, administrative and technical capacities to promote the utilisation of the country’s extensive agricultural biomass potential for municipal heat and hot water services. The objective of the project is to significantly increase the use of biomass energy as a fuel source for heating and hot water services in the municipal sector in Ukraine by at least 20% over the baseline scenario in order to reduce direct greenhouse gas emissions by 63,577 tons of CO2 over the 4-year life of the project and, subsequently, 19,143 tons of CO2 during each year of the remaining 16-year life of the boiler equipment.
Creating attractive and competitive business terms and conditions for investors, such as initial support in the preparation of feasibility studies and in terms of an investment grant, which will give developers long-term stability and provide for sufficient investment return;
Streamlining and simplifying the administrative procedures for developers of projects utilising agricultural biomass for heat and hot water services and assisting the Ministry of Agrarian Policy and Food to promote the market for municipal biomass through the establishment of a Biomass Support Unit;
Developing capacity within the financial institutions to appraise municipal biomass projects for incorporation into its lending operations, including establishment of a dedicated line of credit at concessionary rates;
Facilitating implementation of initial municipal biomass projects by assisting to put in place a fair and transparent project selection process, supporting subsequent negotiation and signature of licensing agreements and providing technical support and oversight throughout the construction process.
From a technical point of view in the international market, the feasibility of use of biomass for municipal heat and hot water are already proven in developed countries and, to some extent, in countries that are developing. Eliminating non-technical barriers which hamper the development of this activity in Ukraine, the project will help to create sustainable niche through strengthening the policy, institutional, legal, regulatory and operational capacities of key national institutions, supporting the development of municipal services on the basis of biomass to provide heat and hot water supply market method, national capacity development and dissemination of information. These efforts will ensure long-term sustainability of biomass in the municipal sector of the country.