Klevan, an amalgamated community, has created a revolving fund to support energy efficiency and renewable sources. This is the first in the Rivne region and the third such fund in Ukraine. This tool and other like it prevent climate change and develop the local economy.
On June 27, 2018, the Klevan settlement council deputies almost unanimously voted for the creation of a revolving fund. Such fund provides cheap loans to community members. Repaid borrowers’ funds continue to be used to provide loans for more people in the community. The main difference from the usual programmatic method of financing is the money is used irrevocably.
The revolving fund in Klevan’s amalgamated community is for 3 years. Each year, the community budget will be allocated funding for its amount of 100 000 UAH. The first round in 2018 is expected by the end of July.
Borrowers will be able to get a maximum of 20 000 UAH and return them during the year. These funds can be spent on the following:
– Measures to improve the energy efficiency of buildings (insulation of facades, cellars, roofs, replacement of windows, doors, equipment, other measures).
– The development of renewable energy (RES) (for example, the installation of collectors for heating water or solar power stations).
Borrowers who received money from the fund, pay an administrative contribution immediately – 3% of the amount of the turn-around aid. After that initial amount they pay the loan in equal parts each month.
The initiator of the creation of a revolving fund, in the Klevan’s amalgamated community, deputy Oleksandr Besaraba says that he learned about this tool during Ecoclub’s May study tour on energy efficiency:
“After the trip, I submitted a deputy appeal, in which I asked for a creation of a revolving fund in our community. I asked because smart and efficient energy use is a key factor in economic growth. Given the current prices for utilities, low incomes, and huge rates of bank loans, not everyone can take energy conservation measures. We believe that thanks to the revolving fund, everyone will be able to obtain affordable credit for implementing various energy efficiency programs. ”
“The revolving fund, created in Klevan’s amalgamated community, is the first financial instrument to support energy efficiency and development of renewable energy sources in the private sector in the Rivne region,” – commented Dmytro Sakalyuk, an expert on the energy efficiency of Ecoclub. – “The use of loan funds, in addition to the benefits to residents, brings development to the whole community. After all, solar power plants lead to an increase in revenue to the local budget and increase the profits of citizens. This is not a theory. In Lyublynets’s amalgamated community, with which Ecoclub also created a fund this year, the solar power plants in one of the community has already been established”.
Increasing energy efficiency and developing renewable energy sources can reduce greenhouse gas emissions, which is a prerequisite for catastrophic climate change. Thanks to state support and decentralization, local communities can use the need for climate protection activities for their own development. Successfully introduced best practices, like a revolving fund, also make the community more attractive for investment.
The revolving fund in Klevan’s amalgamated community became the third revolving fund in Ukraine, created in cooperation with Ecoclub. Two others operate in the city of Slavuta, Khmelnytsky region (from 2015) and Lublynets amalgamated community, Volyn region (April, 2018). Ecoclub is looking for opportunities to expand cooperation with local government bodies that are interested in creating similar financial instruments.
Dmytro Sakalyuk, Expert on Ecoclub on Energy Efficiency,
Tel .: +380673634110,
Alexander Besaraba, deputy of the Klevansk amalgamated community,
Tel .: 098-128-28-63