WASHINGTON (dpa-AFX) - Ukraine's building stock has faced unprecedented challenges since Russia's full-scale invasion in 2022, with extensive destruction of critical infrastructure and the displacement of millions of people.
An estimated 13 percent of the total housing stock has been damaged or destroyed in more than three and a half year old Russian attacks, affecting more than 2.5 million households, according to a new report by the International Energy Agency. Reconstruction needs in the housing sector are the highest among all long-term priorities, which is estimated to cost nearly $84 billion. Estimates of the number of affected buildings range from 236 000 to 400 000, underscoring the enormous scale of the impact on the sector.
Amid the devastation, the priority is not simply to replace buildings as they once were, but to rebuild by putting energy efficiency at the heart of Ukraine's recovery, IEA says.
The building stock is the largest energy consumer in Ukraine, accounting for close to 40 percent of total final energy consumption.
Ukraine is an Association country of IEA, and the agency works closely with the Government on key energy sector challenges, including resilience and energy efficiency. The IEA's special report, Ukraine's Energy Security and the Coming Winter, provides an energy action plan to help the country navigate the critical months ahead, while the report on Empowering Ukraine Through a Decentralized Electricity System outlines a pathway to rebuild and modernize Ukraine's power sector. The IEA said it is supporting the Ministry for Development of Communities and Territories of Ukraine with analysis and policy recommendations to enhance energy efficiency in building reconstruction, aiding recovery and long-term resilience.
Donor backing is key for scaling up reconstruction efforts. In June, the EU and Germany added 18 million Euro to support the Energy Efficiency Fund's programs for homeowner associations and war-damaged buildings, while an EIB/EIF package of 600 million euro includes 100 million euro in municipal loans for decentralized heat, renewables and energy-efficiency in public buildings. Complementing these efforts, in 2024 the State Fund for Decarburization and Energy-Efficient Transformation was established and has since financed 36 projects, though mainly focused on construction of solar power plants rather than energy efficiency.
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