The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a multi-donor fund set up in 2010 and managed by our Environment and Sustainability Department. The purpose of the fund is to facilitate investment in energy efficiency and environmental projects, to reduce GHG emissions and to promote policy dialogue and regulatory reforms in the E5P countries.
The E5P mainly provides investment grants to co-finance municipal sector loans provided by the EBRD and other participating international financial institutions (IFIs): the European Investment Bank, the International Finance Corporation, the Nordic Environment Finance Corporation, the Nordic Investment Bank and the World Bank.
The initial focus of the E5P has been Ukraine. Total pledges come close to €92 million, including funds from the EU (€40 million) as the largest contributor, the USA, Sweden and Ukraine. In 2013 the E5P contributors approved €15.5 million in grant funds for several new projects to improve energy efficiency in district heating and public buildings in the Ukrainian cities of Donetsk, Luhansk and Severodonetsk.
Based on the successful start of the initiative in Ukraine, the E5P secured an additional €60 million at a donor pledging conference held in Luxembourg in October 2013. This support will enable the partnership to expand into Armenia, Georgia and Moldova. Half of the funds were pledged by the EU and the Bank has begun to identify potential projects.