Vice-President Fayolle: Advancing energy resilience and green recovery in Ukraine

Distinguished Colleagues, Ladies and Gentlemen,

It is pleasure to address you today at this important event, convened by our esteemed partner, the United Nations Development Programme, to advance the cause of Energy Resilience and Green Recovery in Ukraine.

Let me begin by expressing sincere gratitude to UNDP for bringing us together at this critical juncture. This gathering reflects our shared commitment to Ukraine’s recovery a resilient, green future.

Since the start of the Russian invasion, the European Investment Bank Group, which is the financial arm of the European Union, has provided €4 billion to Ukraine, repairing critical infrastructure, rebuilding schools, kindergartens, hospitals and securing the country’s energy supply.

Energy security lies at the heart of Ukraine’s recovery. Reliable electricity and heating are not luxuries – they are lifelines. They enable hospitals to save lives, schools to educate the next generation, businesses to rebuild and families to return home.

Yet today, over 60% of Ukraine’s generation capacity has been damaged or destroyed. The attacks on critical infrastructure persist, threatening the very fabric of daily life.

In response, the EIB Group launched the Ukraine Energy Rescue Plan in 2024, backed by the European Union’s Ukraine Facility: This strategic initiative bridges urgent wartime needs with long-term climate goals. Through this plan, we finance:

• The rehabilitation of critical infrastructure,
• The deployment of renewables,
• And investments in energy efficiency across sectors.

Last month, the EIB Board approved a €500 million package to bolster the country’s energy security and support affordable housing.

With the support of the European Commission, the EIB will back state-owned Ukrainian energy utility Naftogaz as an urgent measure to finance the replenishment of the country’s natural gas reserves ahead of winter and following extensive damage caused by Russian attacks, which was an exception to general policy of not financing gas.

The package shows our unwavering commitment and support to the country.

As part of its work for Ukraine’s energy transition, Naftogaz has pledged to reinvest an amount equivalent to the EIB loan in renewable energy and decarbonisation projects, with the EIB providing technical assistance to support the company's green transition.

Let me highlight another example: the €120 million contract with Ukrhydroenergo, the country’s largest hydro power company, will restore three major hydropower plants and reinforce grid stability. Thereby securing electricity for millions of Ukrainians.

In parallel, we are advancing a €250 million facility to support district heating and energy efficiency, helping municipalities deliver reliable heating while reducing energy consumption.

But let us be clear: financing alone is not enough. In Ukraine’s complex and challenging environment, success depends on transparent, efficient delivery and strong local ownership.

This is where our partnership with UNDP has been indispensable.

The results speak for themselves. Since 2017, EIB-UNDP cooperation has delivered over 120 recovery projects rebuilding hospitals, schools, heating systems and housing – across 170 communities, reaching more than 4 million people, including 460 000 displaced Ukrainians.

These are not just reconstruction projects. They are resilience projects. They are green recovery projects.

For example, we are restoring war damaged hospitals. Thanks to renewable heating and improved insulation, hospitals can operate year-round with lower energy costs, providing life-saving care to residents and displaced families alike. This is energy resilience in action.

Another flagship of our joint work is the Renewable Energy Solutions Programme, launched at COP28 with Germany, its development agency GIZ and UNDP. This initiative finances solar PV, heat pumps, biomass and storage systems for public buildings – while also building institutional capacity and technical expertise at the local level.

Excellencies, the lesson is clear: partnerships are the key.

Meeting Ukraine’s reconstruction needs requires not only scale, but the ability to build partnerships and translate commitments into results on the ground.

The EIB-UNDP model demonstrates how European institutions and UN partners can work hand in hand – leveraging strengths, avoiding duplication and maximising impact. It is a model that works in Ukraine and can be replicated wherever resilience and recovery must go hand in hand.

Ukraine’s energy recovery is not only a national imperative – it is a European priority. By investing in resilient and green energy systems today, we are protecting lives, stabilising the economy and strengthening Ukraine’s path to EU membership.

The European Investment Bank will continue to stand with Ukraine, in close partnership with the European Commission, UNDP and our international allies.

This week the EIB Group board of directors will discuss more supporting for emerging startups and local entrepreneurs in Ukraine, as well as energy infrastructure. In addition, we are finalising our new strategic orientation for outside EU activities, which is set to increase our activities in Ukraine even further.

Excellencies, together, we will ensure that recovery is not only fast and coordinated, but also sustainable and resilient.

Thank you.