Climate Change Mitigation in Ukraine Through Energy Efficiency in Municipal District Heating (Pilot Project in Rivne) Stage 1

The proposed project addresses a key issue in the reduction of greenhouse gas emissions through large-scale improvements in energy efficiency in Ukraine's communal heat supply sector. These improvements will result from a four-part approach: 1) capacity building to create the basis for systematic energy efficiency activities at the local level; 2) an integrated approach of supply and demand-side improvements to achieve maximum fuel savings and emissions reduction; 3) attraction of external investment resources for an energy efficiency program in a pilot city; and, 4) project-specific replication measures including development of relevant procedures, guidelines, information materials and their dissemination, and public awareness-raising through the involvement of NGO's, in particular those concerned with environmental and energy efficiency problems. The project will involve establishing a privately-run energy service company (ESCO) as an innovative mechanism for financing energy efficiency activities in Ukraine at both municipal and regional levels