Norway commits $200 million to greening Ukraine’s energy sector under new framework agreement with UNDP

July 10, 2025
Shipping container on a trailer inside a warehouse, with industrial surroundings.

One of a batch of gas-fired cogeneration units sits on a transport in Ukraine ahead of installation in December 2024. The units will strengthen Ukraine’s energy resilience.

Photo: UNDP in Ukraine

Rome, 10 July 2025 – The United Nations Development Programme (UNDP) and the Government of Norway have launched a comprehensive US$200 million initiative to transform Ukraine's war-damaged energy sector, targeting both immediate crisis response and long-term modernization in line with national priorities. This strategic partnership was announced during the Ukraine Recovery Conference on 10 July in Rome.

This new contribution builds on Norway’s substantial earlier support for Ukraine’s green energy recovery. The Government of Norway has previously provided $115.3 million through UNDP to deploy high-capacity cogeneration units and solar power systems across the country. These efforts have ensured more stable and sustainable energy access, especially in war-affected regions where infrastructure has been severely damaged.

Commenting on the new agreement with UNDP, Cecilie Myrseth, Norwegian Minister Trade, Industry and Fisheries said that Norway stands in unwavering solidarity with Ukraine, especially as its energy infrastructure faces relentless challenges. 

“Our $200 million contribution, facilitated through this framework agreement with UNDP, underscores Norway’s commitment to not only addressing immediate energy needs but also investing in Ukraine's long-term energy security and a sustainable, green future,” Myrseth said. “This is a vital step towards ensuring resilience and stability for the Ukrainian people.”

The new initiative will restore heating and water supply for millions of people, including vulnerable frontline populations, while equipping hospitals and water utilities with solar and backup battery systems to maintain life-saving services during outages. 

Beyond immediate relief, the agreement will bolster strategic initiatives aimed at fostering a green recovery and accelerating the shift to sustainable energy solutions. This includes scaling solar energy for critical social infrastructure like hospitals, schools, and kindergartens, enhancing energy efficiency in water supply and sewage, and implementing advanced energy storage solutions. The programme will also support strengthening sustainable and transparent regulatory frameworks and financially empowering women-led green energy projects.

Haoliang Xu, UNDP Acting Administrator, emphasized the strategic importance of the collaboration in supporting the people of Ukraine through sustainable energy support. 

“UNDP deeply appreciates the support that Norway has provided to UNDP’s Green Energy Recovery Programme,” Xu said. “It is providing Ukraine with critical energy solutions they need now, while laying the foundation for its green transition. With Norway’s commitment today, we can significantly scale up our support to the Government of Ukraine and help ensure reliable access to energy.”

Ukraine's energy sector has sustained $20.51 billion in direct war damage according to the Fourth Rapid Damage and Needs Assessment by the World Bank Group, Government of Ukraine, European Commission, and United Nations. With more than half of Ukraine's generation capacity destroyed by the ongoing full-scale war, the initiative will support Ukraine’s energy sector by providing vital energy equipment, ensuring that millions of Ukrainians across various cities and regions have access to the essential services they need. 

Ukrainian Minister of Energy German Galushchenko expressed the Ukrainian government’s gratitude for the support from Norway: “Ukraine’s energy sector has suffered massive destruction, and the need for strong international partnership is more essential than ever,” Galushchenko said. “This contribution from Norway, provided through the UNDP mechanism, is critically important to our ability to restore vital services, rebuild damaged infrastructure, and accelerate the strategic transition to a decentralized and environmentally clean energy system. We deeply value Norway’s unwavering support on our path toward energy independence and sustainable recovery.”

Background:

The UNDP Green Energy Recovery Programme in Ukraine – a multi-year, multi-donor initiative – focuses on two main priorities: providing urgent critical energy infrastructure and generation capacity, and accelerating the transition to green energy. It aims to mitigate immediate vulnerabilities and establish a sustainable energy future, enhancing energy security, independence, decarbonization, and alignment with EU energy markets. 

Media enquiries: 

Yuliia Samus, UNDP Ukraine Head of Communications and Advocacy. Email: yuliia.samus@undp.org