Germany vows to support Ukraine's energy transition

Berlin has expressed its readiness to "establish a pillar" to support Ukraine's energy transition in order to reduce its dependence on Russian energy supplies and increase energy efficiency, according to a joint statement by the United States and Germany "On support for Ukraine, European energy security and our climate goals."

"As part of the U.S.-Germany Climate and Energy Partnership, we have decided to establish a pillar to support the energy transitions in emerging economies. This pillar will include a focus on supporting Ukraine and other countries in Central and Eastern Europe," the statement reads.

According to the document, these efforts will not only contribute to the fight against climate change but will support European energy security by reducing demand for Russian energy.

Among other things, Germany has committed to establish and administer a Green Fund for Ukraine "to support Ukraine's energy transition, energy efficiency, and energy security."

In addition, "Germany and the United States will endeavor to promote and support investments of at least $1 billion in the Green Fund for Ukraine, including from third parties such as private-sector entities." At the same time, Germany will provide an initial donation to the fund of at least $175 million and will work toward extending its commitments in the coming budget years.

According to the statement, the fund will promote the use of renewable energy; facilitate the development of hydrogen; increase energy efficiency; accelerate the transition from coal; and foster carbon neutrality.

"The United States plans to support the initiative via technical assistance and policy support consistent with the objectives of the fund, in addition to programs supporting market integration, regulatory reform, and renewables development in Ukraine's energy sector," the document reads.

In addition, Germany will continue to support bilateral energy projects with Ukraine, especially in the field of renewables and energy efficiency, as well as coal transition support, including the appointment of a special envoy with dedicated funding of $70 million.

Germany is also ready to launch a Ukraine Resilience Package to support Ukraine's energy security. This will include efforts to safeguard and increase the capacity for reverse flows of gas to Ukraine, with the aim of shielding Ukraine completely from potential future attempts by Russia to cut gas supplies to the country. It will also include technical assistance for Ukraine's integration into the European electricity grid, building on and in coordination with the ongoing work by the EU and the U.S. Agency for International Development. In addition, Germany will facilitate Ukraine’s inclusion in Germany's Cyber Capacity Building Facility, support efforts to reform Ukraine's energy sector, and assist with identifying options to modernize Ukraine's gas transmission systems.

The United States and Germany also expressed their strong support for the Three Seas Initiative and its efforts to strengthen infrastructure connectivity and energy security in Central and Eastern Europe. 

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