Oschadbank and the international initiative SMARTER4EU signed a memorandum on the launch of the Green Housing and Green Mortgage program

Oschadbank and the international initiative SMARTER Finance for EU – European Centre of Excellence have announced a strategic partnership and signed a memorandum of understanding on the launch of the Green Housing and Green Mortgage program. This cooperation will enable the launch of the first green mortgage products in Ukraine as early as 2026.

As part of the partnership, Oschadbank and SMARTER4EU will work on creating green mortgage products based on European Union practices. The initiative focuses on buildings that consume 30-50% less energy, have predictable maintenance costs, and meet the green criteria defined by the European taxonomy (classification). The initiative has the potential to change approaches to managing Ukraine's housing stock and, at the same time, reduce the energy vulnerability of households during the war.

“Oschadbank is one of the key players in the Ukrainian financial system, systematically implementing ESG criteria. The memorandum marks the beginning of Ukraine's transition from the concept of ”affordable housing“ to the concept of ”affordable, environmentally friendly housing." Green standards and energy efficiency are no longer privileges. They are becoming the norm," notes Anton Tiutiun, Deputy Chairman of the Board of Oschadbank, responsible for retail business.

"In Ukraine, where energy security has become a critical issue, this project is logical and strategically sound. Why is it important right now? The post-war reconstruction of Ukraine is an opportunity to make the country more environmentally friendly, and therefore the decisions taken today in this area will determine the quality of life for future generations. Green mortgages are an investment in the sustainability of households, the economy, and the country's energy independence," comments Steven Bornkamp, SMARTER4EU advisor.

Soon, the teams of Oschadbank and SMARTER4E – ECoE will begin a series of technical sessions, discussions, and evaluations of the first projects that may be included in the new program.

The memorandum with SMARTER4EU deepens the integration of sustainable development principles, which is being implemented as part of Oschadbank's Strategic Program for 2024-2028. In cooperation with international partners, the bank is forming a new architecture for affordable green housing financing.

For reference:

SMARTER4EU is an international initiative that supports the development of green financing programs for sustainable housing in EU countries and candidate countries, including Ukraine. The memorandum sets out a plan for the development of financial instruments for affordable housing loans that meet high standards of housing construction and relevant energy and environmental criteria.