Ukraine Sustainable Construction

Sector outlook

Sustainable construction has significant potential for growth. The construction sector, which accounts for only 3% of the GDP (far below the world average of 13.4%), experienced an annual growth rate of around 25% over the past decade. Hard hit by the crisis in 2008-2009, it rapidly showed signs of recovery and registered a growth rate of 11.1% between 2010 and 2011. Even though construction is still dominated by local players, foreign investment in the sector has been increasing steadily over the past years: from EUR 400 million in 2005 to over EUR 2 billion in 2011.

Also affected by the 2009 crisis, the construction materials market has been revived by the realisation of various infrastructure projects, notably for the preparation of UEFA Euro 2012. Thanks to the strong presence of international companies and to the introduction of thermal insulation norms in the construction code, the energy efficiency segment is one of the most developed of the region and is expected to grow further, especially when the price of conventional construction materials like cement is rising.

Strategic direction/ Specific schemes and incentives

With a view to upgrading the quality of housing and utility services for all categories of population and to putting an end to subsidisation of the sector, the Ministry of Regional Development and Construction adopted the Housing and Utility System Reform (HUS Reform), which pursues the following objectives:

  • Increasing the profitability of housing and utility service providers;
  • Cutting down the average level of accounts payable and receivable in the sector;
  • Creating a competitive market for HUS services;
  • Encouraging technology upgrading and resource-efficiency in the housing and utilities sector.

Besides, several international initiatives were launched to encourage sustainable construction:

  • Ukrainian Green Building Council founded in 2012 with the following objectives: implementation of international standards, improvement of the legislation improvements, certification of green buildings, organisation of professional events, awareness raising, etc.
  • EU Awareness raising campaign on energy efficiency for construction related stakeholders;
  • USAID Project Municipal Heating Reform In Ukraine (2009-2013): pilot projects in 38 cities including municipal energy assessments and plans, implementation of energy efficient technologies and establishment of housing cooperatives;
  • UNDP “Municipal Governance and Sustainable Development Programme”: financial support to 294 projects of local infrastructure improvement for a total cost of about EUR 3 million; capacity building for municipalities; policy advocacy on housing reform, energy efficiency, solid waste management, e-governance, etc.

Business opportunities

  •  Construction of sandbag houses, one of the easiest and most inexpensive approach to 'green   building’;
  •  Production and distribution of insulation materials (perlite), training and expertise on insulation systems;
  •  Distribution of energy-efficient lighting systems and products;
  •  Installation of solar water heaters for off-the-grid buildings and water heating;
  •  Distribution of water efficiency and quality systems for both urban and rural areas;
  •  Installation of photovoltaic systems and green roofs.

 

Some success stories

Knauf (Germany), a multinational producer of building materials with plants in Kiev and Donezk, established Knauf Insulation Ukraine in Kyiv in 2006 and started distributing its thermal insulation products. In the light of the growing domestic demand for such products, Knauf plans to invest EUR 100 million in a plant in Fastiv (Kyiv region) with a capacity of 70,000 tonnes of thermal insulation materials per year. Knauf Insulation Ukraine is a founding member of the Ukrainian Green Building Council (UaGBC). In 2012, the company won the GREENOVATION award in the category of the best product for its project "Knauf Insulation mineral wool with ECOSE® Technology”.

Delta (Austria) is an international construction consultancy and architectural firm. In 2005, the company established Delta Projektconsult Ukraine in Kiev. Current activities of the company in Ukraine include the general planning of a high bay warehouse and factory reconstruction in Kiev, the construction management of a shopping center with office space in Kharkov etc. Delta Projektconsult Ukraine is a founding member of the Ukrainian Green Building Council (UaGBC).

Joachim Claes (Belgium), an expert in environmentally-sound building practices who is also a Vastu Director for the Global Country of World Peace, has completed several sandbag homes in Ukraine to accommodate the employees of its 50,000 hectare organic agriculture operations.

 
 
Useful links and contacts

Ukrainian Chamber of Commerce and Industry

Invest Ukraine

Ministry for Regional Development and Building

Union of Entrepreneurs of Small, Medium-Sized and Privatized Enterprises of Ukraine

European Business Association

This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of EUROCHAMBRES and can in no way be taken to reflect the views of the European Union.

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