Green Construction in Ukraine

Ukraine has been rebuilding and will continue to despite the ongoing war and constant attacks. It has not only recovery plans, but also focuses on implementing the best green construction practices to ensure sustainable reconstruction.

Investors considering involvement in Ukraine’s rebuilding initiatives should be aware of the following key aspects of the local legal and regulatory landscape.

Evolving Legal Framework

National legislation does not give a comprehensive definition of “green construction” or define “Green Construction Law” as a separate area. However, Ukraine is actively aligning its legislation with EU standards, especially in the fields of energy efficiency and environmental protection. This means that regulations related to green construction are gradually becoming more important and may evolve further.

Ukraine has committed itself to align its legislation with key EU directives, such as the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED). This includes:

• establishing minimum energy performance requirements for new and existing buildings;
• implementing an energy performance certification system for buildings;
• promoting nearly zero-energy buildings (NZEB) standards;
• developing measures for the energy-efficient renovation of buildings.

The Law of Ukraine On Energy Efficiency of Buildings is a fundamental regulation in this area, setting out minimum energy performance requirements for new and renovated buildings and mandating energy efficiency certification. Investors should be aware of these standards and the certification process.

Strategic Environmental Assessment (SEA) and Environmental Impact Assessment (EIA) will be crucial in green recovery following the war.

SEA is governed by the Law of Ukraine On Strategic Environmental Assessment, which requires the evaluation of state planning documents, including urban planning documentation required for construction or changes in land use. The importance of SEA is particularly significant for communities that have experienced substantial losses and destruction due to hostilities. Conducting SEA of new urban planning documentation can facilitate a comprehensive approach to green reconstruction and restoration of these affected areas.

The Environmental Impact Assessment (EIA) is regulated by the Law of Ukraine On Environmental Impact Assessment. This Law stipulates that EIA is mandatory when making decisions about planned activities that may significantly impact the environment. The EIA focuses on the direct and local effects of a specific project or activity. Not all activities require an EIA, but only those that involve construction, reconstruction, technical re-equipment, expansion, conversion, dismantling of facilities, or any other actions that significantly affect the environment, as defined by the criteria established by the Cabinet of Ministers of Ukraine.

At the end of 2024, the Ministry of Environmental Protection and Natural Resources approved Methodological recommendations for taking into account the climate component in the implementation of the SEA and EIA. Although the recommendations are not binding, they are widely used as they take into account the requirements of Directive 2001/42/EU on the assessment of the effects of certain plans and programmes on the environment, as well as certain other EU regulations, including:

• Technical Guidance on the climate proofing of infrastructure in 2021-2027. European Commission, 2021
• Guidance on the preparation of the Environmental Impact Assessment Report. European Union, 2017
• IEMA Environmental Impact Assessment Guide to Climate Change Resilience and Adaptation, 2015
• Guidance on integrating climate change and biodiversity into environmental impact assessment, 2013

The Law of Ukraine On Waste Management is relevant for managing construction and demolition waste sustainably, emphasizing reuse and recycling. It is a framework law, while individual processes of the waste management cycle or the management of specific wastes (e.g., mining waste) should be regulated by separate laws and regulations. Most of the necessary regulations are not yet in place.

At the end of 2024, Ukraine approved the National Waste Management Plan for the period until 2033. This plan serves as a roadmap to shape the national waste management system as part of Ukraine’s integration into the European Union. The document includes the National program of reduction of biocidal disposal and the National Program for preventing waste. It also outlines the need for an inventory of hazardous waste treatment facilities and identifies those that must either be brought into compliance with the law or closed. Each region will have to develop its own regional waste management plans within a year. These plans will be developed for 10 years and updated every four years.

In April 2025, the development of the first cluster waste management concepts for the regions of Ukraine commenced. Depending on the specific needs of each region, the number of required separate household waste-collection points will be determined. Additionally, assessments will be made regarding the necessity for waste transfer stations, sorting lines, waste processing plants, regional landfills for household waste, and composting stations for organic waste.

Energy Efficiency Standards

New constructions and significant renovations must meet at least energy efficiency category “C” requirements. These regulations are technical and involve specific formulas for calculating energy performance indicators. It should also be noted that numerous exemptions from the above minimal requirement exist, so it does not cover all construction projects.

Although Ukraine aims to harmonize its key regulations with those of the EU, the current energy efficiency standards and the timeline for achieving higher levels of energy performance are different from the EU’s more stringent and unified approach. The concept of NZEB is still far from being widely implemented.

Ukraine has adopted a National Energy Efficiency Action Plan (NEEAP) till 2030, aligning with the EU Energy Efficiency Directive. This signals a long-term commitment to improving energy performance in all sectors, including construction. In particular, NEEAP provides for the reduction in energy consumption relative to the baseline by 22.3% (primary energy consumption) and 17.1% (final energy consumption). However, it is yet to be seen if this plan can be met in the context of the ongoing war and potential post-war recovery.

Green Building Certification

International green building certification systems like LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) are not mandatory but are gaining recognition in Ukraine, especially for commercial projects.

A green building certification can enhance a project’s marketability, attract environmentally conscious tenants or buyers, and offer long-term cost savings through reduced energy and water consumption.

Technical Regulations and National Standards

Ukraine is aligning its technical regulations and national standards in the construction sector with EU provisions, including those related to environmental performance and sustainability. These matters are covered in the numerous state building standards (in Ukrainian – ДБН), which are being revised and updated occasionally.

Renovations

Current Ukrainian regulations are largely focused on establishing standards for new constructions or reconstructions, but there is limited attention given to existing buildings. While energy efficiency improvements in the existing buildings are generally recognized as important, a large-scale, coordinated renovation initiative comparable to the EU’s “Renovation Wave” is still in its early stages. Future post-war reconstruction efforts may present an opportunity to integrate deeper renovation principles in Ukraine that are comparable to EU standards.

Green Public Procurement

Ukraine has very detailed regulations on public procurement and there are efforts being made to improve them, including in line with EU standards. At the same time, the Law of Ukraine On Public Procurement pays minimal attention to environmental aspects, leaving room for tender documentation to provide specific terms and conditions. Therefore, the concept of green public procurement has not yet, to a visible extent, been implemented in Ukraine.

Ukraine Recovery Expectations

Ukraine should have a great chance to make a major improvement to its green construction standards as it comes to post-war recovery.

At the same time, we cannot rule out a slowdown in Ukraine’s integration into EU standards due to the following key factors:

– High implementation costs and financial barriers are causing the state and market players to postpone green energy projects in favor of quicker and cheaper ones.

In particular, delays are currently expected in the implementation of:

• the Emissions Trading Directive (2003/87/EC) (based on Chapter 27)
• the Renewable Energy Directive (2009/28/EC) (in part on biofuels for transport)
• the Minimum Stocks Directive (2009/119/EC)
• the Energy Efficiency Directive (EU/2023/1791) (in part on heating and cooling supplies (Article 26), renovated public buildings, etc.)

– Lack of expertise and qualified personnel for design and construction works to be carried out in accordance with new standards (using appropriate materials and technologies).

– The need for fast, cheap construction is due to high demand and low solvency in the post-war period.

– The lack of construction materials and technologies in time and with adequate logistics costs.

Ukraine has already implemented many regulations and policies that facilitate basic green construction practices. However, considerable further efforts are required to develop the respective legislation and align current legislation with the best international standards. The anticipated post-war recovery is expected to boost such efforts, despite the challenges that exist.