Will the 2024 Ukraine Recovery Conference mark a turning point for municipalities?

Municipalities take centre stage 

This year’s conference marked a significant milestone for Ukrainian municipalities. Attended by over 200 representatives of local and regional authorities as well as municipal associations, the event provided participants with a platform to network with potential donors and partners, share experiences in addressing recovery challenges, deliver presentations, and participate in panel discussions.  

Discussions focused on crucial aspects of Ukraine’s recovery, such as ensuring the fair distribution of financial resources, building capacity at the local level, and forging partnerships to aid recovery efforts. Transparency, accountability, and building the trust of citizens were among the main themes, demonstrating commitment to a holistic approach to the national rebuild.  

Significantly, the European Union (EU) and the European Bank for Reconstruction and Development (EBRD) signed a number of key agreements totalling EUR 517 million, the culmination of extensive preparatory work between multiple partners, including Ukrainian municipalities. Supported by EU investment grants, the EBRD also signed municipal lending agreements with the cities of Lutsk and Mykolaiv and a pre-financing municipal lending agreement with Kharkiv. 

Under the new agreements, the EU will provide financial support for the EBRD’s four Ukraine recovery programmes, which aim to foster the competitiveness and inclusion of small and medium-sized enterprises, introduce innovative green technologies, restore financial inclusion, and strengthen municipal, infrastructure and industrial resilience.  

Mobilising efforts to support local recovery 

Adding to the momentum of the conference, Ukraine’s international partners launched the Coalition for Sustainable Municipalities. This landmark initiative is intended to support Ukrainian municipalities in their efforts to bring about a green and sustainable recovery. 

The principles of the Coalition, informed by research carried out by Bankwatch and Ecoaction on the role of municipalities in rebuilding Ukraine, include strengthening the role of self-government, developing the capacities of municipalities, coordinating efforts to promote community access to financial resources, building human capital, establishing municipal partnerships, and recognising the contributions of civil society, local businesses, and international partner municipalities 

During the conference, members of the Coalition committed to mobilise almost EUR 2 billion to support initiatives rooted in these principles, such as strengthening the financial resources of municipalities, building capacity, and developing partnerships. 

Energy resilience in action 

One of the most pressing cross-cutting issues to emerge from the panel discussions, side events, and backstage conversations at URC2024 was Ukraine’s energy resilience and preparedness for the coming winter. This urgency has been understandably fuelled by Russia’s devastating missile attacks on Ukraine’s energy system, crippling half of its total generating capacity.  

Since the beginning of the full-scale invasion, Ukrainian municipalities have increased their efforts to implement sustainable energy solutions capable of sustaining critical infrastructure, hospitals, and water pumping stations. The city of Zhytomyr in northwestern Ukraine is a shining example of this proactive approach. Through forward thinking and long–term planning, the city has successfully converted its infrastructure to run on sustainable energy sources. As a result, the city’s residents are now largely immune to the power outages affecting many other parts of the country. 

Civil society steps up 

Leading civil society organisations, including Ecoclub, Ecoaction, Razom We Stand, the Energy Act for Ukraine Foundation, Greenpeace, the RePower Ukraine Charitable Foundation, and Bankwatch released a joint statement calling on the international community to support the energy resilience of municipalities through grants and low-interest loans.  

They emphasised the importance of giving municipalities direct access to funding provided by international financial institutions, implementing capacity-building programmes focused on renewable energy and energy efficiency, and promoting active public participation in the development and execution of reconstruction projects.  

A missed opportunity for green recovery? 

Despite the large-scale nature of the event, there was no thematic dimension dedicated to the green recovery. Nevertheless, the representation of participants from the civil society sector, especially those involved in the green restoration, was significant and possibly the largest turnout at the event to date. 

During the EU, business, and local dimensions, panellists stressed the significance of healthy ecosystems in delivering essential services to people and the urgency of addressing environmental issues. Virginius Sinkevičius, EU Commissioner for the Environment, Oceans and Fisheries, underlined the strategic importance of environmental impact assessments and the principle of ‘do no significant harm’. Oleksii Sobolev, Deputy Minister of Economy for Digital Development, Digital Transformations and Digitalization of Ukraine, announced that the 2030 National Energy and Climate Plan would be finalised within the next 12 months. And at the Recovery Forum, members of civil society shared their experiences in supporting community energy and the introduction of renewable energy sources.  

The conference was also notable for the launch of the Platform for Action on the Green Recovery of Ukraine, a joint initiative of the United Nations Economic Commission for Europe (UNECE), the United Nations Environment Programme (UNEP), the Organisation for Economic Cooperation and Development (OECD), and the Ukrainian government. The platform aims to create opportunities for stakeholders to exchange information and expert knowledge on the green recovery. Steffi Lemke, Germany’s federal environment minister, announced that the German government would be committing EUR 5 million to support the platform. 

In our view, highlighting the environmental risks of development at high-profile events such as URC2024 is crucial. While Ukraine’s European partners may assume all development aligns with the principles of the European Green Deal, the Ukrainian government has yet to fully embrace this approach. 

On a positive note, the European Commission’s announcement that EU accession negotiations with Ukraine are due to begin offers hope that domestic legislation will more actively adapt to EU environmental standards. 

The path to URC2025 

The success of URC2024 begs the question: How can we build upon this momentum for future conferences of similar scope? While the situation in Ukraine is bound to change by the time Italy hosts the next conference in 2025, the challenge of rebuilding the country during wartime will remain immense. 

Looking ahead to next year’s event, the Italian government should build upon the inclusivity of the Berlin conference by providing even more opportunities for municipalities and civil society to engage in open dialogue, build partnerships, and contribute to discussions at the highest level.  

Finally, we strongly urge the organisers of URC2025 to add a sustainability dimension, expanding upon the social and local dimensions addressed this year. Going forward, this is a crucial step in prioritising the environmental aspects of Ukraine’s recovery.  

For those who missed URC2024 in person, the event stream recordings are available here.