From Lviv to the Baltic Sea: Danish grant to Ukraine targets cleaner water

From Lviv to the Baltic Sea: Danish Grant to Ukraine Targets Cleaner Waters

At the Ukraine Recovery Conference (URC) in Rome, Denmark is taking centre stage in Ukraine’s green reconstruction with a major new investment through Impact Fund Denmark. A EUR 12 million grant from the fund will support the modernisation of Lviv’s wastewater treatment plant—part of a EUR 15.7 million Nordic-led initiative managed by Nefco, the Nordic Green Bank.

The project includes the construction of Ukraine’s first large-scale biogas facility and the implementation of an energy-efficient wastewater treatment process. These upgrades are expected to reduce phosphorus discharge by 69%, biological oxygen demand by 64%, and cut CO₂ emissions by 40%, equivalent to 12,000 tonnes annually.

“This project exemplifies how targeted investments in green infrastructure can deliver both humanitarian relief and long-term environmental impact. By supporting the modernisation of Lviv’s wastewater treatment and the development of Ukraine’s first large-scale biogas facility, we are helping to build local resilience while contributing to the health of the Baltic Sea. It’s a powerful demonstration of how public infrastructure finance can drive sustainable change across borders,” said Annemette Ditlevsen, Managing Director and Co-Head of Public Infrastructure Finance at Impact Fund Denmark.

“We’re pleased to deepen our cooperation with Lviv Vodokanal. Rehabilitating the treatment plant reduces discharges into the Poltva River – and ultimately into the Baltic Sea. As the only major city with a direct impact on the Baltic, Lviv is a key partner in protecting our shared marine environment,” said Bo Eske Nyhus, Investment Director from Nefco.

The city of Lviv, which now hosts a large number of internally displaced persons, is the only major Ukrainian city discharging into the Baltic Sea via the Poltva River. The project’s environmental benefits will therefore extend far beyond Ukraine’s borders, directly supporting Nordic efforts to restore the Baltic Sea’s fragile ecosystem.

“Vodokanal is the largest energy consumer in the city. This project is important to achieve energy resilience, not only for the company, but for the city as well. With this, Vodokanal will move from being an energy consumer to becoming an energy provider,” said Dmytro Vankovych, director Lvivvodokanal LCCE.

The total cost of the project is expected to be EUR 70 million.

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