The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a €243 million multi-donor and multi-implementing agency fund initiated during the Swedish Presidency of the European Union in 2009 to encourage municipal investments in energy efficiency and environmental projects in the Eastern Partnership region. Initially active in Ukraine, in 2014 the fund formally extended its activities to Armenia, Georgia and Moldova, Belarus in 2017, and Azerbaijan in 2019.

The E5P investment grants are blended with loans from the participating Implementing Agencies to address market barriers and support environmental projects with high developmental impact, traditionally in the municipal sector.

Hitherto, the Fund has focused on the municipal sector, supporting projects in district heating, solid waste management, water and wastewater treatment, energy efficiency in buildings (schools, kindergartens, hospitals as well as residential buildings), street lighting and urban transport. Additionally, projects in the infrastructure and energy sectors such as renewable energy generation (including biomass), interconnection and resource efficiency with public and private sector clients are potentially eligible.

Through its investments, the E5P aims to address multiple Sustainable Development Goals, from sustainable cities to clean water and sanitation to climate action and others. The E5P projects are expected to result in CO2 savings equivalent to almost 1 million tonnes as well as multiple other benefits in terms of urban air pollution reduction, waste and waste water reduction.

- Reduce CO2 emissions and other harmful greenhouse gases.
- Improve energy efficiency.
- Provide support to policy dialogue and regulatory reform.