Sweden is contributing $10 million to Moldova's Energy Vulnerability Reduction Fund, through an agreement with the United Nations Development Programme (UNDP). The funds will enable the Government of Moldova to offer on-bill compensations for at least 100,000 vulnerable households for the period November-December 2022.

“European economies, and in particular the Moldovan economy, are severely affected by Russia’s horrible and unproved aggression against Ukraine and the ongoing manipulation of energy supply. In Moldova people are struggling with increased costs of living that hits the most vulnerable people in the society the hardest. In this situation we all need to stand together to be resilient and get through the winter. Sweden will do its part to help vulnerable Moldovan households with rising energy bills. Sweden’s financial contribution of US$10 million is aiming to help those who are suffering the most from the current energy and economic crisis,” said Katarina Fried, Ambassador of Sweden to the Republic of Moldova.   

The Energy Vulnerability Reduction Fund was developed by the Government of Moldova, with the financial support of the European Union and of the Government of Slovakia. UNDP supported the creation of the fund, the development of the information system, the training of social workers, the creation and operation of the call centre, as well as the information campaign dedicated to the fund.

“We are extremely appreciative of the partnership and the significant contribution of Sweden to the Energy Vulnerability Reduction Fund. This extended support will contribute to alleviating the pressure on the vulnerable groups and reducing inequalities exacerbated by the compounded crisis Moldova is facing: security, energy, cost of living,” said Dima Al-Khatib, UNDP Resident Representative to the Republic of Moldova.

60% of Moldova’s population live in energy poverty, spending more than 10% of budgets on energy bills, according to a UNDP study on the impact of the rising costs of energy resources on the energy poverty of the population.

Based on a recent simulation exercise, UNDP estimates that the number of people living in poverty due to the impact of the war, including high inflation, could more than triple to about 35% of the total population. The consequences on the Moldovan population are far-reaching, with particularly adverse effects on already vulnerable and poor segments of the population. The Energy Vulnerability Reduction Fund is expected to positively mitigate this trend, supporting energy poor households through short-term compensations and longer-term energy efficiency and awareness-raising interventions.