Old com­bined heat and pow­er sta­tions, obso­lete dis­trict heat­ing net­works and inad­e­quate­ly insu­lat­ed build­ings with inef­fi­cient heat­ing lead to high ener­gy con­sump­tion in many Ukrain­ian towns and cities – and con­se­quent­ly to high emis­sions and costs. The pilot project aims at trans­form­ing Sychiv, a dis­trict in Lviv, into a mod­el dis­trict for ener­gy effi­cien­cy. Apart­ment own­ers receive orga­ni­za­tion­al and tech­ni­cal advice to plan and car­ry out their ren­o­va­tion projects. In addi­tion to the nation­al sup­port from the Ukrain­ian Ener­gy Effi­cien­cy Fund, apart­ment own­ers in Sychiv, and in partcu­lar low-income house­holds, receive finan­cial incen­tives to ren­o­vate their build­ings. At the same time, the local heat sup­pli­er is sup­port­ed in adapt­ing its heat­ing net­works and heat gen­er­a­tion capac­i­ties to the reduced heat demand. Thus, for the first time in the Ukraine, an ener­gy-effi­cient dis­trict is being cre­at­ed, which is intend­ed to serve as a mod­el for oth­er cities in the region.