Old combined heat and power stations, obsolete district heating networks and improperly 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 Sykhiv, 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 Sykhiv, 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, an energy-efficient district is being created in Lviv, which is intended to serve as a model for other cities in the region.