The Cabinet approves a 35% target for cutting CO2 emissions by 2030

The Cabinet of Ministries has approved a decision to cut greenhouse gas emissions to 35% by 2030 (compared to the 1990 level) in the framework of the Paris Agreement, according to a twit by the Prime Minister, Denys Shmyhal, in his microblog.

“The Government approved Ukraine’s updated Nationally Determined Contribution (NDC) under the Paris Agreement. Through decarbonization and development of RES, we are going to reduce greenhouse gas emissions to 35% against the 1990 level. Ukraine is moving forward through joining the European Union and the U.S. in combating climate change,” wrote the Prime Minister.

According to the Minister of Environmental Protection and Natural Resources, Roman Abramovskyi, the NDC-2 incorporates current policies and strategic documents specified in the terms and conditions of the EU-Ukraine Association Agreement and the Energy Community Treaty and shows the effects of further systemic reforms on emissions reduction.

“Next we plan to reform the system of environmental finance and create the Ukrainian Climate Fund. Money that will come to the Fund will be spent exclusively for environmental protection measures and decarbonization,” the Minister added.

As reported earlier, at the end of the last year, representatives of the EU Member States agreed to cut greenhouse gas emissions in their territory by 55% by 2030 in the framework of the European Green Deal.

In its turn, the Ministry of Environment and Natural Resources of Ukraine proposed setting a 35% target for reducing greenhouse gas emissions by 2030, i.e. a 65% decrease from the 1990 level, whereas businesses estimate Ukraine’s potential for reducing greenhouse gas emissions at 40–45% by 2030. The European Business Association estimates Ukraine’s potential for reducing greenhouse gas emissions at 40–45% by 2030.

According to estimations of GMK Center, CBAM might apply to one third of Ukraine’s exports to the EU. In 2019, the value of the goods that Ukraine exported to the EU countries totaled €21.9 billion.

In general, a decline in exports in the mining & metals sector of Ukraine is estimated at €200 million per annum due to the imposition of CBA mechanism by the EU. The imposition of this safeguard measure may result in termination of exports of pig iron and a 10% decrease in exports of long products.