The FEU calls on the government to set a more realistic climate target

The Federation of Employers of Ukraine (FEU) has called on the Ministry of Environmental Protection and Natural Resources to set a more realistic climate target – a 65.1% reduction in greenhouse gas emissions instead of the proposed 68–73% by 2035. This is stated in a statement by the federation.

In its appeal, the FEU emphasized that without specific funding, state support for business, and taking into account the devastating impact of the war on the country’s economy, reducing emissions is almost impossible.

The Federation of Employers supports the state’s European integration and environmental policy. However, ambitious commitments must be based on real economic conditions and appropriate instruments.

The FEU notes that the war is a key destabilizing factor for Ukrainian business. Industrial, energy, and agricultural facilities are under regular attack. According to estimates, more than 30% of the country’s territory is mined, which limits access to resources and hinders any transformations.

In addition, the federation points out that enterprises are losing their investment potential. Due to the constant threat of property destruction, it is almost impossible to attract funding for decarbonization or modernization projects.

Furthermore, the financial basis for the NBB2 project proposed by the Ministry of Environment is not assessed. In 2021, the ministry indicated that at least €102 billion in capital investment would be needed to achieve the 65% climate target. The nationally determined contribution currently proposed does not contain detailed financial estimates, even though the new target is even more ambitious.

Ukraine is only able to cover 5-10% of the needs for implementing climate goals.

“Attracting grant funds, preferential loans, and other financial support instruments from the EU should be a key factor in the successful implementation of climate goals in the medium term,” the federation emphasized.

The FEU notes that support from the state is critically important.

“Currently, there is a lack of effective mechanisms to stimulate the transition to a low-carbon economy, as well as institutional and legal instruments that would help Ukrainian businesses move in this direction even in the context of war,” the statement said.

The federation’s proposals are as follows:

1. set a more realistic target of a 65.1% reduction in greenhouse gas emissions from 1990 levels;
2. return to reviewing climate targets three years after the end of the war, when it will be possible to plan the transformation on a stable basis;
3. initiate the opening of access for Ukrainian enterprises to decarbonization financing mechanisms, in particular to EU funds, preferential loans, and grant programs.

The new climate target is set out in Ukraine’s Second Nationally Determined Contribution to the Paris Agreement (NDC2), which defines a new climate goal, published by the Ministry of Environment on June 11.

Ukrainian businesses continue to implement climate initiatives. However, representatives of the business community emphasize that the country’s current climate commitments require flexibility and adaptation to real conditions, according to the European Business Association.