The law on industrial pollution will hit Ukrainian enterprises – FEU

The Law on Industrial Pollution is a ticking time bomb for Ukrainian industry. This opinion was expressed by Dmytro Oliynyk, Chairman of the Council of the Federation of Employers of Ukraine (FEU).

On July 16 this year, the Verkhovna Rada adopted the draft law No. 11355 “On Integrated Prevention and Control of Industrial Pollution”. It should ensure the fulfillment of Ukraine’s European integration obligations in terms of implementing Directive 2010/75/EU and the transition to integrated permitting and emission standards in accordance with BAT (best available technology).

According to Dmytro Oliynyk, the law could be fully supported by business and local communities. However, MPs have provided much less time for the environmental modernization of Ukrainian industry than even the EU has. First of all, this refers to Part 5 of Article 29 of the new law, according to which operators of facilities intending to decommission the facility may do so within a period that may not exceed 10 years from the date of entry into force of this law.

Thus, the FEU President emphasizes, in fact, businesses are currently being offered to undertake to completely rebuild their enterprises or close them down in 10 years in the face of war, general uncertainty and lack of funding.

“At the same time, apart from slogans and framework norms, the draft law has no specifics at all. It is unclear where, under what conditions and when Ukrainian business will be able to access financing, for example, in the form of loans, state support or grants necessary for the construction of new modern facilities,” says Dmytro Oliynyk.

He adds that it is unclear how to carry out this construction during the war, electricity shortages and its high cost, as well as security risks for production sites.

Dmytro Oliynyk reminds that more than 14 years have passed since the relevant EU directive came into force, and there are still plants in Europe that receive derogations and continue to operate under outdated emission standards (not BAT). At the same time, European industrialists receive government support and preferential financing for large-scale modernization.

Large business associations, he notes, have repeatedly appealed to the Verkhovna Rada Environmental Committee to extend the term of such a special permit to at least 15 years, but to no avail. As a result, instead of a consensus, we got a “nail in the coffin” for a significant number of large industrial enterprises (coke plants, machine building, energy, cement and chemical industries) that have been under direct threat of total closure in 10 years. Most of them are located in the east and center of Ukraine, in the frontline areas.

Instead of focusing on supporting Ukrainian industry, creating and preserving jobs in Ukraine, Dmytro Oliynyk summarizes, the Environmental Committee and those who supported the draft law during the voting have planted a time bomb. The lawmakers have actually put a large number of local communities in uncertainty, for which large industry is often the city-forming industry.

As GMK Center reported earlier, the draft law No. 11355 on industrial pollution reform needs to be improved, and the lack of adjustments in the document threatens to pose a high systemic risk to industry. This opinion was expressed by Liudmyla Tsyhanok, President of the Association of Environmental Professionals (PAEW), after the draft law was approved as a basis.