Ukraine to seek funding for participating in the European Green Deal

Ukraine needs to develop a ‘roadmap’ and identify sources of funding with the European Union for successful participation in the European Green Deal.

This conclusion was made by the Acting Minister of Energy of Ukraine, Olga Buslavets,

according to Interfax-Ukraine.

“To effectively involve Ukraine in the European initiative, it is necessary to develop, in conjunction with the EU, a roadmap with regard to economic development priorities and the economic situation in Ukraine. The implementation of these measures requires additional investment, the volumes and sources of which have not been determined yet,” the Acting Minister underscored.

According to her, a special emphasis should be placed on the Carbon Border Adjustment mechanism, which may influence Ukraine’s export opportunities.

“It is necessary to assess potential effects of the implementation of this mechanism on the border with Ukraine, taking into account the domestic economic situation and compliance with the international commitments undertaken with the World Trade Organization, the European Energy Community and the EU-Ukraine Association Agreement,” Ms. Buslavets noted.

According to estimations of GMK Center, the launch of the Carbon Border Adjustment may cost Ukrainian exporters €566 million annually. For Ukrainian steelmaking companies, the figure will reach €379.9 million.

The CBA mechanism provides for the imposition of an environmental duty for imports of products into the EU, depending on the volume of CO₂ emissions in the process of their production. The mechanism is expected to be launched no later than 2023.

In mid-August, the Cabinet of Ministers of Ukraine, in cooperation with representatives of the business community, the public and experts, worked out preliminary proposals to create a joint EU-Ukraine roadmap for Ukraine’s participation in the European Green Deal. The proposals are to be enshrined at the EU-Ukraine summit in October.

The European Green Deal provides for a 40% cut in greenhouse gas emissions in the European Union by 2030 and zero greenhouse gas emissions by 2050. The European Commission is currently looking into the opportunity to toughen the requirement for cutting greenhouse gas emissions by 50% by 2030.

As reported earlier, Ukraine will press for an individual approach in the EU when forming a roadmap for the implementation of the European Green Deal. At the same time, the roadmap should be in line with Ukraine’s opportunities to implement the Green Deal.