The government should finalize the draft law on industrial pollution control

The National Association of Extractive Industries of Ukraine appeals to the members of the Verkhovna Rada to finalize the draft law No. 11355 «On Integrated Prevention and Control of Industrial Pollution», taking into account the critical comments of the industry and the current economic situation in the country.

On June 20, 2024, the Verkhovna Rada adopted in the first reading the draft law No. 11355, which aims to implement the provisions of Directive 2010/75/EU on industrial emissions into Ukrainian legislation.

The main idea of the document is to introduce an integrated permit that will set specific environmental standards for emissions and waste for enterprises. The draft law also provides for the definition of the main requirements for an integrated permit, the list of activities that require it, the procedure for issuing it, the grounds and procedure for revoking the permit, as well as the requirements for the mandatory use of the best available technologies and management methods.

However, extractive industry companies emphasize that the maximum period of 7 years for the transition to new environmental standards is insufficient. The draft law does not take into account the real economic situation in Ukraine, which has been severely affected by the war.

For example, companies in the mining and metals sector have suffered significant losses, and the lack of government support for environmental modernization only complicates the situation.

In contrast, in the EU, the process of adapting to new environmental standards took about 30 years with significant government support.

European companies received at least €803.5 billion in state aid from EU structural funds in 2000-2022, of which almost €200 billion was allocated in 2021-2022 alone.

Market participants call on members of the Verkhovna Rada to take into account the following factors when finalizing the draft law:

1. The war in Ukraine. The war has a significant impact on the operations of steel enterprises, creating additional risks for their activities, including the threat of physical destruction or seizure of production facilities.
2. European business support system. The EU countries have a well-developed business support system in the form of multibillion-dollar grants for environmental modernization, which has allowed European companies to successfully adapt to new environmental standards.
3. EU experience. Achieving the current level of air pollutant emissions in the EU was preceded by almost 30 years of modernization projects, many of which were funded by the state. EU member states’ businesses have not faced challenges of the scale of military operations, which significantly affect economic stability and development.

In view of the above, the Association of Extractive Industries calls for the revision of the draft law No. 11355, taking into account the comments of industry representatives and other enterprises, to ensure its compliance with the real conditions of enterprises and to facilitate their development in wartime.