The introduction of the European Green Deal standards will accelerate the environmental modernization of the Ukrainian industry and its transition to green production technologies. In addition, domestic industrialists may get access to international financial resources.
This was stated in an interview with The Brussels Times by Metinvest Chief Executive Officer Yuriy Ryzhenkov.
“As far as I know, the process of harmonization of the Ukrainian legislation with EU regulations on ecology and climate is already underway. Ukraine has already shown a record reduction in CO2 emissions in Europe, and we intend to continue moving in the same direction. In addition, I believe that further actions of Ukraine to implement the European Green Deal will open Ukrainian companies an access to financial resources to accelerate the modernization and decarbonization of national industries,” he said.
However, to achieve zero emissions by 2050, Ukrainian industrial companies will need significant assistance.
Ukraine and its companies will need huge financial assistance to reach the zero rate by 2050. Unlike many companies in the EU that receive support from the European Commission for modernization and the transition to green technologies, Ukrainian companies have to finance their modernization projects on their own.
Yuriy Ryzhenkov, CEO of Metinvest
According to him, the decarbonization of the whole of Europe will require the efforts of each specific country, including Ukraine.
“At the same time, it is important to ensure that decarbonization does not lead to the deindustrialization of the EU and Ukraine in particular,” Metinvest CEO emphasized.
European Green Deal
It is worth reminding that in December 2019, the European Commission adopted the European Green Deal plan to achieve zero greenhouse gas emissions and zero environmental pollution in the European Union member-states by shifting from fossil to renewable energy sources and raw materials by 2050.
In the European Union, the investment plan for the “green transition” of industry amounts to 1 trillion euro during 2021-2030 in the form of concessional loans and subsidies. Moreover, the European Commission is going to allocate about 300 billion euros from the Coronavirus Relief Fund (the fund to combat the economic consequences of the impact of Coronavirus) specifically on the eco-modernization of industrial enterprises.
Under the European Green Deal, the European Commission intends to introduce a special “carbon” tax on importers that will not reduce CO2 emissions.
Decarbonization in Ukraine
In Ukraine, the only incentive for decarbonization of the steelmaking industry is the green steel rule, according to which enterprises that have cut their CO2 emissions down to the European target level will be able to apply for a small reduction in the electricity tariff.
However, such rule exists in theory only. Six months after the adoption of the relevant law, the incentive did not get rolling due to the inability of the Cabinet of Ministers to develop the necessary legislative instruments.