Ukraine Paris Agreement

The revision of Ukraine`s national contribution to the Paris Agreement is supported by financial institutions and international funds – the World Bank, the EBRD, AIDS. Experts from the Economic and Prognostication Institute of the Ukrainian National Academy of Sciences and the Ukrainian Heinrich Bӧll Fund prove with their research that Ukraine needs all the technical and economic capacities to reach 91% renewable energy in all energy sectors by 2050. Today, the nuclear agreement between the NDC and the Paris climate agreement promises Ukraine to reduce greenhouse gas emissions by 60% compared to 1990. Ukraine was the first country to present the low-carbon development strategy in 2050, as proposed by the Paris Agreement. This strategy shows a 31-34% reduction in emissions compared to 1990. The Ukrainian climate network expects the new contribution to be as important as the objective set out in the strategy. Concerned about the financial viability of the existing aid regime, legislation was signed in May 2019 to introduce a new system based on competitive capacity auctions for renewable energy (Mykhailenko et al., 2019); Savitsky, 2018). However, it is not yet known when the first auctions will take place (Mitsovych et al., 2020). Investors could still secure the “green tariff” if their projects have obtained land use rights, a grid connection contract, a building permit and an electricity purchase contract (AAE) by December 31, 2019 (KPMG Ukraine, 2019). The tariff has been very successful and, in 2019 alone, domestic energy companies, foreign and Ukrainian investors have contributed $4.5 billion to the construction of wind and solar power plants to take advantage of the generous tariff (Prokip, 2020). However, the government had planned to buy only about half of the renewable energy that businesses could produce this year, and from March 2020, the government froze payments and attempted to retroactively reduce “green tariffs,” resulting in significant losses for businesses, jeopardizing the entire renewable energy sector (Kossov, 2020); Prokip, 2020). Ukraine has stated that it will actively participate in current and future mechanisms of the international market, but its current target of reducing emissions does not take these market mechanisms into account. In reviewing its NDCs, Ukraine should explain its accounting intentions for both UTCATF and international market mechanisms, which would improve the transparency of its objective and allow for clearer comparisons with other NDCs.

The importance of energy efficiency and renewable energy sources to Ukrainians is an example of the Ukrainian National Agency for Energy Savings and Energy Efficiency`s “Warm Credit” programme. Funds to support energy-saving measures were used by the country`s residents during the first three months of the programme. We expect That by 2020 Ukraine`s greenhouse gas emissions will be 6% lower than in 2019: before COVID-19, they are expected to increase by 5%. Reduced passenger mobility, reduced energy demand and production, and a slowdown in industrial production due to the COVID 19 pandemic, are leading to this projected reduction in emissions. Download the report on the assessment of technology needs – reduction here. Ukraine and the Technology Needs Assessment (TNA) project have published a new report in which climate change mitigation technologies are a priority. Illya Yeremenko, head of Ukraine`s climate network, is involved in the climate negotiations and comments on the minister`s speech: With regard to measures related to electricity markets, Ukraine opened its wholesale electricity market in July 2019. Market regulations continue to adjust the financial flows of the system and require large energy companies to provide the guaranteed buyer (UK) with more electricity at low prices, so that Go can use higher profits to finance the cost of renewable energy from the transport tariff (Mykhailenko – Temel, 2019).