Pathways for the decarbonisation of Ukraine’s power sector. Scenario comparison, impact of CBAM and the role of Ukraine’s upcoming Emissions Trading System (ETS)

The Policy Briefing “Pathways for the decarbonisation of Ukraine’s power sector. Scenario comparison, impact of CBAM and the role of Ukraine’s upcoming Emissions Trading System (ETS)” outlines possible pathways for the decarbonisation of Ukraine’s power sector. Different scenarios based on work by Low Carbon Ukraine and modelling by other recent studies outlining net-zero pathways for

Exemption of electricity exports from EU-CBAM. Conditions for exemption and assessment for Ukraine

This Policy Briefing accompanies the Policy Paper“Exemption of electricity exports from EU-CBAM. Conditions for exemption and assessment for Ukraine”. It examines Ukraine’s alignment with the EU’s Carbon Border Adjustment Mechanism (CBAM) conditions for exempting its electricity exports. Enacted in October 2023, the CBAM mandates importers of specific goods, including electricity, to account and pay for

Designing a suitable Emissions Trading System for Ukraine

This Policy Briefing accompanies and summarises the Policy Proposal “Designing a Suitable Emissions Trading System for Ukraine: Squaring EU Convergence, Price Certainty, and Competitiveness”. It advocates for a tailored Ukrainian Emissions Trading System (ETS) to balance EU integration, economic stability, and competitiveness. We recommend implementing a strong price stability mechanism, such as a fixed-price regime

Exemption of electricity exports from EU-CBAM

This Policy Paper examines Ukraine’s alignment with the EU’s Carbon Border Adjustment Mechanism (CBAM) conditions for exempting its electricity exports. Enacted in October 2023, the CBAM mandates importers of specific goods, including electricity, to account and pay for embedded greenhouse gas (GHG) emissions, with full implementation set for 2026. Ukraine faces a series of stringent

Designing a suitable Emissions Trading System for Ukraine

The Policy Proposal “Designing a Suitable Emissions Trading System for Ukraine: Squaring EU Convergence, Price Certainty, and Competitiveness” explores the complex task of aligning Ukraine’s climate policies with the European Union amidst the ongoing Russian invasion. It advocates for a tailored Ukrainian Emissions Trading System (ETS) to balance EU integration, economic stability, and competitiveness. The

Existing and past energy & climate-related financing for EU member-states, candidate, and neighbourhood countries

The European Union (EU) provides substantial financial support through loans and grants to its members, candidate countries, and those within its neighbourhood policy framework, with a growing emphasis on energy and climate initiatives. Ukraine’s new status as a candidate country might provide access to additional funds such as the Instrument for Pre-Accession (IPA). Nevertheless, facing

Law of Ukraine “On Amendments to Certain Laws of Ukraine Regarding the Restoration and Green Transformation of the Energy System of Ukraine” n° 9011-d: Assessing the economics of prosumer provisions for residential rooftop PV

The increased roll-out of small-scale renewable energy sources and enabling the rise of prosumers are two of the key steps for Ukraine to the transition to a more decentralised energy system. Given the recent adoption of a net billing support scheme, this policy evaluation assesses the costs, revenues and payback periods for the installation of

Keeping the lights on in times of grid outages. Solar PV panels, battery storage systems and diesel generators

Summary: Russia’s attacks on Ukraine’s energy infrastructure have caused significant electricity disruptions and outages. This policy briefing compares the economic case for installing solar PV panels, battery storage systems and diesel generators at a sample Ukrainian school. Through techno-economic modelling, the paper finds that under current conditions and a variety of tested scenarios, it is

Policy reforms supporting Ukraine’s green reconstruction. Keynote presentation for the panel discussion on October 19th, 2022

This Policy Briefing is a short version of LCU’s Policy Proposal “Policy reforms supporting Ukraine’s green reconstruction”, prepared as the keynote presentation to a panel discussion on October 19, jointly organised by the Low Carbon Ukraine team, Ecoaction, and DiXi Group. While there are important economic reasons for a green reconstruction of Ukraine’s electricity, heat,

Policy reforms supporting Ukraine’s green reconstruction – Recommendations for the heat sector

This policy briefing is based on LCU’s Policy Proposal “Policy reforms supporting Ukraine’s green reconstruction” and looks specifically at recommendations for policy reforms in Ukraine’s heat sector with a focus on district heat. While there are important economic reasons for a green reconstruction of Ukraine’s heat sector, substantial regulatory obstacles and disincentives need to be

Policy reforms supporting Ukraine’s green reconstruction

The post-war reconstruction of Ukraine will require massive investments in rebuilding her energy infrastructure. To ensure the country’s future competitiveness in a progressively decarbonising global economy, it is paramount to “build back better”. This paper outlines major challenges and regulatory obstacles to mobilising investments into low- or zero-carbon assets for the electricity, gas and district

Impact of the war in Ukraine on countries in Central Asia and Eastern Europe: Low Carbon Ukraine study for the OECD Green Action Task Force

A policy briefing has also been prepared on the basis of the policy paper: For the annual meeting of the OECD’S Green Action Task Force, we contributed a background study analysing the impact of the war in Ukraine on climate and energy policies in eight countries of the European Union’s Eastern Partnership and Central Asia:

Impact of the war in Ukraine on countries in Central Asia and Eastern Europe: LCU study for the OECD Green Action Task Force

For the annual meeting of the OECD’S Green Action Task Force, we contributed a background study analysing the impact of the war in Ukraine on climate and energy policies in eight countries of the European Union’s Eastern Partnership and Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, and Uzbekistan. We find that: Globally, countries

Putting the green reconstruction of Ukraine into action: Requirements for programme design and policy

Low Carbon Ukraine, together with Centre for Environmental Initiatives “Ecoaction” and CEE Bankwatch, have organised a roundtable conference on May 31st. This roundtable brought together over 60 representatives from civil society and industry, as well as national and international experts, to discuss what green reconstruction means concretely in every sector, what barriers to a green

Economic reasons for a green reconstruction programme for Ukraine

Ukraine faces massive reconstruction needs in the aftermath of the Russian invasion. A reconstruction programme should be focussed on low-carbon technologies taking into account the cost reduction of green technologies, Ukraine’s climate policy obligations and EU accession perspective, elevated global fossil energy prices and price volatility, as well as energy independence from Russia.

Ukraine’s power plant park: Optimal configuration in 2032 and investment needs in the transition phase

Ukraine’s electricity sector will play a salient role in decarbonising the economy. A cost-optimal configuration of the power plant park in 2032 implies a complete replacement of coal-fired power generation by renewables and gas turbines. In the transition phase, around EUR 1.5 bn per year will be necessary to finance those new generation technologies.

Investment needs for reaching the 2030 NDC targets: An explanatory note

Ukraine needs €47bn of additional investments to reach 2NDC emission targets. The €102bn figure often mentioned includes €55bn of regular investment unrelated to NDC. Ukraine’s investment need still is high, but not as high as often mentioned. Additionally, efforts must be undertaken to re-channel some of the €55bn into “green” projects. A carbon price would be a crucial instrument to achieve this.

Ukrenergo Adequacy Report – Evaluation of power plant park scenarios for 2032

In this Policy Evaluation, we aim to evaluate and compare Ukrenergo’s Adequacy Report with LCU calculations in terms of scenario building, carbon emissions, expansion of renewables and flexibility options for the electricity system by the year 2032. LCU and Ukrenergo envisage a similar development of the electricity system in the coming years. While the share

Implementing the National Emissions Reduction Plan (NERP): How should Ukraine’s power plant park look like in 2033?

Ukraine risks significantly falling behind on implementing the National Emission Reduction Plan (NERP), a binding obligation towards the Energy Community (EnC). A debate about a possible revision of the NERP has started in Ukraine but so far focuses on relaxing the requirements of the NERP, including the deadlines already extended especially for Ukraine.