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
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
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,
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
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:
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 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.
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.