CO2 taxation in Ukraine

Key messages:

  • The revenues of taxing the CO2 content of fuels with 27 UAH/t CO2 are estimated between UAH 5.6 and 6.1 bln per year depending on draft law option for taxation (based on 2017 energy balance and fuel specific CO2 contents).
  • The highest price increase from taxation results for coal (between +3.5 and +4.3%). Effects on prices for transport fuels, electricity, natural gas and household district heating tariffs are estimated between +0.2 and +2.7%.
  • Depending on whether wholesale electricity prices (including CO2 tax) reach price caps, non fossil electricity producer on might make windfall profits.
Clemens Stiewe, Dr. Frank Meißner, Dr. Georg Zachmann

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