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 overcome to mobilise the necessary investments in low-carbon assets. Key policy reforms should include phasing out gas subsidies, tackling payment discipline, implementing tariff reform towards incentive-based regulation, harmonising district heating regulations, adequate carbon pricing, strengthened social transfers, and improved governance of state-owned enterprises.

Rouven Stubbe

What is a Policy Briefing?

Similar to Policy Papers, current or possible future policy topics are discussed. The economic analysis and policy recommendations are presented in a concise manner, focussing on the core arguments and results.