Green reconstruction of Ukraine’s heat sector

On 23 September 2022, the Low Carbon Ukraine project participated in an online event co-organized by Ecoclub Rivne and the German Energy Agency (dena) on “District heating in Ukraine – why it is essential and how to preserve it”. Rouven Stubbe, consultant in the Low Carbon Ukraine project, presented LCU’s proposals on “Policy reforms supporting Ukraine’s green reconstruction – Recommendations for the heat sector”.

Rouven Stubbe emphasised that, while there are strong 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.