RECOMMENDATIONS of Committee Hearings on "EUROPEAN GREEN DEAL"

13 жовтня 2020, 13:08


The participants of the committee hearings on "EUROPEAN GREEN DEAL", which took place on 11 September 2020, after considering the issues regarding the dialogue between Ukraine and the EU on the European Green Deal, note the following.

Climate change and its consequences are becoming increasingly pressing issues which demand attention from the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, line ministries and other public authorities. The European Union is one of the leaders in decarbonisation and combating climate change.

The European Green Deal (the EGD) adopted in December 2019 is the EU's economic development programme that aims to transform Europe into a climate-neutral continent and make the EU a technology leader by minimising the use of fossil fuels and reducing negative impact on the environment by 2050.

In addition, Ukraine should continue to be active and make every effort to decarbonise its economy in the framework of the Paris Agreement, the 2030 UN Sustainable Development Goals, and Association Agreement with the EU.

To effectively address these issues, the participants of the committee hearings on "EUROPEAN GREEN DEAL" recommend to:

  Verkhovna Rada of Ukraine:

  •     to recommend to the committees of the Verkhovna Rada of Ukraine to pay special attention to taking into account the issues of climate change and CO2 emissions reduction when drafting the legislation at all stages of the legislative process;
  •     to take measures to expedite consideration by the committees of the Verkhovna Rada of Ukraine of the draft laws aiming to implement the transport and environmental component of the Association Agreement;
  •     to consider urgently the draft laws On Energy Efficiency and On Amendments to Some Laws of Ukraine Regarding Removing the Barriers to Large-Scale Thermal Modernisation of Buildings;
  •     when adopting the Law of Ukraine On the State Budget for 2021, to support the proposal of the Ministry of Communities and Territories Development of Ukraine to allocate the necessary funding for the following budget programmes: ECCPC (Expenditure and Crediting Classification Programme Code) 2751290 "Functioning of the Energy Efficiency Fund" to fulfil international commitments of Ukraine to the EU and partner states; ECCPC 2751030 "Scientific and scientific and technical activities in the field of construction, housing policy, housing and utility services and regional development, research on conservation and study of flora species in specially created conditions" with a view to updating the regulatory framework in the construction sector harmonized with European standards, particularly in terms of sustainable use of natural resources in construction;
  •     to recommend to the Verkhovna Rada Committee on Transport and Infrastructure to hold a discussion on the draft law On Inland Water Transport (registration No. 1182-1-d dated 17 January 2020), involving the heads of regional state administrations, business representatives, and the EU representatives.

Cabinet of Ministers of Ukraine:


  •     to instruct the Interagency working group on reducing the consequences of climate change as part of the European Commission’s initiative "European Green Deal" to look into initiating a separate dialogue with the EU regarding the opportunities for Ukrainian Party’s early involvement in the development and implementation of the policies in the EGD framework.
  •     to develop a Road Map (jointly with the EU) for Ukraine’s participation in the EGD:
-     the process of Road Map development should engage representatives of the relevant Committees of the Verkhovna Rada of Ukraine: Committee on Ukraine’s Integration into the European Union; Committee on Environmental Policy and Nature Management; Committee on Energy, Housing and Utilities Services; Committee on Transport and Infrastructure; Committee on Economic Development

-    there is a need to engage in the development of the Road Map the expert community (research institutions, civil society, sectoral associations, business etc.) in the field of environment, climate, energy, industry, agriculture, just transition and energy efficiency;

-    the Road Map should indicate the sources of funding for its implementation, provide cost estimates, and contain the amounts of investments and, where relevant, the conditions for such investments for each specific item for its implementation;

-       engagement in discussions within the framework of the United Nations Economic Commission for Europe regarding framework preconditions for achieving carbon neutrality by 2050[1], which will include modelling based on the available technologies, in particular carbon capture, utilisation and storage (CCUS), and coordination with Ukraine's actions aimed at fulfilling its commitments under the Paris Agreement;

-       finalisation of the following strategic documents: Integrated Energy and Climate Plan, second nationally determined contribution in line with the Paris Agreement, National Climate Change Adaptation Strategy, State Forestry Management Strategy until 2035;

-       the following draft laws should be adopted: Law on Emerald Network Areas, Law on Amending Some Laws of Ukraine (Regarding the Implementation of Provisions of Certain International Treaties and the EU Directives on Wild Fauna and Flora Protection) (registration No. 2351 dd. 30 Oct. 2019).

  •     to contact the European Party in an effort to establish a dialogue on a potential scheme for making carbon-related adjustments to imports of certain goods (NACE[2] classification) exported from Ukraine to the European Union, taking into consideration the EU-Ukraine Association Agreement, Energy Community Treaty, the individual approach to Ukraine’s engagement in EDG, revision of Ukraine's nationally determined contribution and specific features of each economic sector;
  •     to approve the draft Law of Ukraine on Prevention, Reduction and Control of Industrial Pollution;

  •   to approve the Concept of the Nationwide Program for Thermal Modernization of Buildings;

  •  to adopt by-laws for the implementation of the provisions of the Law of Ukraine on Regulation of Economic Activity with Ozone-Depleting Substances and Fluorinated Greenhouse Gases;

  • to include into the list of priority European integration-related draft laws in the field of construction and energy efficiency, namely:

-       Draft Law of Ukraine on Energy Efficiency; and

-       Draft Law of Ukraine On Amendments to Some Laws of Ukraine Regarding Removing the Barriers to Large-Scale Thermal Modernisation of Buildings.
  • in the draft Law of Ukraine On the State Budget for 2021, to envisage allocation of necessary funding under the budget programs in line with the proposals of the Ministry of Communities and Territories Development of Ukraine:
-       ECCPC 2751290 "Functioning of the Energy Efficiency Fund" to fulfil international commitments of Ukraine to the EU and partner states;

-       ECCPC 2751030 "Scientific and scientific and technical activities in the field of construction, housing policy, housing and utility services and regional development, research on conservation and study of flora species in specially created conditions" with a view to updating the regulatory framework in the construction sector harmonized with European standards, particularly in terms of sustainable use of natural resources in construction.

  • to open a high-level dialogue between Ukraine and the EU concerning participation of Ukraine in the development of the EGD sectoral strategies, namely, in terms of pure hydrogen;
  • to identify priority partners of Ukraine among Member States for cooperation and interaction with the EU in the energy sector;

  • to explore the possibilities for strengthening the initiative of the Lublin Triangle by setting up joint initiatives with the member states and expanding the initiative to Hungary and Romania;
  • to instruct the Ministry of Infrastructure of Ukraine to consider the issue of due fulfilment of clauses 101, 105, 106, 114, 115, 117, 127 of Resolution of the Cabinet of Ministers of Ukraine No. 1413-p dated 04.12.2019[3];

  • to finalize the Concept of Green Energy Transition of Ukraine until 2050, which was actively developed in late 2019 – early 2020, and to develop a new energy strategy until 2030 taking into account the current approval of the Integrated National Energy and Climate Plan until 2030;
  • to properly finalize and apply a general-purpose tool of Strategic Environmental Assessment (SEA) defined by the Organisation for Economic Co-operation and Development (OECD), the EU Directive and the Law of Ukraine, and international consultations envisaged therein to analyse the cross-border impact, for initial justification and further agreement of key Ukrainian initiatives, due preparation of cooperation programmes with the EU and its member-states and specific joint projects aligned with European Green Deal priorities;
  • in order to ensure further relevant coordination of efforts for implementation of the aforementioned cooperation possibilities with the EU under the European Green Deal, to initiate reformatting of the Regional Development Agencies established in the regions of Ukraine into Offices of Regional Development and Promotion of European and Euro-Atlantic Integration according to the Resolution of the Cabinet of Ministers of Ukraine No. 209-r dated 03.03.2020;

  • to accelerate implementation of the emissions trading system envisaged by the Association Agreement between Ukraine and the European Union;

  • to consider possibilities of implementation of other СО2 emissions pricing mechanisms in Ukraine in view of existing practice in the EU member states and taking into account possible adverse social and economic impacts and ways for their compensation, using proceeds from such a mechanism’s implementation for financing transition to clean energy, energy efficiency and prevention of deepening of energy poverty;

  • implementation of relevant СО2 emission tariff for the economic sectors not covered by the emissions trading system;

  • to accelerate implementation of the following EU Directives: No. 305/2011 laying down harmonised conditions for the marketing of construction products, No. 2012/27 on energy efficiency, 2011/92 on the assessment of the effects of certain public and private projects on the environment;

  • to enhance collaboration on just transition and overcoming energy poverty on the one hand, and consideration of the possibilities for supporting Ukraine in creating the conditions for attracting sustainable funding, on the other hand;

  • to report, on a semi-annual basis, in separate meetings of the Verkhovna Rada Committee on Ukraine’s Integration into the European Union on the steps undertaken for the implementation of the measures mentioned in these recommendations.

Government Office for Coordination on European and Euro-Atlantic Integration, Secretariat of the Cabinet of Ministers of Ukraine:

  • to apply to the European Party with the request to engage Ukrainian Party in the development of mechanisms, forms and schemes required for implementation of the Carbon Border Adjustment Mechanism;

  • to ensure coordinated assessment of the potential impact of the introduction by the EU of the Carbon Border Adjustment Mechanism in Ukraine, taking into account the current economic situation, status of implementation of Ukraine's international commitments in the framework of WTO, Energy Community and the EU-Ukraine Association Agreement, as well as the status of negotiations on the rules of implementation of international cooperation mechanisms in line with the Article 6 of the Paris Agreement;

  • to shape their position on the mechanism and format of the Carbon Border Adjustment Mechanism for further cooperation with the EU, including as part of the ongoing pubic consultations with the European Commission (lasting until 28 October 2020)[4];

  • to apply to the European Party with the request to start preliminary bilateral expert negotiations on the potential format of the Carbon Border Adjustment Mechanism after the public consultations (28 October 2020) and before the official submission of the proposal on the format of the Carbon Border Adjustment Mechanism by the European Commission (July 2021).

Ministry of Energy of Ukraine:

 
  • to prepare and submit for consideration of the Cabinet of Ministers of Ukraine a draft Integrated energy and climate plan until 2030 reflecting the growing role of renewable energy sources and energy efficiency;

  • to prepare and submit for consideration of the Cabinet of Ministers of Ukraine a roadmap for generation and use of “green” hydrogen in Ukraine fully aligned with the EU Clean Hydrogen Strategy.


Ministry of Infrastructure of Ukraine:



  • to submit for consideration of the Cabinet of Ministers of Ukraine a draft Action Plan for implementation of the National Transport Strategy with a clear focus on environmental safety requirements, introduction of economic and other incentives for the use of more environmentally friendly transport in the cities, in particular, electric vehicles and municipal electric transport;

  • to introduce incentives for the use of alternative energy sources and clean vehicles, including special vehicles.


Ministry for Development of Economy, Trade and Agriculture of Ukraine 
 
  •     to analyse the potential impact of introduction of the Carbon Border Adjustment Mechanism, taking into account the current economic situation in Ukraine, status of implementation of Ukraine's international commitments in the framework of WTO, Paris Agreement, Energy Community and the EU-Ukraine Association Agreement;
  •     to develop and submit for consideration of the Cabinet of Ministers of Ukraine a draft Strategy for Industrial Complex Development in Ukraine until 2030.


Ministry of Environmental Protection and Natural Resources of Ukraine:


  •     to develop and submit for consideration of the Cabinet of Ministers of Ukraine a draft Strategy for Adaptation of the Agriculture, Forestry and Fishing Sectors to Climate Change;
  •     to finalise the development of a second nationally determined contribution in pursuance of Ukraine's commitments under the Paris Agreement, taking into account the current economic situation in Ukraine along with the economic growth projections until 2030, as well as the need for external financing required to meet the nationally determined contribution targets;
  •     to develop regulations required to enact a greenhouse gas emissions trading system in Ukraine.

Ministry of Foreign Affairs of Ukraine:

  •  to ensure the EU member states support for the proposals developed by the Government of Ukraine for preparation of a joint with the EU Roadmap for Ukraine's engagement in the European Green Deal.

 

Ministry for Communities and Territories Development of Ukraine:


  •  to develop by-laws for the implementation of the Law of Ukraine On Marketing of Construction Products (implementation of Regulation (EU) No 305/2011).
 

Verkhovna Rada Committee on Ukraine’s Integration into the European Union:

 
  • in pursuance of its supervisory functions, to hold a separate meeting every six months to oversee the steps taken to fulfil these recommendations;

  •  to forward these Recommendations to the Office of the President of Ukraine, Prime Minister of Ukraine, Chairman of the Verkhovna Rada of Ukraine, chairs of the relevant committees of the Verkhovna Rada of Ukraine, heads of the line ministries and departments, and the Head of the Delegation of the European Union to Ukraine.

[1] https://www.unece.org/fileadmin/DAM/energy/se/pdfs/CES/ge16_2020/ECE_ENERGY_GE.5_2020_8.pdf

[2] Statistical classification of economic activities in the European Community, https://ec.europa.eu/eurostat/web/nace-rev2

[3] https://zakon.rada.gov.ua/laws/show/1413-2019-%D1%80#Text

[4] EU Green Deal (Carbon Border Adjustment Mechanism), https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12228-Carbon-Border-Adjustment-Mechanism