Official Position of the UBTA on President Volodymyr Zelenskyy 's speech at the Climate Ambition Summit

16
12.2020

In accordance with the mandate of their members, UBTA representatives closely followed the development of NDC2 (Nationally Determined Contribution to Paris Agreement) model scenarios, participated in the work of the relevant working group, and joined the consultations with stakeholders on the NDC2 project in the format of public discussions. UBTA has been consistent in relaying the position of Ukrainian exporters on balancing climate ambitions and economic circumstances.

Statements of the President of Ukraine Volodymyr Zelenskyy at the International Climate Ambition Summit, which was held online on December 12, 2020, were also closely watched by the UBTA.

The position announced by the President of Ukraine on the target for greenhouse gas emissions in 2030 in all sectors of the Ukrainian economy in the range from 36% to 42% compared to 1990 (that is, a reduction of 58-64%) was assessed by the UBTA members as balanced and commensurate with the current economic situation in the country. The stated goal seems to be in solidarity with the discussed climate ambitions of other countries and their associations (for example, the EU - to reduce greenhouse gas emissions by 55% compared to 1990 levels[1]). At the same time, it takes into account the need to restore the national economy based on low-carbon technologies.

It should be noted that the parameters of climate ambitions announced by the President of Ukraine require additional assessments. UBTA members consider it is necessary to understand the volume of investment attraction needs in this particular case and the corresponding socio-economic consequences. Involving representatives of individual sectors of the economy in such assessments will guarantee their inclusivity and representativeness.

UBTA members are convinced that the success of the practical implementation of the climate goal announced by the President of Ukraine depends on its consideration in national strategic and program documents. For example, the National Economic Strategy 2030[2], the Integrated Plan to Combat Climate Change and Energy Development until 2030[3], the Strategy of Environmental Safety and Adaptation to Climate Change[4], the Concept of the State Program for the Transformation of Coal Regions of Ukraine to 2030[5], the planned Energy Strategy of Ukraine until 2035, and the planned Concept of the "Green" Energy Transition of Ukraine until 2050[6] should focus on the updated state climate ambitions.

Special attention should be paid to the aspect of planning financial support for measures to decarbonize the national economy. For example, the European Union, one of the largest trading partners of Ukraine by setting its own climate goals, provides for 2/3 of the financing at the expense of budget funds[7]. Consequently, it is also appropriate in Ukraine to update the issue of raising funds for decarbonization from the general and local budgets, reinvesting the CO2 tax, and attracting external investment and international assistance.

Summing up the abovementioned, UBTA suggests that the Government of Ukraine involve representatives of the business community in a dialogue to finalize NDC2. In addition, it is proposed to carry out appropriate work on bringing the strategic guidelines of Ukraine (National Economic Strategy 2030, Energy Strategy of Ukraine until 2035, Low-Carbon Development Strategy of Ukraine until 2050) to the unified agreed indicators of state development.

In our opinion, the conclusions and recommendations of such a dialogue should be taken into account by the government at key platforms of international negotiations of Ukraine on climate issues. Particularly, in the framework of negotiations on the revision of the association agreement, as well as a separate dialogue with the EU on the European Green Deal.

 

 

[1] https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1599

[2] https://www.kmu.gov.ua/news/uryad-oficijno-rozpochav-stvorennya-nacionalnoyi-ekonomichnoyi-strategiyi-2030

[3] http://mpe.kmu.gov.ua/minugol/control/publish/article?art_id=245477679

[4] https://zakon.rada.gov.ua/laws/show/n0005525-20#Text

[5] https://www.kmu.gov.ua/news/minregion-rozpochav-obgovorennya-koncepciyi-derzhavnoyi-programi-transformaciyi-vugilnih-regioniv-ukrayini-na-period-do-2030-roku

[6] https://mepr.gov.ua/news/34424.html 

[7] https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_24