Zelensky signed the law on the State Decarbonization Fund

Zelensky signed the law on the State Decarbonization Fund
Katerina Belousova

This will allow the introduction of the European "polluter pays" principle in Ukraine

The President of Ukraine, Volodymyr Zelenskyi, signed draft law No. 8433 "On amendments to Ccapter VI "Final and transitional provisions" of the Budget Code of Ukraine regarding the use of funds from accounts for the support of Ukraine."

The document provides for the creation of the State Fund for decarbonization and energy-efficient transformation, the State Agency for Energy Efficiency and Energy Saving reports on Facebook.

"This is a significant step that confirms that Ukraine is following the global trend of decarbonization no matter what," the press service emphasized.

The message explained that the law will allow the introduction of the European polluter pays principle in Ukraine, which is provided for in the EU Regulation on energy management and climate action. This means that funds from the tax on CO2 emissions will be directed specifically to energy-efficient goals.

"The law gives a green light to the creation of a special fund in Ukraine, which will become a reliable and, importantly, permanent source of financing for numerous energy efficiency projects and programs in various sectors of the economy," said the head of the State Energy Efficiency Agency, Hanna Zamazeyeva.

She added that the team of the State Energy Efficiency Agency and the Ministry of Community Development, Territories and Infrastructure (Ministry of Reconstruction) has already started developing mechanisms for the use of funds. And also by creating financial instruments that could stimulate decarbonization and energy efficiency.

The message emphasized that thanks to the State Energy Efficiency Fund, as the main energy manager of the country, plans to implement a number of mechanisms, namely:

  • green bonds;
  • ESCO projects;
  • green lending;
  • factoring and leasing.

It is noted that the main tasks of the fund are:

  • support of state programs of energy efficiency, alternative energy sources and decarbonization;
  • attraction of international credit funds and grants for the implementation of investment projects;
  • reliable payback and return of foreign investments and financial obligations.

"Having created and replenished the fund, we will be able to implement many programs that will allow the population, businesses, and local authorities to become energy efficient and energy-independent. Communities can use the saved funds for their reconstruction and social well-being, and enterprises - for their development and increasing their competitiveness," said Zamazeyeva.

The message added that people's deputies worked together with the teams of the Ministry of Reconstruction and State Energy Efficiency to develop the draft law.

As EcoPolitic previously reported, on April 11, the Verkhovna Rada adopted in the second reading and in its entirety the government draft law No. 8433 "On the use of funds from accounts for the support of Ukraine", which provides for the creation of the State Fund for decarbonization and energy-efficient transformation. The fund will be operational from January 1, 2024.

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