The Ministry of Environmental Protection and Natural Resources of Ukraine has prepared and published a draft resolution of the Cabinet of Ministers of Ukraine “On Approval of the Concept of the State Targeted Program to Support Enterprises Implementing the Best Available Technologies and Management Methods for the Period up to 2030”.
The document is available on the official website of the Ministry.
It justifies the need to develop an appropriate state target program and determine the best option for supporting enterprises that will help reduce the negative impact on the environment, increase their competitiveness, ensure energy efficiency and sustainable development through the introduction of best available technologies and management practices (BATM).
It should be understood that the published Concept does not contain specific measures to support industrial enterprises. It is only a document that will be used as a basis for the development of the State Targeted Support Program. It will set out the steps the government will take to support the eco-modernization of domestic enterprises.
A key element of the program the Ministry of Environment sees the provision of financial support for enterprises. As an important direction of state support, the department noted legislative initiatives that will stimulate enterprises to implement BATM.
"It is necessary to develop and review the current environmental regulations that will facilitate the implementation of BATM in production," says the draft act.
At the same time, the developers of the Concept note that legislative changes should include not only strict requirements for enterprises, but also incentives for those who actively implement BATM. As an example, they cited the possibility of receiving tax benefits for enterprises that achieve certain environmental standards or reduce emissions of hazardous substances.
Options for solving the problem of the introduction of BATM in Ukraine
The draft Concept considers 2 possible options for solving the problem of implementing the best available methods and technologies:
1. Provision of financial support to enterprises for the implementation of BATM. It can be implemented in the form of grants, preferential loans or tax benefits for enterprises that invest in BATM.
Among the disadvantages of this option, the Ministry of Environment noted:
- expenses from the state budget, which may be difficult to fulfill in the conditions of economic restrictions;
- possible difficulties with the distribution of resources and control over their effective use;
- lack of guarantees that all enterprises that will receive financial support will use it as intended.
2. Change in legislation to encourage enterprises to implement BATM. This can be the introduction of new and revision of current environmental standards, as well as the provision of tax and customs benefits for the implementation of BATM installations by operators.
The Ministry sees the following disadvantages of this option:
- legislative changes require a long time for their development and implementation, which can delay obtaining results;
- enterprises may face difficulties in meeting new requirements due to high modernization costs.
Since each of the options has its advantages and disadvantages, the Ministry of Environment considers a comprehensive approach that combines elements of both options (financial support and legislative changes) to be optimal.
Sources of funding for implementation of best available methods and technologies
The draft Concept provides that the funding of the program will come from the following sources:
1. State budget of Ukraine for the relevant year.
The Concept's developers noted it as the main source of resources for the implementation of the program. These can be grants and subsidies for enterprises switching to BATM, as well as preferential loans to finance the purchase of new equipment.
2. International grants and financial programs.
It is noted that Ukraine already has access to many international environmental initiatives and financial assistance programs, such as those of the European Union, the United Nations, and the World Bank. These organizations can provide funding for the following areas:
- support of innovative environmental projects;
- financing of research and development in the field of energy saving and environmental safety;
- investing in the development of "green" technologies.
3. Private investments and other sources not prohibited by law.
The ministry noted that the program should include mechanisms for protecting investments and ensuring the profitability of projects, creating favorable conditions for attracting private investors: providing tax benefits, simplifying licensing and registration procedures.
When the State targeted program of support for enterprises implementing BATM will become operational
By the time the first companies begin to receive financial assistance from the state in the implementation of BATM, the following must be done:
- Approving the concept of the program and making a decision on the development of the program project.
- Determination of the state customer and terms of its development.
- Determination of activities and tasks proposed for inclusion in the program.
- Specification of volumes and sources of financing.
- Allocation of funds to ensure implementation of the program from the state budget.
We would like to remind you that since the signing of the Association Agreement between Ukraine and the EU, our country undertook to implement into Ukrainian legislation the provisions of Directive 2010/75/EU of the European Parliament and of the Council on industrial emissions (an integrated approach to pollution prevention and control). Its key component is the use of BATM to reduce emissions from large industrial installations.
Earlier, EcoPolitic wrote, that August 6 President Volodymyr Zelenskyy signed Law No. 11355 on industrial pollution. At the beginning of October in the EU updated provisions of Directive 2010/75/EC on industrial emissions. November 1 The Ministry of Environment published new BATM for ferrous metallurgy enterprises.
