Ukrainian enterprises will be given 4 years for eco-modernization: Bondarenko told all the details

Ukrainian enterprises will be given 4 years for eco-modernization: Bondarenko told all the details

Katerina Belousova

Currently, it is not known where the investments for the implementation of eco-modernization will come from

The draft law "On industrial pollution" provides for a 12-year period for the modernization of all existing industrial facilities, in particular, a year for the implementation of the draft law, 4 years for the introduction of BATM norms, and 7 years for modernization.

Draft Law No. 6004-d "On Ensuring the Constitutional Rights of Citizens to an Environment Safe for Life and Health" provides for the implementation of European best available technologies and management methods in industry (BATM), says the column of the head of the Committee on Environmental Policy and Nature Management Oleg Bondarenko on Economic truth.

Bondarenko said that the draft law, together with by-laws, implements the provisions of Directive 2010/75/EC on industrial pollution into Ukrainian legislation. This will ensure the same conditions of basic constitutional rights as in Europe regarding:

  • quality of life and health;
  • environmental safety;
  • quality of atmospheric air, water and other natural resources.

He emphasized that the document will allow Ukraine to gradually restore industry without the Soviet legacy, outdated technologies and fossil fuels, which are dangerous for people's health and uncompetitive in Europe. In addition, it will provide an opportunity to implement the economic phenomenon of decoupling, that is, an increase in GDP without an increase in emissions of pollutants and greenhouse gases.

Bondarenko noted that thanks to BATM since 2004, European enterprises have reduced emissions:

  • sulfur dioxide – by 77%;
  • nitric oxide – by 49%;
  • dust – by 81%.

In addition, it was possible to significantly improve energy efficiency indicators.

He emphasized that the adoption of draft law No. 6004-D in Ukraine will allow repeating the experience of the EU, where industry reduced greenhouse gas emissions by 23% in 1990-2018 against the background of economic growth of 61%.

What does draft law No. 6004-d provide for?

Bondarenko said that the document provides that all industrial installations will be modernized within 12 years. The modernization timeline will be as follows:

  • 1 year – implementation of the draft law;
  • 4 years – introduction of BATM standards;
  • 7 years – modernization of enterprises.

He emphasized that the document also provides for obtaining an integrated online environmental permit, which will significantly reduce the bureaucratic pressure on business. The permit will combine permits for waste management, special water use, and air emissions. In addition, it will allow the public to participate in the issuance of permits, which will prevent abuse. And state structures should comprehensively monitor and prevent industrial pollution, because all data will be digitized, which will simplify their analytics.

Advantages draft law No. 6004-d

Bondarenko noted that after the adoption in the EU of the carbon adjustment mechanism at the CBAM border, from 2026, importers will have to pay either a tax to the EU treasury for carbon emissions, or direct these funds to decarbonization.

He emphasized that the only exception to CBAM will be the energy sector for third countries in the event of:

  • development of a decarbonization map, which provides for a price equivalent to the EU emissions trading system (ETS);
  • national obligations to achieve carbon neutrality no later than 2050.

"After the adoption of draft law No. 6004-D, the post-war development of Ukraine's industrial sector will finally be synchronized with EU standards and norms, which has not been the case since the beginning of independence and had its consequences in the form of excessive emissions and significant energy consumption," explained the head of the eco-committee, adding that the European Commission will evaluate Ukraine not only from the point of view of the implementation of the Association Agreement, but also from the point of view of readiness to implement the acts of the Green Course.

Bondarenko noted that the implementation of the norms of Directive 2010/75/EC reduces the energy intensity of products, sets limits on emissions of pollutants, as well as carbon dioxide, and offers operators of industrial plants ways to reduce them. Among them are the application of NDTM in the field of energy efficiency, improvement of monitoring and reporting on emissions, consideration of the use of CCS – carbon capture storage technologies in certain sectors. In addition, the implementation of BATM standards at the enterprise will improve occupational health and safety and prevent man-made disasters.

How much will it cost

The head of the eco-committee said that according to the scientists of the Institute of Economics and Forecasting of the National Academy of Sciences, the post-war recovery of Ukraine based on the principles of decarbonization and reduction of industrial pollution will require only 5% more investment. This will free Ukraine from dependence on fossil fuel imports, which will positively affect the balance of payments, as well as reduce toxic emissions.

However, the question arises as to where such investments will come from.

It is noted that thanks to this, indirect losses due to environmental pollution and the corresponding morbidity and mortality of the population will decrease by 0.7%-1.3% of GDP or by $1.1-2.1 billion per year. In addition, it will reduce the amount of toxic emissions for the years 2025-2050 from electricity production by:

  • 69% for ash dust;
  • by 54% for nitrogen oxide (NOx);
  • for 45% sulfur dioxide (SO2).

This will save the lives and health of tens of thousands of Ukrainians.

"It is very important for Ukraine to withstand the war with the aggressor physically and economically," said Bondarenko, adding that without economic recovery, final victory is impossible.

Earlier, EcoPolitic wrote, that the European Business Association (EBA) called for finalizing 3 principle points in draft law No. 6004-d "On ensuring the constitutional rights of citizens to an environment safe for life and health". This is necessary for the successful implementation of the reform in the field of industrial pollution.

Previously, EcoPolitic analyzed the reasons the backwardness of Ukraine in the development of environmental policy.

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