The European Parliament has supported the Regulation establishing the Ukraine Facility, a €50 billion program to support Ukraine, which includes climate and environmental goals, among others.
In March, the Cabinet of Ministers of Ukraine is to approve the program plan and submit it to the European Commission, the Government Portal reports.
The press service said that the Regulation defines the directions, forms and procedure for providing financial support for Ukraine, which are divided into three components:
- direct support of the state budget – € 38.27 billion ( € 33 billion in the form of loans and € 5.27 billion in the form of grants);
- a special investment instrument to cover risks in priority sectors – € 6.97 billion;
- technical support in the implementation of reforms, as well as interest coverage on loans, including previously received ones – € 4.76 billion
It is noted that the support program will operate from 2024 to 2027. It also provides for a transitional financing mechanism that will allow Ukraine to receive support for the state budget even before its full launch.
In March, Ukraine must finalize the Plan and take into account the following conditions in it:
- combating environmental crimes, in particular damage caused as a result of war;
- compliance with the principle of "do no significant harm" with regard to climate and environmental objectives in war and post-war scenarios;
- strengthen cross-border cooperation with neighboring states in the field of environmental protection;
- direct 20% of grant funds within the framework of the first component of the program (€1.05 billion) to restoration and modernization in the regions.
It is expected that the Plan will be finally approved in April, which will allow Ukraine Facility to be fully launched. The EU will provide support on a quarterly basis for the fulfillment of the defined criteria for carrying out the envisaged reforms.
The government's press service explained that the Plan is not a general strategy for the recovery of Ukraine. It covers only a part of the state changes foreseen for the coming years with a focus on macroeconomic growth.
Deputy Minister of Environmental Protection and Natural Resources Yevgeny Fedorenko said that the team of the Ministry of Environment held technical consultations with European partners regarding the environmental component of the program. In particular, with representatives of the European Commission, they discussed the implementation of the indicators of the Reform and Investment Plan, which is an integral part of the Ukraine Facility program, including in 2024:
- launch of the reform of reduction and control of industrial pollution;
- implementation of the rules of environmental impact assessment and strategic environmental assessment in all projects, programs and strategies, with the exception of clearly defined temporary deviations.
He emphasized that a number of important steps are also planned for 2025-2026, namely:
- creation of market mechanisms for carbon pricing;
- restoration and preservation of natural resources;
- reforming the waste management system as a component of building a circular economy.
"Of course, work in each of these directions is already underway," Fedorenko said, adding that European colleagues expressed support and confidence in Ukraine's ability to achieve its goals.
Earlier, EcoPolitic wrote, that coordinator of the Industrial Ecology and Sustainable Development Committee of the European Business Association, Olga Boyko, warned that the launch of the Ukraine Facility will replace some other support programs, due to which Ukraine may not receive from the EU about €4.4 billion of potential and existing financing until 2027 for green transformation.
Previously, EcoPolitic analyzed how European partners see the process of green recovery Ukraine.
