Ukraine and European Green Deal
Annual monitoring report 2023
The year 2023 was marked by the continued reforms aimed at the implementation of the European Green Deal (EGD) principles in Ukraine – despite the extremely difficult circumstances of Russia’s full-scale invasion, which had an impact on all EGD-related fields in Ukraine. At the same time, some negative trends have become noticeable, creating obstacles to the effective implementation of reforms in Ukraine and ensuring conditions for the green recovery.
The insufficient level of transparency in the energy sector in terms of information about market operation, recovery dynamics, as well as development of decisions and national strategic documents remains a significant obstacle to the effective implementation of reforms. In particular, failure to publish the 2050 Energy Strategy of Ukraine adopted in 2023 has already led to significant negative reaction from stakeholders who systematically support Ukraine. Similar restrictions are also present in the implementation of other EGD-related policies in Ukraine, in particular environmental and climate policies.
Understanding the objective obstacles in providing access to information and engagement in decision-making under martial law, we call for increased access to information and inclusiveness of the decision-making process, taking into account stakeholders from the civil society and expert circles. Such an increase in transparency of key EGD-related areas is necessary to ensure high quality decisions, enable effective
support for reforms, and set priorities for green recovery.
At the same time, it is worth noting Ukraine’s progress in the implementation of the EGD priorities in a number of economic sectors during the year. In particular, strengthening the renewable energy sector reform and adoption of updated legislation that will facilitate the future transition to a market model are noticeable. Continued efforts to improve energy efficiency and create new mechanisms to finance decarbonization measures are another important aspect. These efforts were also taken against the background of partial stabilization of energy markets in Ukraine, which is also in line with the general trend of the European energy sector’s gradual recovery from the crisis caused by the full-scale Russian invasion in 2022.
At the same time, Ukraine has demonstrated progress in the development of climate and environmental legislation, as well as active climate diplomacy and promotion of the issue of fair compensation for environmental damage from Russian aggression at a number of international events (the United for Justice conference, the OSCE Climate Conference, COP28, etc.).
The following key events during the year can be highlighted:
• Adoption of the decision by the European Council to start negotiations on Ukraine’s accession to the EU;
• Active development and adoption of new legislation on RES development, in particular Law No. 3220-IX, the full implementation of which requires further steps to develop the regulatory framework at the level of the government and NEURC;
• Adoption of the provisions of Regulation (EU) 1227/2011 (REMIT) at the level of Ukrainian legislation, which, if successfully implemented, will increase the transparency of energy markets and introduce mechanisms to combat manipulation and insider trading, significantly improving the market operation;
• Launch of the first projects using new technologies, which will be extremely important for green recovery: in particular, launch of the first biomethane plant and licensing of the first energy storage project in Ukraine;
• Legislative amendments that will enhance energy efficiency and financing of relevant measures, including incentives for highly efficient cogeneration (Law No. 2955-IX) and launch of the State Fund for Decarbonization and Energy Efficient Transformation etc.
The publication was produced with the financial support of the European Union within the framework of the project “Mainstreaming sustainable development in Ukraine in line with the European Green Deal”, the International Renaissance Foundation within the framework of the project “Advocacy for the “green” recovery of Ukraine through increased support for Ukraine and weakening of Russian influence in the EU”, and the Center for Liberal Modernity (Zentrum Liberale Moderne) within the framework of the project “Ukraine in Europe – German-Ukrainian Parliamentary Dialogue, Strengthening Ukraine Competence in Germany and Promoting Ukraine’s European Integration”.
The project is implemented by a consortium of civil society organizations: DіXi Group (coordinator), Resource and Analysis Centre “Society and Environment”, Energy Efficient Cities of Ukraine (EECU) Association, Ukrainian Leadership Academy, Women’s Energy Club of Ukraine, DZYGA, PLATO.
Its contents are the sole responsibility of DіXi Group and do not necessarily reflect the views of the European Union and/or the International Renaissance Foundation and/or the Center for Liberal Modernity (Zentrum Liberale Moderne).
