DiXi Group Logo
uk
www.upscalerolex.to
IMG

Experts urge the government’s Action Program to be improved for successful implementation of the Association Agreement

Energy Reforms experts presented results of their analysis of the government’s five-year Action Program for conformity with the Association Agreement in the energy and environment sectors.

The presentation took place during the briefing “Conformity of the government’s plan with requirements of the Association Agreement in the energy sector”, organized by a coalition of Energy Reforms experts under the project “Increasing the influence of civil society in monitoring and political dialogue concerning reforms in the energy and related sectors according to implementation of the Association Agreement” with financial support from the European Union and co-financing by the International Renaissance Foundation.

Gas

The government’s program sets generally right goals and views reform of the gas market from the consumer’s perspective. However, several details are missing: how the lowering of prices will be ensured, and what market mechanisms will be implemented.

“The decision declining replacement of imports as a priority objective, in the event of economic expediency, is especially worrying from security viewpoint. The unbundling (separation of GTS operator from Naftogaz) – the key change in the market that must be completed by 1 January 2020 – wasn’t mentioned, either,” Roman Nitsovych, an Energy Reforms expert and Research Director at DiXi Group stressed.

Electricity and business climate

In the electricity sector, format of the energy-related part of the government’s Action Program also puts the Ukrainian energy consumer in the center of evaluation of the government’s performance, but at the same time, it remains unclear how the desired result is going to be achieved.

“For example, one of the program’s points stating that “Ukrainian consumers and Ukrainian businesses pay a fair price for quality energy products” could mean either continuing movement toward implementation of market conditions in the electricity sector or reversal to government regulation of that market. A fair price is a notion that could have a broad range of meanings for various stakeholders,” Svitlana Golikova, an Energy Reforms expert said.

Speaking about business climate, experts also noted a number of decisions which do not give an unambiguous answer concerning conformity with investor expectations. In particular, these were:

ü  simplification of tax administration;

ü  increasing the percentage of energy produced from sources of economic priority;

ü  introducing tax incentives to promote a clean environment

Energy efficiency

Energy Reforms experts believe that as of today, the energy efficiency goals declared in the government’s Action Program for the coming years contain only slogans and objectives for the future.

“The government’s program does not contain concrete instruments and mechanisms of achieving goals. The Ministry of Regional Development has seven goals envisaging attainment criteria and objectives, but clear actions and concrete expected results aren’t there. Eight goals and mechanisms of attaining them set by the newly-established Ministry of Energy and Environmental Protection of Ukraine do not contain concrete objectives at all, never mind clear actions,” Tetiana Boiko, an Energy Reforms expert and Coordinator of Energy Programs at OPORA Civil Network emphasized.

At the same time, among the advantages of the government’s Program the experts noted the initiative of developing a long-term strategy for thermal modernization of the housing stock and a database of energy and operational characteristics of buildings.

Environment

The government’s program contains six goals concerning environmental protection. However, these goals do not always have concrete target indicators, and the ways and methods of achieving them is anybody’s guess.

“This program could have been more focused and contained concrete priorities. Out of the program’s seven general target indicators, one is environmental and it concerns reduction of environmental pollution by at least 20%, but it is unclear what kind of pollution it means,” Natalia Andrusevych, an Energy Reforms expert and the Chair of “Society and Environment” Resource and Analytical Center said.

As for particular sectoral aspects, objectives related to industrial pollution are described in the greatest detail. The implementation of an integrated permit and the use of the best available technologies, and fulfillment of the National Plan on Reduction of Emissions from Large Combustion Plants are also mentioned. Certain provisions concerning the openness of data regarding businesses and the access to geoinformation could be found in the Program, too. As for the ambient air and protection of nature, they contain only certain actions which could help implement the relevant directives.

Oil

The Action Program of the new Cabinet of Ministers also does not devote proper attention to implementation of Ukraine’s international commitments in the oil sector. Only the goal 9.6 mentions interest in “the maximal replacement of hydrocarbon imports” and the goal 9.7 “development of domestic production and processing of oil and gas”, which must create new jobs and enlarge tax base along the entire chain of goods and services engaged in related sectors.

“Since the new Cabinet of Ministers took office, not a single regulatory act aimed to implement Ukraine’s international commitments in the oil sector was adopted. Given the absence of succession in actions of governments in Ukraine, it means de-facto failure to meet the applicable deadlines for implementation of objectives set out in the Ukraine-EU Association Agreement, in particular, in the part concerning implementation of Directives 2009/119/EC, 99/32/EC, 94/63/EC and 94/22/EC in Ukrainian legislation,” Hennadii Riabtsev, an Energy Reforms expert stressed.

“Presently, such matters as the choice of a model for creation of oil stocks and adoption of legislative acts regulating stock formation mechanisms and the terms of storing, unblocking (using) and replenishing oil stocks must be addressed as soon as possible,” Hennadii Riabtsev added.

The expert opinions are based on the results of regular monitoring of implementation of the Ukraine-EU Association Agreement in the energy and environment sectors. Members of six working groups are responsible for examination, providing the latest information regarding reforms and the relevant analytical products.

Energy Reforms expert coalition includes DiXi Group civil society organization, OPORA Civil Network, Energy Association of Ukraine (all-Ukrainian civil society organization), “Society and Environment” Resource and Analytical Center, and European-Ukrainian Agency.

The results of regular monitoring of implementation of the Ukraine-EU Association Agreement in the energy and environment sectors and the analytical memo Creating Oil Stocks: No More Delays are available on the official website of Energy Reforms expert coalition.

Comments

Disclosure of resource extraction contracts is important for Ukraine’s compliance with international environmental conventions

Olha Polunina

Manager for Sustainable Development

Disclosure of resource extraction contracts is important for Ukraine’s compliance with international environmental conventions

Ukraine has time until July 2022 to submit a plan of action, including a time schedule, and until October 2023 to provide a detailed progress report.

Ukraine Follows a Fossil Fuel Recovery Pathway

Yuliia Oharenko

expert of the DiXi Group project “Promoting Ukraine's Participation in the European Green Deal in the fields of energy and environment”

Ukraine Follows a Fossil Fuel Recovery Pathway

Despite multiple political statements supporting the European Green Deal and announced plans for the development of a joint with the EU Roadmap, Ukraine is moving in an opposite direction. These are the results of Energy Policy Tracker

The “Augean stables” of the extractive sector: is there any progress?

The “Augean stables” of the extractive sector: is there any progress?

The practice of procuring special extraction permits and then sitting idle on them for decades is unacceptable from the viewpoint of Ukraine’s energy independence and national security, raising budget revenues and the country’s investment attractiveness.

Ukraine improves its ranking under the EITI Standard

Olha Polunina

Manager for Sustainable Development at DiXi Group

Ukraine improves its ranking under the EITI Standard

The EITI Board acknowledged Ukraine’s efforts concerning disclosure of beneficial ownership information, creation of an online EITI reporting portal, and the launch of EITI implementation monitoring and assessment at national level.

Energy Transparency Index 2020: International Dimension

Bohdan Serebrennikov

Manager on consultancy and analytical services

Energy Transparency Index 2020: International Dimension

In 2020, we present the results of the first such research for the three Eastern Partnership countries – Ukraine, Moldova and Georgia.

Тижневик

Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform

Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform