The Cabinet of Ministers embarks upon green economic transformations

The Ministry of Energy of Ukraine is drafting at least three policy papers on green energy transition, which will further be integral parts of a unified strategy for Ukraine’s green transformation.

This was reported by Kyrylo Kryvolap, Director of the Economic Recovery Center (ERC), at a round table on “Peculiarities of green transition of the energy sector and the role of the steel industry” held by GMK Center today, 29 September.

According to him, Ukrainian policymakers are now drafting the following documents needed for the green energy transition of Ukraine:

1. KPMG consulting company is developing the National Energy Strategy. The company has 9 months for its preparation. The Ministry of Energy expects decisions on market models, incentives and balancing, as well as electricity production and consumption forecast to be made by the end of the current year.
2. Roland Berger consulting company is finalizing the National Hydrogen Strategy.
3. The Action Plan for the development of renewable energy sources is being updated.

“The implementation of these several projects will in the long run converge on one point, the actual strategy for green energy transition. ERC will also take part in this process,” explained Mr Kryvolap.

At the same time, according to the expert, the implementation of green energy transition initiatives is impeded by the lack of professional with corresponding specialization in the public sector. Therefore, work is underway, in cooperation with international partners, to increase the number of experts who will be engaged in the implementation of Ukraine’s green transformation. Engaging independent experts in these processes is important as well.

It has to be mentioned that Ukraine’s green transition actually started this June, when the European Commission presented a large-scale program to combat climate change, Fit for 55, providing for the implementation of the Carbon Border Adjustment (CBAM) Mechanism from 2023.

According to BCG, decarbonization of the global economy will require €10 trillion in equipment investment until 2050. According to GMK Center’s estimates, achieving climate neutrality of Ukraine’s steel industry will require $25 billion in capital investment. The main burden will fall on 2030–2070.