Business proposes to make the Ukrainian economy more energy efficient

03/ 03/ 2021

On March 3, the Verkhovna Rada was going to consider the draft Law №4507 On Energy Efficiency in the first reading. Unfortunately, as of 2 p.m., the plenary day was over, and the consideration of the draft law has been postponed. According to preliminary information, the draft law will be considered on March 4. It is worth noting that the document was supposed to be put to the vote last week, however, its consideration was also postponed. Meanwhile, the draft law aims at updating the outdated energy-saving legislation of 1994 and promoting the implementation of best European practices of Directive 2012/27/EU. It should be a framework document that establishes basic principles of energy efficiency in the production, transportation, transmission, distribution, supply, and consumption of energy. However, its weekly postponement always delays the realization of this goal. The document provides the following positive changes: 1. Introduction of financial and tax mechanisms for the implementation of energy efficiency measures, for example, loans (subsidies), state guarantees for loans, etc. 2. Establishment of the National Energy Efficiency Action Plan, which is approved by the Cabinet of Ministers and revised every 3 years. 3. Establishment and operation of the Energy Efficiency Fund which is likely to be used to finance energy efficiency measures for companies. 4. Introduction of intelligent energy metering systems. 5. Formation of an energy service market (ESCO). At the same time, the draft law does not clearly define how and by whom the effect of the implementation of energy efficiency measures and the further imposition of penalties will be checked. Accordingly, there is a risk of ambiguous interpretations by the business and the government, which in turn results in possible abuses. Therefore, the business hopes that this issue will be resolved by the second reading. Olga Boiko. EBA Industrial Ecology and Sustainable Development Committee Coordinator. Ukraine′s energy intensity (namely, the amount of electricity consumed in production) is three times higher than in Poland and twice the world average, which makes our economy one of the least energy efficient in the world. Today, Ukraine has adopted more than 250 regulations on energy efficiency and energy conservation, but if we really want to be part of the European Green Deal and follow the path of decarbonization, it is necessary now to adopt this draft law. After all, it sets the direction where and how fast we should move. Therefore, the community expects that in the near future the draft law will be adopted in the first reading and the course on energy efficiency will be initiated by law! Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

On March 3, the Verkhovna Rada was going to consider the draft Law №4507 “On Energy Efficiency” in the first reading. Unfortunately, as of 2 p.m., the plenary day was over, and the consideration of the draft law has been postponed. According to preliminary information, the draft law will be considered on March 4. It is worth noting that the document was supposed to be put to the vote last week, however, its consideration was also postponed.

Meanwhile, the draft law aims at updating the outdated energy-saving legislation of 1994 and promoting the implementation of best European practices of Directive 2012/27/EU. It should be a framework document that establishes basic principles of energy efficiency in the production, transportation, transmission, distribution, supply, and consumption of energy. However, its weekly postponement always delays the realization of this goal.

The document provides the following positive changes:

1. Introduction of financial and tax mechanisms for the implementation of energy efficiency measures, for example, loans (subsidies), state guarantees for loans, etc.
2. Establishment of the National Energy Efficiency Action Plan, which is approved by the Cabinet of Ministers and revised every 3 years.
3. Establishment and operation of the Energy Efficiency Fund which is likely to be used to finance energy efficiency measures for companies.
4. Introduction of intelligent energy metering systems.
5. Formation of an energy service market (ESCO).

At the same time, the draft law does not clearly define how and by whom the effect of the implementation of energy efficiency measures and the further imposition of penalties will be checked. Accordingly, there is a risk of ambiguous interpretations by the business and the government, which in turn results in possible abuses. Therefore, the business hopes that this issue will be resolved by the second reading.

Olga Boiko EBA Industrial Ecology and Sustainable Development Committee Coordinator

Ukraine′s energy intensity (namely, the amount of electricity consumed in production) is three times higher than in Poland and twice the world average, which makes our economy one of the least energy efficient in the world. Today, Ukraine has adopted more than 250 regulations on energy efficiency and energy conservation, but if we really want to be part of the European Green Deal and follow the path of decarbonization, it is necessary now to adopt this draft law. After all, it sets the direction where and how fast we should move.

Therefore, the community expects that in the near future the draft law will be adopted in the first reading and the course on energy efficiency will be initiated by law!

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.