Business expects an even more effective dialogue with the implementation of the Green Deal in 2021
This was stated today, January 19, by representatives of the European Business Association during a meeting of the Interdepartmental Working Group on the coordination of the activities to eliminate the effects of climate change within the scope of the European Green Deal, chaired by Prime Minister Denys Shmyhal.
In 2020, Ukraine began discussions with the EU on joining the European Green Deal (EGD), a new environmental program for the economic development of the European continent, aimed at reducing greenhouse gas emissions and achieving climate neutrality.
In practice, this means that European economic policy will change towards environmental efficiency. These changes will be especially relevant for external partners, who will have to adapt to new requirements, particularly, in trade issues. Therefore, decarbonization or the implementation of measures to reduce greenhouse gas emissions, in all sectors of the economy will play a key role in shaping the image of Ukraine.
The year 2021 will be very important in terms of cooperation with the EU on the European Green Deal. We as a country need to be part of this program at the stage of policy development so that we can be a full partner with Europe on the one hand, and, on the other hand, protect Ukrainian interests, namely, those of Ukrainian exporters internationally. At the same time, it should be remembered that all EU climate strategies are very substantive and clear. That is why we also emphasize the need to involve business in the development of specific documents, positions, and plans for the implementation of the European Green Deal in Ukraine.
The business also noted the positive steps taken by the government and parliament to develop climate policy in 2020:
· launch of a system for monitoring, reporting, and verification of greenhouse gas emissions, which is the first stage in launching the emissions trading market,
· involvement of business in developing a position document on Ukraine’s participation in the European Green Deal,
· protection of exporters’ interests by not applying the Border Carbon Adjustment to businesses (CBAM) which work with the EU,
· intensified development of a circular economy, particularly, by stimulating the use of industrial waste as a raw material, which in turn also affects the reduction of greenhouse gas emissions.
At the same time, businesses were not involved in the development of the latest version of climate documents, namely, sectoral policies and measures under the second Nationally Determined Contributions of Ukraine to the Paris Agreement. In fact, this document will be the starting point for the formation of further climate policy.
Therefore, EBA draws attention to the TOP-5 important points that should be taken into account to foster the implementation of climate policies and goals of Ukraine and ensure that they do not remain only on paper:
1. The goal of reducing greenhouse gas emissions under the second nationally determined contribution should be balanced and realistic considering the current state of the economy and the financial capacity of the state and business.
2. All climate commitments should include specific funding mechanisms. At present, climate policies and measures, specified in the second Nationally Determined Contributions and the Position Paper, do not contain clearly defined sources of funding.
3. Specific financial instruments should be created for the implementation of climate policies.
4. It is necessary to develop a roadmap for the implementation of the European Green Deal with specific deadlines, responsible authorities, funding, etc.
5. Continue the launch of a greenhouse gas emission allowance trading market. According to business, the existence of a quota trading system will be a strong argument for the non-application of CBAM to Ukraine and a real proof of Ukraine’s implementation of the EU climate architecture. This is especially relevant as the Border Carbon Adjustment Mechanism (CBAM) will likely impact exports from Ukraine to the EU.
The European Business Association is grateful to the authorities for our joint work on the Green Deal in 2020, but we look forward to even more effective dialogue and cooperation in 2021.
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