The Ministry of Strategic Industries of Ukraine informed us that Razom We Stand's proposals will be processed as part of the development of a five-year UNIDO Program for the Green Recovery and Development of Ukraine's Industry in the Post-War Period!

In early April, we appealed to the Ministry of Strategic Industries and other authorities to realize the potential of renewable energy sources in Ukraine, which reaches 874 GW, including about 250 GW of offshore wind power. And also to restore the metallurgical industry based on clean technologies of electric arc furnaces and direct reduction of iron.

This is very important, especially after the introduction of the EU's Carbon Border Adjustment Mechanism (CBAM) (the European Parliament finally adopted this decision 2 days ago) and the reform of the emissions trading system.  It will be implemented from October 1, 2023, when importers will start reporting greenhouse gas emissions from industrial products supplied from outside the EU.

The CBAM covers iron, steel, cement, aluminum, fertilizers, electricity, hydrogen, as well as indirect emissions from manufacturing under certain conditions. Importers of these goods will have to pay any price difference between the carbon price paid in the country of production and the price of carbon allowances in the European Union Emissions Trading System (EU ETS).

The payment of a tax on emissions associated with imported products under the CBAM will be gradually introduced from 2026 to 2034 at the same rate as the phase-out of free allowances in the EU ETS.

It is very important today to recognize renewable energy technologies key to the recovery of the energy sector and industry in Ukraine.

In this regard, according to the Ministry of Strategic Industries, together with the United Nations Industrial Development Organization (UNIDO) and in cooperation with the relevant ministries, work has begun on the development of a 5-year program for the green recovery and development of Ukraine's industry in the post-war period, which will include measures for the development of circular economy and environmental protection, decarbonization and sustainable energy.

Why is it important?

Pre-war data show that Ukrainian industry had 2.5 times higher energy intensity per unit of GDP than in Poland and 3.3 times higher than in Germany. The renewal of the production base in Ukraine was an urgent event without war-induced destruction. Before the start of the Great War, more than 90% of Ukraine's steel was produced in outdated blast furnaces and converter furnaces. Of the three dozen coke oven batteries in Ukraine, more than half had exhausted their 25-year service life and were working overtime, violating even the old technological standards. 

Obviously, in the context of integration into the EU, metallurgy and other industrial facilities must be deeply upgraded using new technologies. New enterprises should also be created to manufacture and recycle equipment for renewable energy. This will create new “green” jobs, reduce import dependence on equipment supplies, and build Ukraine's own modern circular economy.