UKRAINE: preparations and considerations on INDCs - Seminar on International Climate Negotiations

Seminar on International Climate Negotiations

     UKRAINE: preparations and
      considerations on INDCs

                    Berlin
             13-14, November 2014

National policy context
Verkhovna Rada of Ukraine ratified
Association Agreement between the European Union
and the European Atomic Energy Community and their
member states, of the one part, and Ukraine, of the
other part»
on 16 September 2014

Cabinet of Ministers of Ukraine by its Regulation of 17
September 2014 approved Action Plan on the
implementation of the Association Agreement between the
European Union and Ukraine

National policy context
                                  Association Agreement
ENERGY COOPERATION
ARTICLE 338

Mutual cooperation shall cover, among others, the following areas:
(i) promotion of energy efficiency and energy savings, including through the
establishment of energy efficiency policies and legal and regulatory frameworks, with the
aim of achieving major improvements corresponding to EU standards, including efficient
generation, production, transportation, distribution and use of energy, compatible with the
functioning of market mechanisms, as well as the efficient utilisation of energy in
appliances, lightings and buildings;
(j) development of and support for renewable energies in an economic
and environmentally sound manner, as well as alternative fuels, including sustainable
biofuel production, and cooperation on regulatory issues, certification and standardisation as well as
on technological and commercial development;
(k) promotion of the Joint Implementation Mechanism                 under the Kyoto Protocol
to the UN Framework Convention on Climate Change of 1997 to reduce emissions of greenhouse
gases through energy efficiency and renewable energy projects

National policy context
                        Association Agreement
ENVIRONMENT
ARTICLE 361

Cooperation shall aim at preserving, protecting, improving, and
rehabilitating the quality of the environment, protecting human health,
prudent and rational utilisation of natural resources and promoting
measures at international level to deal with regional or global
environmental problems, inter alia in the areas of:
(a) climate change

ARTICLE 365
The cooperation shall cover, inter alia, the following objectives:
(c) development and implementation of a policy on climate
change, in particular as listed in Annex XXXI to this Agreement

National policy context
                        Association Agreement
                                                           ANNEX XXX
   Climate change and protection of the ozone layer
   Directive 2003/87/EC establishing a scheme for greenhouse gas
emission allowance trading within the Community and amending
Directive 96/61/EC as amended by Directive 2004/101/EC :
 adoption of national legislation and designation of competent
authority/ies
 establishment of a system for identifying relevant installations and
for identifying greenhouse gases (Annexes I and II)
 development of a national allocation plan to distribute allowances to
installations (art. 9)
 establishment of a system for issuing greenhouse gas emissions
permits and issuance of allowances to be traded domestically among
installations in Ukraine (art. 4 and 11 - 13)
 establishment of monitoring, reporting, verification and enforcement
systems and public consultations procedures (art. 9, 14 – 17, 19 and 21)

National policy context
                   Association Agreement

                                               ANNEX XXXI

 Implementation by Ukraine of the Kyoto Protocol,
including all eligibility criteria for fully using the Kyoto
mechanisms
 Development of an action plan for long-term (i.e., post-
2012) mitigation of and adaptation to climate change
 Development and implementation of long-term
measures to reduce emissions of greenhouse gases

National policy context
                  Current Legal Framework
 Protocol concerning the Accession of Ukraine to the
  Treaty establishing the Energy Community (Ratified on
  15 December 2010)
 In October 2012 Energy Community Ministerial Council
  took the Decision of MC of EnC D/2012/04/MC-EnC
  amending Article 20 of the Treaty that stipulates the
  implementation of Directive on the promotion of the use
  of energy from renewable sources (2009/28/EC, RES
  Directive)
Ukraine was committed to reach 11% of the energy
  consumption through renewable energy sources by 2020
Ukraine’s National Action Plan for Renewable Energy for
  the period up to 2020 was adopted on 1 October 2014

National policy context
                       Current Legal Framework

 Law of Ukraine "On Basics (strategy) of the State
  Environmental Policy of Ukraine till 2020" (adopted on
  21 December 2010):
 optimization of the energy sector of the national economy by
increasing the use of energy sources with low carbon dioxide
emissions by 2015 for 10% and by 2020 for 20%;
 development of the basic policy framework for adaptation to
climate change by 2015, development and phased implementation of a
national action plan to mitigate climate change for the period to 2030;
 raising of energy efficiency by 25% up to 2015 and by 50% up to
2020 relative to the base year by implementing energy and resource
conservation in energy-consuming sectors;
 increasing the use of renewable and alternative energy sources

National policy context
                          Current Legal Framework

 Law of Ukraine of 20 November 2012 “On Amending the Law
  of Ukraine "On Electricity" in order to stimulate the production
  of electricity from alternative energy sources established
  “green tariff“ (feed-in tariff for electricity generated at the
  power plants with alternative energy)
 Environmental tax replaced environmental fees for pollution in
  2011
Tax code introduced CO2 emissions tax:
0.22 UAH / tCO2 (around 0.022 Euro) in 2011
0.26 UAH / tCO2 (around 0.016 Euro) in 2014
(stationary sources of CO2 emissions mainly in power sector enterprises and
    processing industry (metal and coke production, chemical and petrochemical,
    cement, food industries)
Сurrent tax rate does not provide sufficient incentive to reduce
  emissions

National policy context
                      Current Legal Framework
 National Energy Strategy till 2030 (approved on 24 July 2013)
Objectives:
 to improve energy security and energy efficiency
 to meet energy demand
 to increase GDP through efficient development of fuel and energy
  complex
 to reduce anthropogenic impact on environment
Mechanisms:
 Elimination of natural gas import dependency though substantial
  increasing of domestic gas production (shale gas, coalbed methane,
  coal gasification)
 Realization of potential for energy efficiency and energy savings in
  industry and residential sectors
 Development of renewable sources of energy

 State Target Energy-Efficiency Program for 2010-2015,
  (approved on 1 March 2010)

National policy context
                     Current Legal Framework
Current political situation and economic challenges
require amending the legislation relating to energy and
climate change
New projections need to be developed

Economic Reforms Strategy is under consideration:
•energy security and imported energy resources independence
should be ensured
•investment in energy efficiency and energy saving are of the top
priority
•industry and infrastructure should undergo changes especially
for coal and petro-chemical industries, power plants and
distribution infrastructure, industrial enterprises, and public and
residential buildings
 Association Agreement is being implemented

Considerations on INDCs
                     Mitigation
Approach 1.
•GDP per capita scenarios and forecasts
•Energy consumption per capita scenarios and
trends/trajectory
•CO2 emissions per capita scenarios and
trends/trajectory
Approach 2.
• GHG emissions intensity for various scenarios:
sectoral, regional, per GDP, per gases
•Energy intensity declining scenarios
• GHG intensity per production unit (e.g. MWh or
tonne)

Considerations on INDCs
                      Mitigation

Approach 3.
• Balanced social and economic development
  indicators (e.g. World Bank Climate Change and
  Economy & Growth indicators)
• Energy security (sustainable energy)
• Low carbon development scenarios
• Equity and suppressed demand principle

Adaptation
 Adaptation to climate change should be a key element of
  the 2015 Agreement
 Activities on planning and implementation of national
  adaptation measures should be strengthened
 Adaptation measures should be mandatory component
  for national and sectoral development plans/programs
 International cooperation across all elements of
  adaptation policies with the accumulation and synthesis
  of the information and knowledge about the best
  available tools and practices should be enhanced

Cooperation on adaptation between EU and Ukraine is
  expected to be strengthened under the Association
  Agreement, in particular in a trans-boundary context
  (climate change modeling, systematic observations,
  early warning systems etc.)

Public consultation
UNECE Convention on Access to Information, Public
Participation in Decision-making and Access to Justice
in Environmental Matters, usually known as the
Aarhus Convention, was ratified on 6 July 1999

            Platform for public consultation
Public Councils under each Ministry and other
central and local governmental bodies
NGO’s Working Group on Climate Change

Cross-government coordination
Internationally
EU-Ukraine Working Group on Climate Change is expected
to update its scope of work under the new conditions of the
Association Agreement

Nationally
Inter-Agency Commission on implementation of Ukraine’s
commitments under UNFCCC and the Kyoto Protocol
established in 1999 should revise its mandate and
membership