Ukraine will spend UAH 900 million on the modernization of enterprises

В Украине потратят 900 миллионов гривень на модернизацию предприятий

The bill provides to introduce a mechanism for using the funds for the tax on CO2 emissions.

The Ministry of energy jointly with the State Agency on energy efficiency and energy conservation and the Ukrainian-Danish energy center has developed the bill which provides for amendments to the Budget code of Ukraine to ensure a guaranteed source of funding for the modernization of enterprises.

In the message of the Saee said that the industry is one of the most energy-intensive sectors of Ukraine’s economy and occupies about 30% of total energy consumption in the country.

“Given this, it is necessary to stimulate energy efficiency in this sector. This question becomes even more relevant from the point of view of significant CO2 emissions in industry and plans for the introduction of the EU fiscal framework governing the import of carbon-intensive goods in the framework of the European green agreement. Therefore, the bill provides to introduce a mechanism for using the funds for the tax on CO2 emissions as the source of co-financing of EE measures in enterprises”, – stated in the message.

It is noted that for this initiative it is proposed to establish a State Fund of energy-efficient modernization of the enterprises which will be able to accumulate income tax on the CO2 emissions (around 900 million) that don’t have a purpose and annually goes to the General Fund of the state budget, as well as to provide enterprises the compensation of loans for the purchase of energy efficient equipment.

According to the press service, this is the mechanism of earmarking in many countries (Finland, Denmark, UK, Sweden) became the stimulus for industrial enterprises as to the rational use of energy and optimization of technological processes in production.

“In 2018 the tax on the emissions of 1 ton of CO2 increased from 41 kopeks. up to UAH 10. As a result, revenues from this tax increased from 50 million UAH in 2018 to almost 1 billion in 2019. These funds can be a source of financing the modernization of enterprises. The expected effect is the reduction of energy consumption and, consequently, CO2 emissions, creating new jobs and improving the competitiveness of the economy”, – the press service quoted acting Chairman of Saee Constantine Guru.

In January 2020 the European Union has declared its readiness to impose an environmental tax on “dirty” electricity that is imported from neighbouring countries, including Ukraine.

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