The law providing for the creation of the State Decarbonization and Energy Efficiency Transformation Fund came into effect on January 1 in Ukraine.
The document was adopted by the Verkhovna Rada in the spring of 2023, as reported by Delo.ua.
The mentioned fund is established based on the European “polluter pays” principle, in accordance with the EU Regulation on Energy and Climate Action Management, which involves targeting environmental taxes for energy efficiency and decarbonization. This principle is applied in 21 EU countries.
Funds accumulated in the State Decarbonization and Energy Efficiency Transformation Fund will come from the environmental tax, as well as international credits and grants. These funds will be exclusively directed towards financing programs and measures for energy efficiency. The Law on the State Budget of Ukraine for 2024 anticipates revenue from the environmental tax amounting to 2.175 billion UAH.
Specifically, these funds will be allocated to state-targeted programs in the areas of energy efficiency, decarbonization, the use of renewable energy sources, and alternative fuels.
Additionally, the fund’s resources will be used to reduce the cost of credits and leasing obligations taken by individuals and legal entities for conducting energy-efficient activities, energy services, “green” projects, and reducing carbon dioxide emissions.
Moreover, the money will be directed towards fulfilling debt obligations for loans obtained by the state for implementing investment projects in the field of energy efficiency, renewable energy, and decarbonization.