Ukraine has approved the National Energy and Climate Plan
On June 25 the Cabinet of Ministers of Ukraine adopted the National Energy and Climate Plan (NECP) by 2030. This Plan was created and adopted under the active coordination of the DiXi Group think tank
Ukraine has developed the NECP in accordance with the requirements of Regulation (EU) 2018/1999 and taking into account the best practices of EU member states, as part of its obligations as a contracting party to the Energy Community. Also, the NECP is one of the conditions for Ukraine’s negotiation process and accession to the European Union.
“The government approved the National Energy and Climate Plan on the same day that negotiations on joining the European Union began. This is symbolic, as the creation of this document is an important part of the European integration process. It was prepared in record time – less than in a year. The investment needs total over 41.5 billion USD. Its fulfillment will not only contribute to the decarbonization of our country’s economy, but will also open up significant opportunities to attract resources for the implementation of the Plan,” said First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine, Yulia Svyrydenko.
More than 1500 participants from various sectors and stakeholders joined the discussions about the NECP, including the Ukrainian government, European partners, civil society, the public sector, local communities, and representatives of neighboring countries.
“It is important for us that civil society has not only participated in the discussion process but has also directly contributed to the creation of the document that brings us closer to EU membership. The main question now is how to transform the NECP into concrete decisions, actions, and find investments for them during the war and the post-war period. The success and transparency of Ukraine’s green recovery process, among other things, will depend on the cooperation between the state and civil society,” emphasized Olena Pavlenko, President of DiXi Group.
Among the key NECP targets are:
• Reduction of greenhouse gas emissions by 65% compared to the level of 1990;
• The share of renewable energy sources in the structure of gross final energy consumption is at least 27%;
• Deepening the diversification of sources and ways of supplying energy resources – no more than 30% from one supplier.
“A distinctive feature of Ukraine’s NECP, compared to the plans of EU countries, is that in terms of energy security, it includes goals and measures aimed at protecting and enhancing the resilience of critical infrastructure. Ukraine prepared this Plan in conditions of the full-scale war, making the security component indispensable for further development and a green transition. In the short term, we also need to take care of the physical and cyber protection of our facilities; in the medium term, we need to overcome import dependence, achieve netto export in specific sectors, build a reserve system based on the European model, and adhere to gas and electricity supply reliability standards,” said Roman Nitsovych, Research Director at DiXi Group.
During the preparation of the NECP, all strategic documents, state programs, legislation, and regulations that directly or indirectly concern all five dimensions of the document were analyzed: decarbonization (reduction of greenhouse gas emissions, development of renewable energy sources); energy efficiency; energy security; internal energy market; research, innovation and competitiveness.
“Among the key directions of development in the field of energy markets, it is worth noting the deepening of integration with the electricity markets of ENTSO-E countries and the further liberalization of the internal market, particularly pricing in its wholesale and retail segments,” said Bohdan Serebrennikov, Deputy Research Director at DiXi Group.
The development of the NECP draft was ensured by the Ministry of Economy of Ukraine, in close cooperation with the Ministry of Environmental Protection and Natural Resources of Ukraine and the Ministry of Energy of Ukraine. The main international partners in the development of the National Energy Plan were the Energy Community Secretariat and the European Commission, which provided consultations and comments throughout the entire process of the NECP development. The British Embassy in Ukraine, the Net Zero World Initiative, and the United Nations Development Program provided support for the development of the Plan. The team that worked on the document consisted of representatives of the DiXi Group think tank, the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, and independent experts.
Further the implementation of the National Energy and Climate Plan (NECP) will be coordinated by an independent advisory body – the Green Transition Office under the Ministry of Economy of Ukraine. The Office is a project aimed at supporting the Ministry. It is funded by the British Embassy in Ukraine and implemented by DiXi Group.
According to the Head of the Office, Development Director at DiXi Group Andriy Kitura, his team, in cooperation with the Ministry, plans to develop and present an approach to implementing the NECP and monitoring the achievement of the document’s goals.
The Green Transition Office will also help identify and present business projects to stakeholders that meet the goals and objectives of the NECP.
