On 16 July 2021, the Verkhovna Rada of Ukraine adopted Resolution No. 5126 "On the Implementation of the National Emission Reduction Plan from Large Combustion Plants" (the "Resolution"). By this Resolution, the Verkhovna Rada of Ukraine instructed the Cabinet of Ministers of Ukraine, relevant ministries and the National Energy and Utilities Regulatory Commission of Ukraine to take measures aimed at implementing the National Emission Reduction Plan (the "Plan").
The Resolution provides for:
- The duty of the Cabinet of Ministers of Ukraine to adopt regulations to ensure the reduction of sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions.
- The approval of a complex of potential sources and instruments of financial support for the implementation of the Plan. Such a complex must comply with the requirements of clause (f) of part three of Article 262 of the Association Agreement between the European Union and Ukraine.
- The Cabinet of Ministers of Ukraine must also develop and approve the draft law of Ukraine "On the Energy Strategy of Ukraine until 2050" (the "Draft Law"). The development of the Draft Law is entrusted to the Ministry of Energy of Ukraine. The Resolution defines a number of requirements for the Draft Law, which should determine:
- the role of coal and other fossil fuel-based generating facilities;
- mechanisms to ensure the balance of the energy network of Ukraine to ensure uninterrupted reliable power supply;
- synchronization of the entire unified energy system of Ukraine with ENTSO-E.
- The Ministry of Ecology will have to develop and approve a unified methodology for calculating and verifying data on emissions of air pollutants from large combustion plants. The Ministry of Health – a mechanism for quarterly calculation of losses caused by emissions of pollutants into the atmospheric air from large incineration of installations to the health care system, life, and health of citizens of Ukraine.
- NEURC will have to ensure the integration of the Plan in the conditions of the liberalized electricity market.
We assess the adopted Resolution as a step that is necessary in the implementation of the Plan. Also, the adoption of the Resolution in particular, and the implementation of the Plan in general, are quite positive steps, given that, firstly, the Ukrainian legislation in the field of environment is rather outdated and has long required updating, and secondly, both of these documents are aimed at implementing the provisions of the Directive 2010/75/EU "On industrial emissions (integrated pollution prevention and control)" and Directive 2001/80/EU "On the limitation of emissions of certain pollutants into the air from large combustion plants".
Considering that the regulations stipulated by the Resolution have yet to be developed and adopted, Asters' lawyers will closely monitor the implementation of the Resolution and the implementation of the Plan, as well as inform about new initiatives in this area and related issues.
For more information, please contact Asters Counsel Anzhelika Livitska and Senior Associate Bohdan Shmorhun.