Ukraine Plans to Implement EU Taxonomy for Sustainable Finance Development
The Government of Ukraine has approved the Strategy for Recovery, Sustainable Development, and Digital Transformation of Small and Medium Enterprises for the period until 2027, which provides for the implementation of European Union Regulation 2020/852 (EU Taxonomy Regulation) on establishing a framework to facilitate sustainable investment.
The EU Taxonomy is legislation that establishes a set of principles and technical criteria to determine whether certain activities are environmentally or climate sustainable. The implementation of the EU Taxonomy is important for the realization of the Paris Agreement and the European Green Deal, the development of sustainable investment markets, countering "greenwashing," and implementing responsible business practices.
The Law of Ukraine "On the Basic Principles of State Climate Policy" establishes an interim goal - reducing greenhouse gas emissions by at least 65 percent by 2030 compared to 1990 levels and achieving climate neutrality, which synchronizes Ukraine's decarbonization goals with those of the European Green Deal.
Also, the recently approved Strategy for the Implementation of Sustainability Reporting by Enterprises provides for the formation of a regulatory framework for the preparation, submission, and publication of sustainability reports in accordance with European ESRS standards and Article 8 of the EU Taxonomy Regulation.
It is expected that the full implementation of the EU Taxonomy in Ukraine will be a cross-sectoral and long-term process. The government's priority task is to determine the responsible central executive authority and establish an interagency working group on the implementation of the EU Taxonomy.
More information can be found in the full study "Implementation of the EU Taxonomy: Review of the Readiness of Ukrainian National Legislation."
The full text of the study "Implementation of the EU Taxonomy: Review of the Readiness of Ukrainian National Legislation" can be viewed via the link.
This document was prepared with the support of the International Renaissance Foundation within the project "Support for the decarbonization of Ukraine's economy through the development of new financing models using debt obligations. Stage 5".
The content of this document is the responsibility of NGO "DIXI GROUP" and under no circumstances can be considered to reflect the position of the International Renaissance Foundation.
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