Ukraine will gradually implement the EU green taxonomy to transform the public investment system
Ukraine has already implemented into national legislation a number of tools to assess the impact of economic activities on the environment, but they are insufficient for fully considering climate factors in the public investment system. This was stated by Andrii Kitura, Development Director at DiXi Group, Head of the Green Transition Office at the Ministry of Economy of Ukraine.
According to him, although mechanisms such as strategic environmental assessment and environmental impact assessment are already functioning in Ukraine, they do not fully cover climate factors. Therefore, there is a need to implement additional tools.
An important step was the synchronization of Ukraine's climate goals with the EU goals. Ukraine aims to achieve carbon neutrality by 2050, which is already enshrined in legislation and will be reflected in the updated National Energy and Climate Plan.
The next logical step, as noted by the Head of the Green Transition Office, is the implementation of the EU green taxonomy.
"It essentially defines the criteria and requirements that will address issues arising from both public investments and private investments," emphasized Andrii Kitura.
Ukraine already has a public investment management system that includes the Unified Public Investment Portfolio, the Strategic Investment Council, and the DREAM platform, which ensures transparency and accountability for all stakeholders.
Recently adopted resolutions of the Cabinet of Ministers define the next stage of the reform - procedures for preparing, reviewing, and evaluating projects. The key element of the process is economic analysis at two stages of the project cycle. At the preliminary feasibility study stage, it is necessary to conduct a basic analysis of the project's impact on the environment and climate change. Special methodological recommendations for project holders will be approved.
At the feasibility study stage for large projects (over 50 million), more detailed information is required, including greenhouse gas emissions assessment, adaptation to climate change, and development of compensatory measures.
To develop effective methodological recommendations, consultations are being held within the government with various ministries, cooperation is carried out with World Bank and European Investment Bank teams, and meetings of a special working group on climate and environmental criteria are being conducted.
Andrii Kitura noted that Ukraine consulted with the European Commission on implementing climate factors in the public investment reform and aims to develop an approach that will be universal and in line with European practice. At the same time, Ukraine should not adjust its state policy to fit a specific donor, as this would be incorrect and inefficient.
He also emphasized that European regulatory documents and structural funds refer to the EU taxonomy, the "do no significant harm" principle, and six key dimensions of sustainable development.
The main challenge remains integrating European approaches into Ukrainian realities.
"The reality is that neither the Ukrainian government, nor Ukrainian stakeholders, nor local communities are ready to immediately live by such rules. Over the next few years, we will gradually implement individual elements of the EU Taxonomy," remarked the Head of the Green Transition Office.
For 2025, a simple but realistic approach is envisaged that takes into account climate factors and corresponds to European practice.
For local communities, which may be the least prepared for these changes, convenient tools will be developed - links to open databases on climate risks for different regions of Ukraine and explanatory materials on the compliance of various activities with certain criteria.
"Work on this continues. I very much hope that we will be able to jointly demonstrate the result in the near future," concluded Andrii Kitura, Development Director at DiXi Group, Head of the Green Transition Office at the Ministry of Economy of Ukraine.
We remind you that these points were made during the event "EU Taxonomy Changes the Rules of the Game: Ukraine Transforms the Public Investment System," which was organized by the Green Transition Office. We invite you to view the full recording of the event at the link: link.
Watch a short video of Andrii Kitura's speech below.
Published on