ukrainian market readiness proposal
TRANSCRIPT
Ukrainian Market Readiness
Proposal
Preparation phase
Outline of progress
PMR PA 7, Marrakesh
22-23 October 2013
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Outline of Presentation
Overview
• Key background information on Ukraine
• MRP Objective and Focus
• MRP Development Process
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FACT BOX
Greenhouse Gas Emissions incl. LULUCF (MtCO2e) excl. LULUCF (MtCO2e) Change from base year (1990)
394 401 -57
Latest reporting year
2011
UNFCCC ratification status and date
Date of signature: 11 Jun 1992 Date of ratification: 13 May 1997 Date of entry into force: 11 Aug 1997
Kyoto Protocol ratification status and date
Date of signature: 15 March 1999 Date of ratification: 12 April 2004 Date of entry into force: 16 Feb 2005
Flagship climate change legislation
National Action Plan on Implementation of the KP, 2005
Flagship energy legislation Ukraine’s Energy Strategy to 2030
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National Action Plan on Implementation of the KP Main tasks
Improve the national GHG emission and absorption inventory system,
Create favourable conditions to implement the "flexible mechanisms" of the Kyoto Protocol in Ukraine,
Prepare and publish national reports on climate change issues,
Develop National plans on adaptation and climate change impact mitigation,
Evaluate GHG emission reduction potential to 2020, strategic forecast and the assessment of climate change impact on various economy sectors, on the population and ecosystems,
Create a data bank on ecologically safe technologies that allow reducing emission volumes and increasing GHG absorption volumes,
Implement measures on training and qualification improvement within the scope of UNFCCC and its Kyoto Protocol, for State employees, preparing personnel, and informing the public on climate change issues.
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National Energy Strategy
Broad objectives create favorable conditions for meeting energy demand, increase energy security, reduce the impact of the energy sector on the environment, reduce the cost of energy production, integrate Ukraine’s energy system into the European energy system, expand hydro, nuclear and renewables, decrease GDP energy intensity through energy efficiency and
reduction of transmission losses, and it calls for a 50% reduction in energy intensity by 2030.
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• Reduce dependence on international energy sources
Reduce intensity of energy use
Increase part of domestic energy and fuels
• Stay internationally competitive by increasing production efficiencies
Attract investment to renew industrial facilities
• Diversify the economy to reduce impact of external shocks
• Use Agriculture as growth driver for the economy
Fundamental Economy Strategy
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MRP Objective and Focus
(A) Develop a GHG emissions monitoring, reporting, and verification system in Ukraine as a first step towards the ETS, and
(B) Develop assessments to support an informed decision making process on the use of market based instruments for Ukraine.
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To support Ukraine’s Energy and Low Carbon Policies, the MRP will have two main objectives
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Two Primary Reasons for Delaying the MRP
The legislative process which was initiated by the
SEIA with draft MRV law which was submitted to Ministry of Environment and Natural Resources and was planned to be reviewed and submitted to other governmental bodies for review and submission to the Parliament later this autumn. So far this law is still reviewing and the consultation process on this law is starting.
Ongoing work financed by Donor Countries and IFIs which results should be an integral part of MRP.
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Ongoing work financed by Donor Countries and IFIs
Project Team
‘Capacity Building for Low Carbon Growth in Ukraine’ is still in development stage and major deliverables as well as consultations are scheduled for this December 2013 and only after completion of several tasks and finalization of deliverables, this work can be used and incorporated into draft MRP.
UNDP
‘MRV for Enterprise-Level GHG Emissions in energy sector in Ukraine’ has being delayed because of the selection of local consultant and only in May this work has commenced and main phase is planned in November 2013.
USAID
Preparedness for Emissions Trading in the EBRD Region (“PETER“) which is concentrated on Ukraine and Kazakhstan has only commenced in June 2013 and schedule is finalized on tasks and deliverables only in Oct 2013. Deadline – June-July 2014
EBRD
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Design of MRV system
Draft MRV Law provides authority to mandate MRV for GHG emissions
Secondary and complementary legislation is necessary 1. Procedure for realization of MRV of GHG emissions (monitoring,
reporting, verification);
2. Procedure for accreditation of independent expert organizations
that carry out verification of GHG emission monitoring reports;
3. Procedure for state registration of installations carrying out GHG
emissions;
4. Procedure for state control over MRV of GHG emissions.
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MRV system – Focus on electricity and industry
Electricity and industry are included, because: They have easily identifiable, large point sources which make
up most of the emissions in the sector; They release a significant portion of GHG emissions (17%, 25%
respectively); The reduction opportunities in these sectors are numerous
and largely profitable; They has ambitious targets for decreasing dependency to
exported fuels and increasing competitiveness, respectively; They are subject to many regulations and reporting
requirements, so this will not create significant incremental burden.
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Analysis to Support Development of Carbon Pricing Instruments
The cap and trade options, and other existing direct carbon pricing mechanisms
ETS vs. Carbon tax
The transition from one instrument to another
The key challenges of introducing ETS as opposed to other policy instruments
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Timing
Ukraine’s MRP submission Time
Zero Draft MRP for peer-review Feb 2013-March 2014
Draft MRP May 2014
Final MRP October 2014
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State Environmental Investment Agency
Address : 35 V. Lipkovskogo Str., Kiev , 03035 Contacts: Telephone: 380 44 594-91-11 Fax: 380 44 594-91-15 E-mail: [email protected] Press service: Telephone: 380 44 594-91-09 Fax: 380 44 594-91-15 E-mail: [email protected]
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Thank you for your attention!
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