The European Green Deal plans to reduce greenhouse gas emissions in the European Union by 40% by 2030. And by 2050 - to reach zero greenhouse gas emissions.
The plan provides for the introduction of an environmental duty on imports of products into the EU, depending on the amount of CO2 emissions in the process of their production. The mechanism is likely to be launched no later than 2023.
According to GMK Center, the introduction of Carbon Border Adjustment could cost Ukrainian exporters € 566 million a year. For Ukrainian metallurgical exporters alone the figure will reach € 379.9 million.
To successfully participate in the "Green" agreement, the countries must develop a development road map with the EU.
"In order to successfully involve Ukraine in the European initiative, it is necessary to jointly develop a" road map "with the EU, taking into account the priorities of economic development and the state of Ukraine's economy. The implementation of these measures requires additional investments, the volumes and sources of which have not yet been determined.” Said Olga Buslavets, the Ukrainian acting minister of energy in late 2020.
Participation in the European Green Deal will no doubt create many opportunities for private companies to develop Ukraine´s green infrastructure and production capabilities. We expect that external financing via instruments controlled by the EU will become available for such companies as the development road map is created and the NGD project moves forward. Feel free to contact Leinonen Ukraine if you are interested in establishing a company in Ukraine.
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