18:00 23.02.2023

Author MARIA MEZENTSEVA

How the draft law "On responsible consumption" will help the "green" recovery of Ukraine

5 min read
How the draft law "On responsible consumption" will help the "green" recovery of Ukraine

Maria Mezentseva, People's Deputy of Ukraine, Head of inter-factional association "Bezzaive"

 

While the Armed Forces of Ukraine are liberating the occupied territories, Ukrainians are starting to rebuild the country step by step. In April of this year, the President of Ukraine, Volodymyr Zelenskyi, signed an order to create the National Council for the Recovery of Ukraine from the War. And in July, the international "Ukraine Recovery Conference" was held in Lugano, Switzerland, to ensure international support of this cause.

As Volodymyr Zelenskyi noted in his address, the Ukraine recovery plan is based on the "build back better" principle – to rebuild better than it was. For Ukraine, it is not just recovery to the pre-war state that is important, but "green" recovery – reconstruction based on the principle of sustainable development and conscious consumption.

According to the calculations of the Ukrainian government, the damage to the environment due to the invasion of the Russian army has reached almost 36 billion euros, and this figure is not final. And due to Russian terror, about 40% of Ukraine's energy infrastructure was damaged as of the beginning of November.

The call for conscious consumption is now coming from the state level because it is essential for restoring the energy system. The war with Russia only exacerbated the problem of excessive energy consumption in the country. According to the State Energy Efficiency Agency, the energy intensity of Ukraine’s GDP in 2020 was one of the highest in the world. Compared to other countries, Ukraine still uses excessive energy to generate the gross domestic product. This indicator needs to be reduced through sustainable state recovery approaches that consider the interests of producers, the public and the environment.

At the legislative level, Ukraine's "green" recovery policy is suggested by draft law No. 6544, "On responsible consumption of natural resources". The Verkhovna Rada registered it in the winter before the full-scale invasion of Russia. Then the draft law was approved by 23 MPs and supported by the head of the Verkhovna Rada Committee on environmental policy and nature use, Oleh Bondarenko.

Draft Law No. 6544 can become a crucial step towards joining the European Union because one of the prerequisites for this is the harmonisation of the legislation of Ukraine and the EU. And sustainable development is one of the main principles of the Treaty establishing the European Community. In addition, it also complies with the European Green Deal, the goal of which is a climate-neutral Europe by 2050. Last year, Ukraine expressed its intention to adapt its legislation and policies to the European Green Deal and started a dialogue on the "green" transition.

In this context, draft law No. 6544, "On responsible consumption of natural resources", can become a framework, as it defines the legal norms of conscious consumption. It lays the foundations for further changes in the rational use of natural resources. Thanks to such efforts, the Ukrainian government will be able to start promoting a culture of a conscious attitude to the environment and a responsible model of production and consumption.

The latest evaluations and approaches to developing consumer market regulation defined by the European Union, particularly the "New Consumer Agenda", served as an example for creating the foundations of Ukraine’s "green" policy. Therefore, the bill provides for a gradual "green" transition and mechanisms to ensure the availability of eco-friendly products.

The draft law amends five codes of Ukraine and several regulations of Ukraine, such as the Laws "On Environmental Protection", "On Alternative Energy Sources", and "On Protection of Consumer Rights". It will, therefore, apply to many market participants: consumers, producers and entrepreneurs, and various organisations (for example, public and scientific).

Here are examples of how the bill could affect each of these categories.

Consumers. There are practically no mechanisms in Ukraine that encourage Ukrainians to change their consumer habits and behaviour. There are some bans or restrictions, such as limited circulation of plastic bags, but there are no bonuses for conscious consumption. The bill will give impetus to change this.

Business. Thanks to draft law No. 6544, the state can introduce tax benefits or support for responsible producers and eco-enterprises, especially at the local level. Such a business will obtain the status of a participant in the National Project for Implementing the Rational Consumption Model. It should be noted that the draft law does not introduce specific rates for businesses for conscious entrepreneurship – the authorities will implement such changes later, depending on the circumstances.

Organisations. Scientific or public organisations will also be able to become participants in the National Project for Implementing the Rational Consumption Model. The authorities will encourage the development of products or solutions to reduce the negative impact of certain activities on the environment.

Draft Law No. 6544 suggests systemic changes to the Law of Ukraine "On Withdrawal from Circulation, Processing, Disposal, Destruction or Further Use of Low-Quality and Dangerous Products." As a result, we will define the main directions of state policy regarding the consumer market and the National Program for Implementing the Rational Consumption Model and its participants. Moreover, terms, criteria and indicators will be developed at the legislative level to determine the positive impact of technological solutions, goods, works and services, and business solutions on the environment and public health.

Currently, experts and the public are discussing what the recovery of Ukraine should be like, given the importance of implementing a "green" path. Draft law No. 6544 provides just the path and lays the foundation for implementing the policy of conscious consumption and rational use of natural resources. Thanks to its adoption, the Ukrainian government will be able to rebuild the country better than it was and implement the principle of "build back greener" – recovery with care for the environment.

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