The Ministry of Energy, together with the State Agency on Energy Efficiency and Energy Saving of Ukraine and Ukraine Denmark Energy Center, have developed a bill providing for the creation of an energy efficient modernization fund to finance energy efficiency of enterprises through a carbon dioxide emissions tax.

According to a report on the website of the Ministry of Energy, the fund will be able to accumulate revenues from the tax on carbon dioxide emissions and provide enterprises with compensation for part of the loans for the purchase of energy efficient equipment.

The ministry clarified that the matter concerns the targeted use of revenues from carbon dioxide tax in the amount of approximately UAH 900 million per year, which are now sent to the general fund of the state budget. At the same time, the ministry emphasized that the issue of energy efficiency and energy modernization is becoming increasingly relevant in connection with plans to introduce a fiscal mechanism for regulating the import of carbon-intensive goods in the EU within the framework of the European Green Deal.

"In 2018, the tax on emissions of one tonne of carbon dioxide increased from 41 kopecks to UAH 10. As a result, revenues from this tax rose from UAH 50 million in 2018 to almost UAH 1 billion in 2019. These funds can become a source of financing for energy modernization of enterprises. The expected result is a reduction in energy consumption and, subsequently, carbon dioxide emissions, the creation of new jobs and increasing the competitiveness of the economy," acting head of the agency Kostiantyn Hura said.