Participants in working group on green metallurgy propose 46 projects worth $7.4 bln as part of preparation of Plan for Ukraine Facility
Participants in the sectoral working group on green metallurgy, working as part of the preparation of the implementation plan for the Ukraine Facility and the development of industry development strategies, discussed proposals from businesses regarding 46 projects totaling $7.4 billion.
According to a press release from the Ministry of Economy of Ukraine, the group's activities are coordinated by the Ministry of Economy with analytical and consulting support from the Kyiv School of Economics and moderated by McKinsey. More than 70 registered participants representing various sectors of the metallurgical complex, as well as associations, reform support offices, consulting companies, and banking institutions joined the work of the sectoral group.
Deputy Minister of Economy of Ukraine Oleksiy Sobolev said that the proposals received from business are important for the development of the metallurgy sector and will be taken into account when preparing the Plan.
"Metallurgy occupies one of the key places in the structure of the economy. Historically, Ukraine is among the 20 largest producers and exporters of metallurgical products, steel, cast iron and rolled products. Despite the significant negative impact of the war on the development of the industry, Ukraine's goals and ambitions remain competitive and are consistent with global trends. We have the potential to meet the needs of the green metallurgy market in accordance with global decarbonization goals," Sobolev said.
The deputy minister also said that EUR 39 billion from the EUR 50 billion Ukraine Facility will be aimed at maintaining macro-financial resilience in Ukraine. At the same time, this special investment instrument will allow investors to obtain financing through the EBRD, EIB and other international financial institutions. For these needs, the program provides EUR 8 billion to cover risks in priority sectors, which should stimulate the attraction of more than EUR 40 billion into the Ukrainian economy.
In total, after three expert discussions, 38 proposals were received from group members, 35 of which were proposed for consideration. In particular, the initiatives relate to reforming the green steel and energy industry (13), steel consumption levels (six), improving the recycling economy (three), improving logistics (eight) and financial resources (five).
Based on the results of the development of proposals, 15 proposed policies were recommended for implementation. They are aimed at harmonizing legislation, government support for industry development, improving the investment climate and government regulation. At the same time, 12 proposals require more detailed analysis, and seven initiatives were taken into account in the energy and logistics sectors.
As part of the sectoral group's work, the business submitted proposals regarding 46 investment projects worth $7.4 billion. The projects mainly relate to rolled steel (29), green steel (seven), resource recycling (five) and the mining complex (three). Green steel investment project proposals are primarily aimed at developing low-carbon production, introducing DRI/HBI technologies and producing value-added products, efficient resource recycling and recycling of production waste.
The format of the Plan does not provide for the inclusion of investment projects. However, their analysis and elaboration are necessary to determine priority subsectors for development. Relevant proposals will be submitted to the government and may be considered when developing a long-term sector strategy.
The creation of sectoral working groups is one of the activities of the Good Governance Fund project "Economic Hub: Sound PFM Policies and Vision for Growth", implemented with the support of the UK Government (UK Aid). The implementers of the project are Abt Britain and the Kyiv School of Economics.