Parliament establishes decarbonization fund: tax on CO₂ emissions to fund the initiative
The Verkhovna Rada has voted to create a fund for decarbonization and energy-efficient transformation as part of a special fund of the state budget of Ukraine, according to draft law No. 8433, which garnered the support of 299 lawmakers on Tuesday.
It is created according to the same principle as the State Road Fund, only it will be replenished with the environmental tax levied on enterprises for emissions of CO₂ (carbon dioxide) into the atmosphere.
The idea is to introduce a targeted use of this money and reinvest it specifically in measures to reduce CO₂ emissions.
"It is about the implementation of programs that should increase the energy efficiency of households, utility companies, public buildings, micro, small and medium-sized businesses. Another direction is the introduction of energy service and the development of decentralized energy production and storage systems," explained the Vice Prime Minister. Minister of Community Development, Territories and Infrastructure Oleksandr Kubrakov.
Fund money will also be used to increase the use of renewable energy sources and alternative fuels.
In 2020, when the Decarbonization Fund was first presented, its budget was forecast at the level of UAH 1.35 billion ($50 million) per year.
The Decarbonization Fund will start operating in 2024.
In 2021, President Volodymyr Zelenskyy announced that Ukraine is going to reduce greenhouse gas emissions by 65% by 2030.