Without renewable energy, Ukrainian producers will lose the European market

Ukrainian government officials can say endlessly that green energy is an unbearable burden on our economy, but in less than three years the EU will introduce a cross-border carbon tax on goods imported into Europe.

And all those who want to have trade relations with the European Union will have to prepare energy passports for export products, which should reflect the ratio of energy use from alternative sources and traditional ones.

It is planned that at first you will have to pay 32 euros per ton of CO2, and then the price will increase every year and reach 350 euros. It is not yet clear how this tax will be levied. But the essence is already clear: if in the production process of goods, the company burned enough fossil fuels, releasing a large amount of carbon dioxide into the environment, then to bring such goods to the European market, it will have to pay a fee. The European Union accounts for 50% of Ukraine’s exports.

“By relying now on coal energy, the Government is digging a deep hole for our exporters,” said Andriy Grinenko, CEO of Clear Energy company. – After all, Ukrainian coal-fired power plants, which produce about 40% of all electricity, according to the report “Powering down coal” of the financial analytical center Carbon Tracker, are the dirtiest and most inefficient in the world. At the same time produce the most expensive electricity. And Ukrainian producers will pay for it. ”

Europe, which is very concerned about climate change, has long ago set strict standards for its producers. Since 2005, they have been forced to buy greenhouse gas emission allowances and compete with foreign producers who do not have such obligations. Of course, the cost of European products is much higher compared to goods produced in countries where governments do not care about the environment and global warming.

The idea of a carbon fee (tax) is very popular within European authorities and local businesses. Firstly, it will improve the conditions for their producers. Secondly, it will force other countries to also develop alternative energy and reduce emissions.

“Now Ukraine is facing a choice. Further to oppress “greens” and to burn coal and other fossil fuels, hoping that in three years our production will become so competitive that it will easily cope with additional financial barriers, or to develop renewable energy. Everyone who sees himself in the European market must decide today ” – Andriy Grinenko says.