Risks of deindustrialization in Ukraine due to decarbonization
The European Business Association warns of the risks of deindustrialization in Ukraine due to a new decarbonization program if funding sources for the transformation are not identified. Victoria Karpets, Manager of the Industrial Ecology and Sustainable Development Committee at EBA, emphasized that without proper funding, the program may fail, negatively impacting the country's industry.
According to her statement, there is a risk of attracting investments due to the lack of economic feasibility of the decarbonization program. Karpets noted:
“We must be candid: green investments may simply not come to Ukraine.” - Victoria Karpets
She also stressed the necessity of financial filling of the strategy to avoid plant closures and job losses.
The need for funding and instruments for implementation
The need for financing decarbonization is estimated at over €100 billion, highlighting the seriousness of the situation. Stanislav Zinchenko, head of the Industrial Ecology Committee at EBA, spoke about the necessity of funding, emphasizing that without these resources, decarbonization in Ukraine could turn into deindustrialization. Modernization of metallurgy, in particular, requires €12 billion to ensure competitiveness and environmental sustainability of production.
Environmental taxes, climate targets, and emissions trading systems (ETS) are important tools that must work for the successful implementation of the decarbonization program. Considering these aspects is critically important for the stability of Ukraine's industrial sector and for attracting investments in sustainable development.
The situation with funding the decarbonization program in Ukraine is extremely relevant against the backdrop of global environmental challenges and the need for a transition to sustainable development. The absence of clear funding mechanisms may lead to serious consequences for industrial infrastructure, which in turn will affect the country's economic stability. It is important for government bodies, business, and international partners to join efforts to create favorable conditions for investments in green technologies and industrial modernization.