To achieve climate neutrality by 2050, Ukraine needs to attract approximately EUR550 billion in additional investment beyond what it is currently investing in decarbonization.
This was reported in a press release by the DIXI Group think tank, citing new data from the Climate Neutrality Tool, developed by the Stockholm Environment Institute (SEI) specifically for Ukraine as part of the “Green Agenda for Armenia, Moldova, and Ukraine” project with support from the Swedish International Development Cooperation Agency (Sida).
“According to new data from the Climate Neutrality Tool—a model developed by SEI specifically for Ukraine—achieving climate neutrality by 2050 is both realistic and feasible,” the center noted.
As stated in the press release, SEI analyzed the sectors that have the greatest impact on greenhouse gas emissions in Ukraine and assessed their potential for transitioning to a clean economy. In particular, the energy sector has the greatest investment needs: approximately EUR 311 billion. This is followed by transportation—approximately EUR133 billion—and industry—EUR90 billion. Funding will not come solely from the public sector but will be shared between public and private entities.
SEI transferred the Climate Neutrality Tool to the Green Transition Office and, in May, conducted training for government officials on its use. Ukrainian government representatives gained the analytical capabilities and expert knowledge needed to assess decarbonization pathways, plan for green reconstruction, and support both Ukraine’s National Energy and Climate Plan (NECP) and its Low-Carbon Development Strategy through 2050.
SEI’s main partner in Ukraine is the Green Transition Office, an independent advisory body under the Ministry of Economy, Environment, and Agriculture of Ukraine.
The project is funded by the Swedish International Development Cooperation Agency (Sida). The tool covers 55 measures identified as the most effective for reducing emissions in Ukraine and enables policymakers and experts to create and compare various scenarios regarding emissions reductions, investment needs, GDP growth, and new jobs.
“We have developed a practical tool that allows Ukraine to continuously analyze and update its transition path to a clean economy. As new data becomes available and political priorities shift, the government can easily rerun the model and make informed decisions based on the latest data,” said Gotham Mutkumaran, an expert in energy system modeling at SEI Tallinn.
CLIMATE NEUTRALITY, DECARBONIZATION, DIXI Group, INVESTMENTS, SEI
The European Union has invited the Ukrainian government to determine specific targets for achieving climate neutrality by 2050, 10 years ahead of schedule.
“The EU welcomes the submission of an updated NDC with increased ambition and encouraged Ukraine to continue developing concrete milestones to achieve Ukraine’s climate neutrality by 2050 and to align its sectoral strategies with that objective,” a press release by the EU Delegation to Ukraine, following the second meeting of the working group within the framework of the dialogue on Green Deal between Ukraine and the EU, reads.
The EU reiterated the need for Ukraine to pursue reforms, and strengthen administrative capacities to implement the commitments of enhanced NDC and possibly achieve additional emission reductions.
“The EU underlined the need for rapid adoption, implementation and enforcement of Ukraine’s key environmental legislation (Waste management, Industrial Emissions, Environmental Control, Emerald network) and of the National Forest management Strategy,” the message says.
Deputy Director General NEAR and Head of the Support Group for Ukraine (SGUA) Katarína Mathernová signalled EU’s readiness to support further Ukrainian efforts, including through financial assistance, for setting up a robust Ukrainian climate governance based on long-term climate neutrality objectives which would guide policies and the “whole-of-the-economy” green transition.
As reported, in accordance with NDC, Ukraine should reduce greenhouse gas emissions by 65% of the 1990 level by 2030, and achieve climate neutrality by 2060. Such goals were set and approved by the Cabinet of Ministers decree of July 30, 2021.
