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Ukraine Policy on Climate Change and Kyoto Protocol Implementation Heorhiy Veremiychyk Ministry of Environmental Protection of Ukraine Japan Carbon Investors Forum March Tokyo 2005 Legal Framework for JI in Ukraine 1. Ukraine is Party of UNFCCC. 2. Kyoto Protocol is ratified by Ukrainian Parliament on 4 February 2004. 3. Ministry of Environmental Protection of Ukraine responsible for development and implementation Climate Change Policy in Ukraine and implementation of UN FCCC and Kyoto Protocol according the Decree of the Ukrainian Government. Institutional and Legal Framework JI Activity in Ukraine (1) Inter-ministerial Commission of Climate Change coordinates the climate change Policy on national level and consists of 30 members. Chairman of the Inter-ministerial Commission of Climate Change is Vise-Prime minister of Ukraine. First Deputy of Commission Chairman is Minister of Environmental Protection of Ukraine. Institutional and Legal Framework JI Activity in Ukraine (2) Members of the Commission are Deputies of the Ministers and Deputies of Heads of the State Committees, members of Ukrainian Parliament, representatives of National Academy of Science and NGOs. Decision of the Inter-ministerial Commission on Climate Change adopted procedure for JI projects approval (September 2004). Institutional and Legal Framework JI Activity in Ukraine (3) Final decision of the Cabinet of Ministers of Ukraine approving JI procedures is expected in March 2005. 18 JI projects were submitted to different carbon funds and received Letters of Endorsement. Projects directed for energy conservation, biogas and mine methane utilization. Procedures for JI Projects Approval (1) 1. Entity which would like to implement a JI project submits to the Ministry of Environmental Protection of Ukraine the Project Idea Note with request for Letter of Endorsement. 2. Ministry studies proposal and if there is no objections gives the Letter of Endorsement. Procedures for JI Projects Approval (2) 3. Owner of the entity develops Project Design Documents (PDD) which obviously includes: Baseline Study, Calculation of Emission Reduction, Monitoring Plan, Environmental Impact Assessment, Project Finance Plan. Procedures for JI Projects Approval (3) 4. To get the Letter of Approval for the project it is necessary to submit to Ministry Project PDD and Validation Report prepared independent Consultant. 5. Ministry submits the Project PDD to the JI Steering Committee (JISC) for approval. JISC consists of the Inter-ministerial Commission of Climate Change members (key ministries). Procedures for JI Projects Approval (4) 6. After approval of the PDD by JI Steering Committee Minister of Environmental Protection of Ukraine signs the Letter of Approval. 7. Entity signs the ERUs purchase agreement with Facility Company of the Partner Country. Procedures for JI Projects Approval (5) 8. Project owner is responsible for implementation, monitoring and verification of the project. 9. Verification of the project is provided by independent Company. 10. Emission reductions are transferred through the National Registry. Green Investment Scheme in Ukraine Government is interested to implement the GIS in Ukraine. Estimated AAU surplus 200-300Mt CO2e per year in the first commitment period 2008-12. There is common understanding among the stakeholders concerning the opportunities to attract investments through GIS. There is also understanding of the need to establish needed infrastructure and fulfill the requirements for AAU trading (Track 1). Eligibility (1) The main goal for JI activity in Ukraine is to achieve Track 1 eligibility. TACIS Capacity Building Project “Technical assistance to Ukraine and Belarus with respect to their global climate change commitments” is helping with: National GHG Inventory System in Ukraine, National Registry, Revision of the annual GHG inventories 1990-2003 Eligibility (2) Main elements of the national inventory system are being established. UNFCCC in-country review of the Ukrainian GHG inventory 1990-2003 is scheduled for September 2005. In 2005 Ukraine will study possibility of using the European experience for establishing the national registry. What steps are needed to set up GIS? Need decision of the Cabinet of Minister on establishing the GIS. Need decision on how many AAUs to sell. Need an Action Plan of GIS implementation It could be possible for the GIS system to use State Environmental Protection Fund. Right now the volume of AAUs to be sold is under discussion. Important tasks for Ukrainian Government It is important for Ukraine to be prepared for UNFCCC inventory in-country review in September 2005. By end 2005 it is important to clarify the position on the national registry. To clarify the “greening” of investments, a portfolio of projects is needed. It is important for Ukrainian government to have preliminary discussions with potential GIS partners Possibly the first deal will be a pilot one, in small amount of AAUs. The Field for Cooperation Energy conservation and energy efficiency, biogas and mine methane utilization, renewable sources of energy. Total power generation capacity in Ukraine is near 52-54 million mWt, 40 mil. mWt – thermal power, 12 – 13 Mil. mWt - nuclear power, 1-2 mil. mWt - hydraulic power The Condition Thermal Station of Ukrainian Power Economy Vast majority of the power plant was installed in 60-70 years last century and are obsolete for today. 97% of the power plants have became exhausted their lifetime resource (100 thousand hours). 78,8% of the power plants have baled out their maximum lifetime resource (170 th.h) The Condition Thermal Station of Ukrainian Power Economy 30% of the equipments of the transformer stations and lines of high-voltage transmission have used up their lifetime resources. The efficiency of the majority power plants is 28-30% and it failed down on some of them to 24 % (It is designed value -36%). A lot of Problem – a Lot of Job The protection oh the climate of Earth Planet, the transition to sustainable development are perspective fields for cooperation. Gratitude Thanks a lot to the Government of Japan for invitation to participate in “The Kyoto Mechanism-Japan Carbon Investors Forum”. Good health and successes to everybody!