The revision of Ukraine`s national contribution to the Paris Agreement is supported by financial institutions and international funds – the World Bank, the EBRD, AIDS. Experts from the Economic and Prognostication Institute of the Ukrainian National Academy of Sciences and the Ukrainian Heinrich Bӧll Fund prove with their research that Ukraine needs all the technical and economic capacities to reach 91% renewable energy in all energy sectors by 2050. Today, the nuclear agreement between the NDC and the Paris climate agreement promises Ukraine to reduce greenhouse gas emissions by 60% compared to 1990. Ukraine was the first country to present the low-carbon development strategy in 2050, as proposed by the Paris Agreement. This strategy shows a 31-34% reduction in emissions compared to 1990. The Ukrainian climate network expects the new contribution to be as important as the objective set out in the strategy. Ukraine has stated that it will actively participate in current and future mechanisms of the international market, but its current target of reducing emissions does not take these market mechanisms into account. In reviewing its NDCs, Ukraine should explain its accounting intentions on the basis of both UTCATF and international market mechanisms, which would improve the transparency of its objective and allow for clearer comparisons with other NDCs. In May 2019, due to concerns about the financial viability of the existing aid system, legislation was signed to introduce a new system based on competitive capacity auctions for renewable energy (Mykhailenko et al., 2019); Savitsky, 2018). However, it is not yet known when the first auctions will take place (Mitsovych et al., 2020). Investors could still secure the “green tariff” if their projects have obtained land use rights, a grid connection contract, a building permit and an electricity purchase contract (AAE) by December 31, 2019 (KPMG Ukraine, 2019).
The tariff has been very successful and, in 2019 alone, domestic energy companies, foreign and Ukrainian investors have contributed $4.5 billion to the construction of wind and solar power plants to take advantage of the generous tariff (Prokip, 2020). However, the government had planned to buy only about half of the renewable energy that businesses could produce this year, and from March 2020, the government froze payments and attempted to retroactively reduce “green tariffs,” resulting in significant losses for businesses, jeopardizing the entire renewable energy sector (Kossov, 2020); Prokip, 2020). The starting point for effective action against climate change is understanding technological needs, but before investing in technologies that reduce emissions and adapt to climate change, it is essential to analyze a country`s specific needs. The TNA process is designed for this kind of in-depth analysis. In the meantime, the Cabinet of Ministers has signed a memorandum with renewable energy producers that provides that RES producers accept the terms of the voluntary restructuring of the green tariff. Rates for solar and wind installations will be reduced retroactively by 15% and 7.5% respectively for installations commissioned during the period 2015-2019 and by 2.5% for solar and wind power plants commissioned from January 2020 (Ukrainian government, 2020b). The Ukrainian authorities have committed to take all necessary measures to ensure timely payment to the guaranteed buyer and repayment of debts to RES producers who have agreed on the terms of the restructuring (Government of Ukraine, 2020b). On the basis of this assessment, recommendations are made as to how Germany could continue to assist Ukraine in participating in Article 6. Several entry points are identified, such as support for the capacity building of LMRs. B to ensure that it is appropriate and compatible with the requirements of Article 6; political, technical and financial assistance in the creation of a specialized air conditioning policy service