TARGET INDICATORS OF UKRAINE'S LOW-CARBON POWER SECTOR DEVELOPMENT

Abstract

Ukraine's commitments as a party to the Paris Climate Agreement to reduce greenhouse gas emissions with a gradual increase in ambition provides for low-carbon economic development with decarbonization of its sectors. The Ukraine’s power sector with a 20% contribution to total GHG emissions, due mainly to the fossil fuel combustion at thermal power plants and CHPs with a significant share of coal in the fuel balance, must make a transformation of its structure to reduce the carbon intensity of electricity generation with the expected increase in electricity consumption. The purpose of the article is to review Ukraine's current and prospective obligations regarding its low-carbon development and the formation of relevant target indicators for the development of Ukraine's power sector. The main obligations have been determined regarding low-carbon development contained in the Updated Nationally Determined Contribution of Ukraine with a 65% reduction in GHG emissions in 2030 compared to 1990, the National Economic Strategy for the period until 2030 with the declared achievement of carbon neutrality of the economy by 2060 and carbon neutrality of the energy sector with the maximum reduction of coal use laid down in the Energy Strategy of Ukraine until 2050. The introduction of a carbon border adjustment mechanism with taxation of electricity imported in the EU from 2026 may become a certain obstacle to the import of electricity when the electricity markets of Ukraine and the EU are united, and will become another factor in the need to increase the share of low-carbon and carbon-free generation.