Vitrenko proposed to finance RES electricity generation through green bonds and CO2 tax
Acting Minister of Energy Yuriy Vitrenko proposed to finance renewable energy (RES) generation in the long term through a raise of tax on carbon dioxide (CO2) emissions, and in the short term through green bonds.
That was announced on February 18, 2021, by the press service of the Ministry, after a meeting of the Acting Minister with representatives of RES associations.
“In the long run, such a solution as increase of the tax on CO2 emissions and using these funds to compensate the difference to producers of "green" electricity is being worked out. Currently, this Carbon Tax in Ukraine is ten times lower than in the European Union, while carbon emissions are the largest. This will be true: those who pollute the environment and negatively affect climate change should pay. Those who make living conditions better and the environment cleaner ought to receive compensation,” Vitrenko said.
At the same time, according to Vitrenko, green bonds are as a short-term measure, will help to solve the problem of already accumulated debts to RES electricity producers, and to partially compensate the difference between the "green" tariff and the actual electricity market price in 2021.
ExPro reference: Currently, RES electricity generating facilities are financed through the sale of their electricity by the SE Guaranteed Buyer, and the deficit funds at SE Guaranteed Buyer was caused by the difference between the actual market price of electricity and the "green" tariff is compensated by the power system operator NEC Ukrenergo via inclusion of that difference into the national electricity transmission tariff.