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Metallurgists ask Ukrainian officials to return to reality on decarbonization issues

Ukraine

The European Green Deal assumes a 55% reduction in greenhouse gas emissions by 2030. Ukraine went even further, announcing a 70% reduction in emissions.

Metallurgists ask Ukrainian officials to return to reality on decarbonization issues

Reducing emissions by 70% in the metallurgical industry of Ukraine by 2030, provided for by the national climate strategy, is a utopian scenario that undermines the negotiating positions of Ukrainian exporters with the European Union, says Oleksandr Kalenkov, President of Ukrmetallurgprom.

According to him, the Ukrainian mining and metallurgical complex will not be able to return to the indicators of 2005-2010, on the basis of which calculations of possible investments and forecasts for decarbonization of the country's economy are made.

There will not be a situation when the metallurgical industry of Ukraine was invested 30 billion euros annually, and the share of metallurgical products in the export structure exceeded 45% in the foreseeable future, Kalenkov stressed, adding that the expectations of officials are extremely high and unrealistic.

“Now we see three scenarios: optimistic, fantastic and utopian. It is difficult to choose from them, "said the head of Ukrmetallurgprom during a round table on the topic" Discussion scenarios of the Second Nationally Determined Contribution (NVB2) of Ukraine in the context of the European Green Deal. "

Ukraine declares a 71% reduction in emissions by 2030, which significantly worsens its negotiating positions with the EU and does not give the industry the opportunity to receive special conditions for the export of metal products to Europe. At the same time, the European Union itself is committed to reducing emissions by 55% by 2030.

Ukrainian metallurgical companies regard the European market as a home market, and after the EU introduces its environmental restrictions on the import of "non-environmentally friendly" metal products, losses will be very high. At the same time, the overstated obligations declared by Ukrainian officials will not allow Ukraine to receive any preferences in this market.

“As a result, the business will be left alone with these problems,” Kalenkov summed up.

МЕТАЛЛУРГПРОМ
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