Europe-Ukraine Energy Transition Hub (EUETH)
The Europe-Ukraine Energy Transition Hub (EUETH) aims to leverage the reconstruction of Ukraine’s energy sector through technological innovation and legislative and regulatory modernization to help bring about a prosperous and vibrant economy in the postwar period.
By bringing together an interdisciplinary team of experts, the EUETH aims to support the efforts of European and international institutions to strengthen Ukraine’s governance, regulatory frameworks, and market mechanisms in the field of energy, sustainability, and climate action. The initiative establishes a permanent research hub situated in Berlin and Kyiv, dedicated to continued research and policy dialogue on Ukraine’s energy transition.
The EUETH was first presented at a launch event in Brussels on 25 October 2023. Participants included high-level represenatives of the Ukrainian Government and the European Comission such as European Commission Executive Vice President Maroš Šefčovič and Ukraine’s First Deputy Prime Minister and Minister of Economic Affairs Yuliia Svyrydenko.
EUETH has conducted preliminary technical, financial, and legal studies which together form a strategy for a dynamic and sustainable energy sector in Ukraine. This strategy aims to provide guidelines for the design and regulation of Ukraine’s energy market that can bolster the country’s economy, facilitate its integration into European structures, shore up energy security and independence, and contribute to the climate goals of both Ukraine and the European Union.
The clean energy transition in Ukraine is vital to securing independent energy supplies. Many energy carriers and raw materials are still (indirectly) imported from Russia. A clean energy transition is a political, economic, and moral imperative. Without safety there can be no prosperity.
When Ukraine improves the transparency of its markets and bolsters the environment for investors, it will enjoy the benefits from increased foreign and domestic capital in search of safe and profitable investments. A secure legal framework and supportive regulatory and financial instruments will speed up reconstruction and deliver more broad-based prosperity through a vibrant economy.
The financial instruments with the most promise for a sustainable recovery and future growth include public-private partnerships, green bonds, transitions bonds, and de-risking measures for innovative technologies. They must be accompanied by independent, transparent, and objective agencies which are protected from political interference.
A just energy transition requires clear and sound legal instruments. This includes emissions trading schemes, guarantees of origin, green finance and investment regulations, energy-efficiency standards, strong buildings codes and circular-economy regulations, to mention a few. Independent bodies with State oversight should transparently draw up rules that are in the public interest and are enforced.
Agriculture is Ukraine’s largest economic sector, and the country is one of the world’s greatest exporters of many staple foods. This can be made even more productive by tapping its potential to produce energy from biomass and agricultural waste. The required technical solutions will need favorable regulatory and legal frameworks, as well as liquid markets and new infrastructure.
As Ukraine expands its renewable energy generation, it can also look to produce hydrogen and its derivatives, as fuels and energy storage mediums. The pipelines built for the transit of natural gas from Russia to Europe can be potentially adapted for hydrogen transport.
Ukraine has a long history of complex heavy industry and the steel and iron industry remains the country’s second-largest sector. Ukraine can leverage this experience to grade towards cleaner production for domestic use as well as export. This will require technological as well as regulatory and financial innovations. The government has, for instance, started a Coalition for the Green Recovery of the iron and steel sector, which aims to develop a pipeline of investment projects, address financial and policy issues, and facilitate coordination among stakeholders.
The studies were prepared by a consortium of Ukrainian, European, and international partners including the BBH Group, GOLAW, the Institute for Climate Protection, Energy and Mobility (IKEM), the Yaroslav Mydryi National Law University Kharkiv and Horizon 2.
Launched in collaboration with:
IKEM and its partners would like to thank the following contributors:
Dr. Daniel Hamilton (Johns Hopkins University), Dr. Andriy Konechenkov (Ukrainian Wind Energy Association), Oleksandr Kovalenko (Ukrainian Energy Exchange), Viktoria Kovalenko (dixi group),Prof. Joachim Müller-Kirchenbauer (TU Berlin), Philipp Offenberg (Breakthrough Energy), Prof. Dr. Rainer M. Speh, Peter Sweatman (Climate Strategy & Partners) and Kucher Serhii Vladyslavovych (PJSC UkrHydroEnergo).
IKEM is legally responsible for the contents of this website. The views expressed herein do not necessarily reflect the views of all authors, contributors, or funding bodies.