Diversification of energy sources through the use of alternative fuels.
Amending the legislation.
Draft Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding Promoting the Use of Liquid Biofuels (Biocomponents) in the Transport Sector”.
In March 2019, BRDO experts analyzed the biofuels market, and in October 2020 — the motor fuels market, and developed a draft law of Ukraine. The proposed regulatory changes include:
- establishing a mandatory share of liquid biofuels (biocomponents) in the volumes of motor fuel sales — at least 2% in the total quarterly volumes of fuel sales starting from January 1, 2022, with its gradual increase to 8.5% starting from January 1, 2029;
- ensuring the compliance with sustainability criteria in biofuel production;
- providing the opportunity of selling fuels both with biocomponents and without them to final customers;
- reporting on compliance with the share of biocomponents will be required once a quarter.
Why is this essential for Ukraine?
Biofuel production could reduce the problem of petroleum imports, but its domestic production is declining. Currently, the share of biocomponents is about 0.5% in the structure of motor fuel consumption. This situation is caused primarily by the lack of incentives for biofuels production and consumption.
Also, Ukraine should implement the provisions of the Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources to ensure that Ukraine fulfills its international obligations regarding the share of energy from renewable sources.