Updated Framework Climate Law: Impact on Hromadas

For 25 years, Ukrainian Climate Network (UCN) has been advocating, on national and local levels, ambitious and efficient climate policy in Ukraine. The Network comprises 39 non-government organisations from 17 Ukrainian regions. Being aware of the importance of adaptation of Ukrainian cities and villages to climate change, we have analysed Ukrainian framework climate law, so that hromadas understand its clauses better and use it in their everyday life.

We remind you that in October 2024, Ukraine’s Supreme Council has adopted the Law № 3991-IX “On basic clauses of state climate policy”. This document has become a vast move towards national climate policy and eurointegration as well. The Law defines key objectives, among them climate neutrality by year 2050, reduction of greenhouse emissions by 65% before 2030, and implementation of adaptation measures to counteract climate change.

The adoption of the Law is among Ukraine’s liabilities within Paris Agreement and Agreement on Association with the EU. This step declares the will to conform Ukrainian legislation to European standards, particularly in regard to European Green Deal, and thus reinforce the cooperation with the EU, obtain access to European monetary tools, and get juridical reason to integrate into EU emissions trading system.

The Law, no matter how ambitious, has its advantages and faults, its implementation requires overcoming vast challenges, being dependent from transparent procedures of its embodiment, financing, and monitoring. The organisations from Ukrainian Climate Network have already published their common position regarding the Law in October 2024. In this article we analyse its clauses, their impact on hromadas, and how they can potentially transform Ukrainian climate policy.

General provisions: ambitions or necessity?

Chapter I of the Law sets forth basic objectives and principles of domestic climate policy. Until recently, Ukraine intended to turn climate neutral by 2060, according to Updated Nationally Determined Contribution. But adoption of the Law has synchronised this goal with ambitions of the European Union, as it has been proclaimed to reach climate neutrality before year 2050. Additionally, the Law stipulates reduction of greenhouse emissions by 65% until 2030 compared to 1990 level.

This objective, despite visually ambitious, in real life is technicality rather. According to Ukraine’s Ministry of nature protection and resources, Ukraine had cut its 1990 level emissions approximately 61% down by 2021. The process was natural, induced by almost 50% decline in industry after 1990, not by Ukraine’s ambitious climate policy. And yet the Law is a helpful tool for post-war reconstruction powered by principles of low-carbon development. Its implementation gives chance to integrate into European climate policy, including upgrade of energy infrastructure and transition to renewable energy sources. These were basically political claims and public demands – now they are taken down in detail in the Law. 

The Law sets up principles of inclusivity of climate policy, particularly gender equality and just transition. Though it should be noted that the Law disregards peculiar needs of handicapped or seniors, children, and homeless, who are especially vulnerable to climate change effects like heat waves and extreme weather. This issue will remain on the agenda for years because of prolonged Russian invasion. More about climate change and vulnerable social strata in 2020 research “Climate (in)justice” by Cedos and Ekoltava, sponsored by Heinrich Boell Fund. 

The public plays an important role in forming and implementing climate policy. Yet the Law mentions citizens and non-government organisations dimly, without detailed procedures of their potential participation, thus giving considerable space for improvement of the latter. In particular, there may be adopted transparent requirements for consultations and monitoring of fulfillment of climate strategies.

Phases of climate policy and the responsibles

Chapter II of the Law distributes duties regarded to climate objectives on national and local levels, and defines the role of science in the process. Special attention is payed to Ukraine’s Cabinet of Ministries, a coordination body for ministries responsible for planning and embodiment of climate policy. Synchronisation is a vast task, as in Ukraine different offices cooperate and exchange data rather poorly.

Chapter III of the Law lists general strategic documents – a ground for climate policy. They are:

• Long-term Ukraine’s strategy of low-carbon development;
• Ukraine’s nationally defined contribution to Paris Agreement;
• National plan on energy sector and climate;
• Strategy of adaptation to climate change;
• Sectoral program documents.

On the local level, the Law commits regional state administrations and territorial hromadas to create regional and local strategies of reduction of anthropogenic greenhouse emissions, and strategies of adaptation to climate change. They must be harmonised with national strategies and plans to guarantee the integrity of climate policy. Eventually, national objectives are defined on the national level, whereas achieved mostly on the local one. 

The Law sets a deadline for development of strategies: two years after Law’s article 14 takes effect, that is, before October 31, 2027. A considerable timespan for hromadas and regions, though challenges like poor financing and lack of experts may interfere. What is important too, the Law stipulates implementation of national system of monitoring and assessment of state climate policy – see Chapter V.

Financing of climate policy in Ukraine

The objectives declared by the Law are unfeasible unless there are transparent procedures of financing, and appointing the responsibles. Chapter IV of the Law sets forth financial and fiscal tools for cutting greenhouse emissions. These are some of them:

• Fiscal tool of Tax code, which helps to reduce greenhouse emissions – emission charge.
• Emissions trading system, which is to encourage enterprises to minimise emissions.
• Low-percentage loans for businesses, guaranteed by government.
• Grants, subsidies, and bank loans for citizens, to implement energy-efficient technologies.

Yet the Law does not stipulate the establishment of specialised National climate fund to finance adaptation to climate change and mitigation of the aftermath. EU countries like Germany, Sweden, Poland, and Estonia have created – successfully – these funds, which amass money from state budgets, international aid, and local sources. For Ukraine such a fund could become an important means for planning and implementing adaptation measures. As an option one may reorganise existing ecological funds financed from emission charges so that these resources fuel strategies of adaptation and mitigation.

Besides, Final provisions of the Law declare that article 21, regarding financing of above-mentioned measures, takes effect one year after martial law is cancelled. This adds considerable confusion, since some clauses of the article do not concern neither state nor local budgets, and financing is possible even in warfare. 

As of now, the use of local ecological funds is far from efficient, and substantial sums of money are buried for the sake of questionable advantages, whereas it could probably be much more reasonable to divert it to climate actions.

Innovative financial procedures

To successfully finance climate policy, one ought to turn to other countries’ experience:

• Swedish «Green bonds» allow to involve money for eco-projects through financial markets. Military bonds, being popular among enterprises and citizens, show that climate bonds may eventually become in Ukraine common, too.

Moreover, Ukraine has got to further actively the issue of tied-up and confiscated assets of russian federation, to use them for renovation of environment damaged by warfare. The idea is discussed on the global level, and adding climate aspect to reparations can become a worldwide precedent.

Financial and fiscal tools mentioned in the Law may form a ground for decarbonisation and adaptation, once the respective procedures are clearly set forth in subordinate laws. This includes:

• Transparent distribution of money.
• Monitoring (by the public as well) the efficiency of financial spendings.
• Well-defined integration of financial tools into regional and local strategies.

Climate adaptation for hromadas: a necessity or a stumbling block?

Weird weather and climate disasters in previous years indicate that adaptation must become a chief trend in climate policies of all countries. It means that cutting emissions is still necessary, but already insufficient to guarantee mankind sustainable development or even the survival itself. Ukraine’s Law «On the basics of state climate policy» stresses on the importance of adaptation measures that make sectors of economics less vulnerable to climate risks.

The Law commits local power bodies to develop regional and local strategies of adaptation to climate change, strategies and plans of greenhouse emissions reduction, and integrate them in general planning, as goes in article 14 of the Law. This means that regional and local strategies of development, plans of post-war renovation, and other documents that concern local planning must certainly include climate objectives. Though in real life hromadas may encounter the following challenges:

1. Poor funding
   Development and implementation of adaptation strategies requires vast resources. Local budgets are usually under-financed, whereas to access alternatives like grants or donor aid one has to dispose of specialised skills in order to submit applications.
2. Lack of expertise
   Efficient adaptation requires plausible data and projections on climate risks. Ukraine bumps on a lack of competent specialists, as there are 1469 hromadas in Ukraine, and all of them are to develop their own local strategies. The process which includes data collection, modelling, and assessment of risks may last for over half a year. At the same time, these strategies must be based on regional documentation, and its development requires time and resources, too.
3. Poor intersectoral cooperation
   Adaptation measures are often not agreed between sectors like agriculture, water industry, and health care, which is an obstacle for their fulfillment. To cope with this, there makes sense to think about online site for data exchange, like the one successfully launched in Estonia.
4. Zero support from the government
   The Law does not stipulate any definite assistance to hromadas. For example, there are no clear guidelines on how to develop climate plans and their integration in regional strategies. So it may delay the achievement of climate objectives and create a gap between national ambitions and local potential.

Despite all that, the Law exposes opportunities to cooperate with international donors, and this may counterpoise monetary shortage and lack of experts. Hromadas can, for example, turn to EU programs or international crediting. Additionally, it is possible to intensify cooperation with sister-cities. Even as of now, some hromadas fruitfully walk that way. 

Involvement of the public: what’s in the Law?

Engaging the public in the development of climate policy is one of the key aspects of transparent and effective management. The Law «On basics of state climate policy» mentions it in article 3 Chapter I and – in detail – in article 22 Chapter IV. Though, as there are no definite procedures of its implementation, numerous questions without answer arise.

State government bodies and local self-government must keep citizens informed and involve them in discussions over strategic documents. How they are to make it – the Law says nothing. Whereas Aarhus Convention ratified by Ukraine back in 1999 states clear requirements concerning the involvement of the public in actions of the kind, the Law on climate fails to illuminate this issue properly. 

The wordings of article 22 demonstrate the intention to involve the public, yet without comprehensive instructions this willingness risks to remain on paper. Instead, article 22 should be based upon – and even expand – the requirements of the Law «On public consultations» approved in June 2024. This Law emphasises that all the documents related to environment must undergo not only the stage of electronic consultations, but also that of public discussions. I.e., the Cabinet of Ministries and related ministries must certainly provide public consultations during the elaboration of all climate strategic documents. However, this demand does not concern to local self-government, thus, there emerges a risk that local climate strategies and plans won’t be discussed with the citizens, so public opinion remains out of account. Therefore, one should discuss the issue of including the demand of compulsory consultations of regional state administrations and local self-governments with the public in the Law «On basics of state climate policy». This move is especially reasonable, as the cooperation between authority bodies and the public in recent years has become more effective. At least this is the result of 2023 research by «Socioinform» agency ordered by Heinrich Boell Fund. 

Generally speaking, it is good that the involvement of the public has got a special mentioning in the climate Law, but the lack of detailed procedures is its shortcoming. 

In the future, the following measures should be considered:

1. Establishment of digital platforms for both national and local discussing of climate initiatives. In particular, one may inspect the possible adaptation of Estonian case of online consultations to Ukrainian realm.
2. Establishment of regional climate councils. This allows to involve local experts and public activists to the elaboration of strategies.
3. Investment, on state level, into educational programs. Urban and rural dwellers have to be fully aware of the jeopardies of climate change and the necessity to adapt to it.

Summary

Ukraine’s Law «On basics of state climate policy» creates an important judicial ground for integration of climate policy in all branches of economics and management. It harmonises Ukraine’s objectives with European standards, which is crucial for the association with the EU and green post-war renovation.

Yet the efficiency of the Law depends on detailed procedures of implementation, financing, and monitoring. Absence of National climate fund and poor support for hromadas imperil the achievement of proclaimed goals.

To be successful, the Law requires active involvement of the public, support from abroad, adjustment of local ecological funds, and launch of brand new financial tools like green bonds.

This Law may become a bridge to climate objectives, and to sustainable development and Ukraine’s post-war renovation as well, thus allowing our country to strengthen its advanced position in climate policy of the Eastern Europe.

Composed by: Yuliia Melnyk, director, NGO «Ekoltava», Councillor, UCN (2021-2024), campaigner, consultant on the development of ecological policies.