To achieve climate neutrality by 2050, Ukraine needs to attract approximately EUR550 billion in additional investment on top of what it is currently investing in decarbonisation.
This was reported in a press release by the DIXI Group think tank, citing new data from the climate neutrality tool developed by the Stockholm Environment Institute (SEI) specifically for Ukraine as part of the ‘Green Agenda for Armenia, Moldova and Ukraine’ project, supported by the Swedish International Development Cooperation Agency (Sida).
“According to new data from the climate neutrality tool – a model developed by SEI specifically for Ukraine – achieving climate neutrality by 2050 is both realistic and feasible,” the centre noted.
As stated in the press release, SEI analysed the sectors with the greatest impact on greenhouse gas emissions in Ukraine and assessed their potential for transitioning to a clean economy. In particular, the energy sector has the greatest investment needs: around EUR311 billion. This is followed by transport – around EUR133 billion – and industry – EUR90 billion. The funding will not come solely from the public sector but will be shared between public and private entities.
SEI handed over the climate neutrality tool to the Green Transition Office and, in May, conducted training for civil servants on how to use it. Representatives of the Ukrainian government gained the analytical capabilities and expert knowledge necessary to assess decarbonisation pathways, plan green retrofits and support both Ukraine’s National Energy and Climate Plan (NECP) and Ukraine’s Low-Carbon Development Strategy up to 2050.
SEI’s main partner in Ukraine is the Green Transition Office, an independent advisory body under the Ministry of Economy, Environment and Agriculture of Ukraine.
The project is funded by the Swedish International Development Cooperation Agency (Sida). The tool covers 55 measures identified as the most effective for reducing emissions in Ukraine and enables policymakers and experts to create and compare various scenarios for emissions reductions, investment needs, GDP growth and new jobs.
“We have developed a practical tool that enables Ukraine to continuously analyse and update its transition pathway towards a clean economy. As new data becomes available and policy priorities change, the government can easily rerun the model and make informed decisions based on the latest data,” said Gotam Mutkumaran, an expert in energy system modelling at SEI Tallinn.