Ukraine urged to end fossil fuel subsidies

Ukraine urged to end fossil fuel subsidies

18.06.2012, Kyiv - At today’s opening of the EU sustainable energy week in Kyiv, environmental groups are asking the Ukrainian government and the EU to end subsidies for fossil fuels and instead provide much-needed support for renewable energy.

"We create this global movement showing that people want their taxes to be invested in sustainable energy, education, science, health and the protection of forests, rather than coal, - says Monchak Olga, Ukraine coordinator. - Today in Rio, Sydney, London and New Deli we’ll deliver more than one million signatures to decision-makers asking for an end to subsidies for fossil fuels. That coincides with the United Nations Conference on Sustainable Development in Rio de Janero.” [1]


Україна отримує гроші на вугільну галузь від міжнародних банків


The uneven development of the energy sector is particularly acute in Ukraine, where currently less than half of one percent of all Ukraine’s power is produced from renewable energy sources. Moreover, the Government of Ukraine plans to rely on fossil fuels in future as well. The project of the revised Energy Strategy of Ukraine till 2030 foresees increase in consumption of fossil fuels. The coal extraction is planned to be increased from 51 to 75 mln of oil equivalent in 2030. [2]


While Ukraine’s coal industry has traditionally proven unprofitable, the government continues to provide significant annual subsidies – in 2010 coal subsidies reached nearly 730 million euros, approximately 2 percent of total budget expenditures and four times more than in 2001.


Andriy Martynyuk, head of the NGO Working group on climate change, said, "Subsidies for fossil fuels extraction are the main reason for the slow development of clean energy. Budgets of even the richest countries can’t simultaneously maintain "dirty" energy from coal, oil and gas that is harmful for the climate and in parallel finance the development of renewable energy and energy efficiency."


The call to end fossil fuels subsidies echoes the conclusions of a 2009 G20 summit, again reaffirmed by the G8 in 2012, whereby countries agreed to "gradually withdraw from the medium-term subsidies to inefficient fossil fuels that encourage wasteful consumption." Decreasing subsidies will help to have economic, environmental and energy-saving benefits.[5]


"International public banks, such as the European Bank for Reconstruction and Development (EBRD) should stop financial support to the coal related projects – says Vladlena Martsynkevych, representative of the CEE Bankwatch Network. - The facts show that the EBRD’s cumulative investments in fossil fuels in countries of operations of the bank are actually increasing. EU as a major shareholder of the Bank, should influence this situation."


Громадяни України переконують використовувати гроші на сталу енергетику

More examples from EU provide inspiration that the environmentally harmful energy sources can be replaced. For example, in 2030 Denmark plans to produce 60% of its energy on renewables. Austria and Germany plan to increase green energy to 40-50%. In May this year Germany has beaten the record - 50% energy was provided by solar energy [2].


Video from the event:

Contact Person:

Vladlena Martsynkevych,

National Ecological Centre of Ukraine/CEE Bankwatch Network

066 731 26 57


Olga Monchak, - Ukraine

096 111 25 44


Notes for editors:

[1] This campaign is also supported by hundreds of thousands of users of social network Twitter, sending a message with the hash tag # EndFossilFuelSubsidies.

[2] Draft revised Energy Strategy for Ukraine till 2030: ]]>]]>

[3] ]]>Problems of Ukraine’s coal sector and greenhouse gas emissions from coal mining and consumption]]>: ]]>]]>

[4] Tug of War: Fossil fuels versus green energy at the EBRD: ]]>]]>

[5] IEA analysis of fossil-fuel subsidies: ]]>]]>


More information on the topic:

NGO Working Group on Climate Change Site ]]>]]>

NECU Site ]]>]]>

CEE Bankwatch Network site ]]>]]>

350 Site on subsidies in Russian ]]>http]]>]]>://]]>]]>world]]>]]>.350.]]>]]>org]]>]]>/]]>]]>russian]]>]]>/]]>]]>subsidies]]>]]>/]]>   and international site ]]>http]]>]]>://]]>]]>endfossilfuelsubsidies]]>]]>.]]>]]>org]]>]]>/]]>

On Twitter wave and delivery of petitions ]]>http :/ / world .350. org / russian / twitter -]]> волна /

News from activists in Rio on KlimatInfo ]]>http :/ / www. climateinfo. org. ua / content / golos - ukrajnskoj - molodi - na - samiti - zemli - v - rio]]>


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