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2017-10-17 01.03.13 1The Expert Group Meeting (EGM) “Resource Efficient and Cleaner Production Policy: Fostering Green Industries in Ukraine” within UNIDO support and UNIDO Project framework “Promoting the Adaptation and Adoption of Resource Efficient and Cleaner Production (RECP) through the Establishment and Operation of a Cleaner Production Centre (CPC) in Ukraine” was held on 12 October 2017 in Kyiv, Ukraine. The Resource Efficient and Cleaner production Centre acted as the EGM organizer and coordinator.

The EGM overall objective was to reach a common understanding of Resource Efficient and Cleaner Production and the policy development in the Ukrainian context. The EGM aimed to discuss and agree on requirements for the implementation of Resource Efficient and Cleaner Production in Ukraine to facilitate a regulatory framework in order to support green industrial development.

The EGM showcased international policies and instruments aiming to foster Resource Efficient and Cleaner Production and green industries such as the Sustainable Industrial Development Goals and EU policies and identified drivers, requirements and opportunities for the implementation of Resource Efficient and Cleaner Production in Ukraine.

The following topics were covered during the EGM: 

  • Analysis describing the environmental regulatory framework in Ukraine
  • Status-quo of natural resource use and decoupling in Ukraine
  • Analysis on international policy initiatives in the area of Resource Efficient and Cleaner Production
  • Partnerships and financial mechanism
  • Best practices on Resource Efficient and Cleaner production in companies in Ukraine
  • Drivers and requirements to foster Resource Efficient and Cleaner Production in Ukraine.

The meeting began with welcome speeches delivered by the following officials and foreign representatives: Natalia Trofymenko (Deputy Director of the Department for Strategy and European Integration, Head of the Division for Strategy Planning and Environmental Policy, Ministry of Ecology and Natural Resources of Ukraine); Olena Levchuk (Deputy Director of the Department for State Investment Projects and Development Support, Head of the Division for Support Investment Projects with IFIs and Foreign Countries, Ministry of Economic Development and Trade of Ukraine); Volodymyr Avramenko (Deputy Director of Industrial Policy Department, Head of the Division, Ministry of Economic Development and Trade of Ukraine); Nicolas Guigas (Deputy Director of Swiss Cooperation Office in Ukraine); Florian Kohlfürst (Deputy Head of Mission of the Austrian Embassy); Ihor Shylovych (Director, Resource Efficient and Cleaner Production Centre).DSC 0100 1

Olena Levchuk: “We are always grateful to UNIDO for the projects they do. We never stop trying to attract similar funds from other donor organizations. While processing the EU Strategy till 2018-2010 and adapting it to Ukrainian context we are planning to add measures focused on resource and energy efficiency.”

Nicolas Guigas: “I think it’s very important because it’s a share of different experiences, coming from scientific and industrial companies who use RECP. I think this meeting is interesting”.

Florian Kohlfürst: “We hope that today’s event will also contribute a little bit to realizing some of that potential. And we’d also like to encourage Ukrainian authorities to make full use of RECP Centre as far as possible. The services that the Centre offers to Ukrainian companies, for instance, are definitely very much needed in this country and the companies present here are beginning to realize that”.

The structure and methodology of the EGM consisted of 3 sessions.

The first session “Policies and instruments for pursuing Resource Efficient and Cleaner Production” was targeted on the exchange of viewpoints on existing and planned steps of Ukrainian government to greening industries based on RECP concept and its key principles. Apart, this session discussed national policy fundamentals on sustainable growth within pan-European and world contexts.

Natalia Trofymenko, Deputy Director of the Department for Strategy and European Integration, Head of the Division for Strategy Planning and Environmental Policy at the Ministry of Ecology and Natural Resources of Ukraine, in her speech “Strategy of National Environmental Policy of Ukraine” reported that RECP concept was an important focus aspect within the framework of the Strategy of National Environmental Policy of Ukraine 2030 being elaborated by the respective Ministry of Ukraine.

DSC 0191 1Volodymyr Avramenko, Deputy Director of Industrial Policy Department, Head of the Division at the Ministry of Economic Development and Trade of Ukraine, made a presentation “Resource efficiency – one of the priorities for industrial policy strategy”. He marked that resource efficiency was the key to solving most existing problems in Ukrainian industry, such as bad competitiveness, morally and physically obsolete fixed assets, lack of investments, etc.

Mirko Lieber, the expert of Economic University of Vienna, offered a showcase presentation “Resource Efficient and Cleaner Production: Polices and Instruments to foster Green Industries in Ukraine” with a keynote on substantial analysis of RECP implementation experience in Ukraine and other Eastern and Asian countries. This analysis made it possible to elaborate a number of recommendations to further reconstruct the National Sustainable Development Policy in Ukraine. And there were:

  • Focus on hot spots & target setting
  • Environmental tax reform & resource pricing
  • Incentives & penalties
  • Eco-innovation
  • Education & knowledge transfer
  • Foreign direct investments (FDI) & development finance institutions (DFI).DSC 0239 1

In the first session Iryna Zaiachuk, Member of the Supervisory Board of PJSC JSCB “Lviv”, and the RECP Coordinator in the Western region held a speech “Partnerships and financial mechanism for Resource Efficient and Cleaner Production”

Tamara Burenko, Deputy Director of the Department of Strategic Development, Head of the Monitoring and Informatization Department of the State Agency for Resource Efficiency and Energy Conservation of Ukraine, reported on financial mechanisms to foster industrial development.

Iryna Zaiachuk: “Our goal is to help and focus our customers on choosing the right financing method and direct them towards the right financial institution”.

Tamara Burenko: "I’d like to draw your attention on the fact that reducing GHG emissions is possible only due to implementation of energy-efficient measures”

Heinz Leuenberger, UNIDO Chief Technical Advisor and the moderator of the first session, emphasized the relevance of RECP approach in the context of increased resource shortage on the planet. He also laid stress on the importance of the Expert Group Meeting in terms of achieving long-term goals for greening national industries and economy of Ukraine.

The second session was entitled “Best practices on Resource Efficient and Cleaner production: from the concept to implementation at companies in Ukraine”.

Nataliia Denysenko, the expert of the Programme to Support the Green Modernisation of the Ukrainian Economy (GIZ) held the moderator role during Session 2. She offered the floor to Ihor Shylovych, the RECP Centre Director in Ukraine, with a keynote presentation “Current situation and trends on the adaptation and implementation of the Resource Efficient and Cleaner Production concept in Ukraine”.    

2017-10-17 01.03.02 1I.Shylovych reported some statistics on technical solutions elaborated and then implemented during 2013-2016. So, the RECP Centre (Kyiv) managed to develop over 200 technical solutions for 78 enterprises in Ukraine. The overall estimated savings had to be as much as € 6,2 mln, however the reality appeared to be less optimistic and the savings amounted to € 904,000. Having got the experience in its portfolio the RECPC Director identified a number of key obstacles hampering full-scale RECP concept implementation in Ukrainian industry, and these were:

  • The amount of enterprises that have already implemented RECP options is not sufficient enough to put pressure on the service market;
  • Market uncertainties influencing RECP service pricing; poor public awareness as for final results derived from RECP implementation;
  • Ambiguity in understanding RECP practice in comparison with the well-known energy conservation principles;
  • Absence of state policy fostering faster RECP implementation.

Sergiy Kucheryavenko, the Project Manager of “Green Chamber: Initiative for Sustainable Development” project supported by the Programme to Support the Green Modernisation of the Ukrainian Economy (GIZ), The Director for Resource Efficiency and Environment Centre, Vice President of the Dnipropetrovsk CCI held a speech “Building up a regional network to support green modernisation at the Dnipropetrovsk Chamber of Commerce and Industry: promoting RECP tools at regional level.”

Sergiy Kucheryavenko: “We have been deeply involved in resource efficient, energy efficient and environment-related projects for over 10 years. The reason is simple. Efficiency in resource and energy use is the key to our competitiveness. Most metallurgical and mining enterprises in our region were built in the middle of the last century. And some of them even earlier. All of them became our priority target.” DSC 0125

The EGM participants shared their experience in implementing resource efficient projects in the session block entitled “From the Concept to Implementation: The Perspective from the Industry.” These were: Grygoriy Shmatkov (Head of the Committee of Green Service Providers at Dnipropetrovsk CCI); Oleksii Bondarenko (Chief Heat Engineer, PrJSC “Ukrgrafit”); Andrii Vahin (leading environmental engineer, PrJSC “Ukrgrafit”); Alexander Baskov (Senior Sustainability Consultant, Baker Tilly); Anton Kovalyshyn (Communication manager, DTEK ESCO); Serhii Syvolobov (Deputy Director, “DISLA” Consortium); Volodymyr Holovin (Deputy Director, PrJSC “Vishnevsky casting blacksmith factory”). Kostiantyn Gura, Advisor to the Head of State Agency on Energy Efficiency and Energy Saving of Ukraine, summarized the second EGM session.

The third interactive session/group break-out sessions: “Requirements and opportunities for the implementation of Resource Efficient and Cleaner Production in Ukraine to facilitate a regulatory framework in order to support green industry development” split the participants into three work groups as declared in the Agenda. Upon the brainstorming results they had to work out and derive some key institutional, technical and financial requirements for further RECP policy implementation in Ukraine.

Two moderators – Heinz Leuenberger (UNIDO Chief Technical Advisor) and Maryna Lytvynchuk (RECPC legal adviser) headed the first interactive group session “Institutional requirements.”

Mirko Lieber (the expert of Economic University of Vienna) and Taras Sakalosh (RECPC Executive Director) moderated Group 2 “technical requirements”.

Emina Alic (Deputy Project Coordinator) and Alexander Baskov (Baker Tilly) moderated the third group session “Partnership and financial requirements”.

2017-10-17 01.03.09 1The group sessions ended up with generated solutions framed in presentations.

As for institutional requirements the following were identified:

  • Political support for the passage and adoption of bills on cleaner production;
  • Drafting some laws of Ukraine in tangible areas such as energy audit, energy management, energy efficiency;
  • Broadening the scope of the Law of Ukraine "Energy Efficiency Fund" in order to make it work for the industrial enterprises; or as applying the cleaner production mechanisms outlined in the Law" Energy Efficiency Fund" an option.

The following are the technical requirements:

  • Development of a system of comparative indexes according to industrial sectors of Ukraine;
  • Development of a system of sectoral education platforms and knowledge data base for open use;
  • State programs to foster use of new technology;
  • State programs to support technical consulting.

The financial requirements were identified as follows:2017-10-17 01.03.06 1

  • Free competition;
  • Access to information. Setting up the information distributing system. Starting up the environmental and resource efficiency education in school yet;
  • Financial mechanisms and their fair use;
  • RECP as a tool to enterprise capitalization;
  • State support fostering RECP implementation at SME level;
  • Partnership between technical and financial institutions.

In his closing speech Heinz Leuenberger expressed his gratitude to EGM participants for the fruitful work and expressed hope and belief that the Expert Group would go on to support RECP and similar approaches to greening national industry, thus finally there will be formed a wide range of like-minded people supporting RECP. H. Leuenberger also emphasized on the EGM report content "Resource Efficient and Cleaner Production Policy: Fostering Green Industries in Ukraine". The Report was prepared by UNIDO at the Vienna University of Economics and Business (Austria). Upon EGM results and elaborated recommendations it should get supplemented, translated into Ukrainian and widespread among general public.

Heinz Leuenberger: "Today we had a very successful EGM with a topic of RECP. I think RECP is a key aspect of industrial development or sustainable industrial development. Labour productivity is as important as the resource productivity. Today we’ve heard different presentations what Ukrainian government is planning to do. We’ve also heard a presentation from the University of Economy in Vienna presenting the facts what is the current situation and how some of the other countries on the planet have solved the problem so far. And we’ve had the discussions in three groups, where people were expressing their views and opinions how the situation in Ukraine should be improved or should be adjusted. What do we do next? We have produced the background paper for this event, so we have to check if there is any mistake or any contradiction in this document. And if this is not the case, we will have it translated in Ukrainian. And we of course hope that this will help to revise and to amend the existing laws of Ukraine. So, in the future they (the laws) will be more supportive and helpful to implement RECP".

Ihor Shylovych: “We have created a good team which is capable to work with enterprises independently. The dynamics is positive if talking about incoming orders. This proves general progress in national enterprises development. And what makes the belief even stronger – the enterprises have moved forward, they do not stand still. It's really hard to say what is their incentive, but the progress is noticeable. I hope the RECP Centre and its team as well as the UNIDO project have got good chances to be granted with promising and positive future.”

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