CO2 tax cancellation for installations that use biofuel as the only one type of fuel: the draft law has been approved in the first reading
The Verkhovna Rada accepted in the first reading and as a basis draft law No. 9596 on amendments to the Tax Code regarding the establishment of a zero rate of environmental tax for carbon dioxide emissions by installations using biofuel as the only one type of fuel.
238 members of parliament VOTED IN FAVOR.
Our team has been advocating for this decision for many years. We thank the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, the Verkhovna Rada Committee on Energy, Housing and Communal Services, the members of the Parliament, the Ministry of Energy of Ukraine, and the State Agency on Energy Efficiency and Energy Saving of Ukraine.
Important
Currently, paragraph 243.4 of Article 243 of the Tax Code of Ukraine sets the tax rate for carbon dioxide emissions from stationary sources at 30 UAH per ton. However, biofuels are CO2-neutral. Therefore, the existence of such a tax is illogical and groundless.
The draft law provides for the adoption of globally accepted practices for the development and use of biofuels for energy production in Ukraine. Thus, according to the Clean Development Mechanism methodologies of the UN Framework Convention on Climate Change, CO2 from biomass combustion is not accounted for.
In global practice, biofuel is considered a CO2-neutral, because when it is burned, as much carbon dioxide is produced as was absorbed by plants during growth.
We also remind that the draft law on the creation of a register of such installations has also been approved in the first reading.
The UABIO team is waiting for consideration and approval this important law.
Photo: Press Service of the Verkhovna Rada of Ukraine.
