UABIO appealed to government on the release the biomass burning plants from the payment CO2 tax and support electricity production from biomethane. Letter 485
UABIO continues to lobby the biomass burning plants release from the payment of CO2 tax in Ukraine.
The letter UABIO dated 06.05.2020 was sent to the Chairman of the Verkhovna Rada Committee on Energy and Housing and Communal Services GERUS A.M., as well as: Deputy Chairman of the Verkhovna Rada Committee on Energy and Housing and Communal Services SEMINSKY O.V., Secretary of the Verkhovna Rada Committee of issues of energy and housing and communal services SHAPOVALOVA Y.A., People’s Deputy of Ukraine, member of the Verkhovna Rada Committee on Energy and Housing and Communal Services KOT A.B. and to the People’s Deputy of Ukraine, member of the Verkhovna Rada Committee on Energy and Housing and Communal Services GRUB В.О.
Annex 1: Response from the Ministry of Environment No 457 from 03.06.2019 (in Ukrainian)
Annex 2: Draft Law of Ukraine “On Amendments to the Tax Code of Ukraine Concerning Exemption Biofuel Combustion Plants from Tax on Carbon Dioxide Emissions”, Comparative Table and Explanatory Note to it. (in Ukrainian)
Annex 3: Comparative table to the draft Law of Ukraine “On Amendments to the Law of Ukraine” On Alternative Energy Sources “to stimulate the production of electricity from biomethane”. (in Ukrainian)
UABIO previous work
In June and in November 2019 UABIO sent a letter to Prime Minister of Ukraine Groysman V. B., Minister of Ecology and Natural Resources of Ukraine Semerak O. M., to the People’s Deputies and others with a request to release the biomass burning plants from the payment CO2 tax. Details are here.
Full UABIO Letter from 03.06.2019 on supplement clause 243.4. Article 243 of the Tax Code of Ukraine on the release the biomass burning plants from the payment CO2 tax (in Ukrainian)
Full UABio letter from 11.11.2019 to People’s Deputies with the Draft Law on the release the biomass burning plants from the payment of CO2 tax (in Ukrainian)
In August 2019 року we received a positive response from the Ministry of Environment (see Annex 1).
Situation in Ukraine
Business entities that burn biomass on stationary sources of pollution are taxpayers for carbon dioxide emissions (according to Article 240 Tax Code of Ukraine). From January 1, 2019, the tax rate for carbon dioxide emissions from stationary sources has been raised from 0.41 UAH per ton to 10 UAH per ton, ie increased by 24.4 times.
This state of affairs does not correspond to world practice, since biomass is considered as СО2-neutral fuel, because the amount of carbon dioxide formed during burning equals the amount carbon dioxide which absorbed by plants during growth.
Situation in Europe
All EU Member States do not apply carbon dioxide taxes on energy production from biomass:
1. According to the clean development mechanism methodology of the United Nations Framework Convention on Climate Change, carbon dioxide emissions from biomass are not taken into account.
2. According to Guiding Principles on National Greenhouse Fas Inventories from IPCC (Intergovernmental Panel on Climate Change Experts) CO2 emissions from biomass combustion are reported as zero in the energy sector.
3. In Sweden, the carbon dioxide tax is charged on the supply, import and production of fossil fuels for heating, biomass is exempt from this tax.
4. In the UK, the Carbon Price Floor tax is charged on fossil fuels for electricity generation and is not applicable to biomass.
5. In Denmark, the carbon dioxide tax is charged on production, processing, storing fossil fuels for heating, including energy taxes on petroleum products, coal, lignite, coke and certain energy products. Biomass is exempt from these taxes.
We ask to exempt businesses which are burning biomass from stationary sources of pollution from paying carbon dioxide taxes.
UABIO
Position of the UABIO is prepared, discussed and agreed upon by the members of the UABIO, which produce more than 50% of all energy from biomass and biogas in Ukraine.
