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.
Position of the Bioenergy Association of Ukraine:
"We ask to exempt businesses which are burning biomass from stationary sources of pollution from paying carbon dioxide taxes.
In particular, we propose to supplement clause 243.4. Article 243 of the Tax Code of Ukraine with the following sentence: "The tax rate for carbon dioxide emissions resulting from the combustion of biomass, including as a result of its simultaneous incineration with other fuels, is 0.00 UAH per 1 ton".
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.
The letter was sent to Prime Minister of Ukraine Groysman V. B., Minister of Ecology and Natural Resources of Ukraine Semeraka O. M., Minister of Finance of Ukraine Markorovoy O. S., acting Chairman of the State Fiscal Service of Ukraine Vlasova O. S., acting Chairman of the Verkhovna Rada of Ukraine Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety Dombrovsky O.G. and Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine Savchuk S.D.
UABio position is prepared, discussed and agreed by the UABio members, which generate more than 50% of all thermal energy from the RES in district heating systems of Ukraine.Full UABio letter 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)