Decarbonisation of the economy: Government approves Long-Term Low-Carbon Development Strategy of Ukraine until 2050

On 10 June, the Cabinet of Ministers of Ukraine approved the Long-Term Low-Carbon Development Strategy of Ukraine until 2050 at a meeting dedicated to environmental issues. The document defines the vision and key directions for the decarbonisation of the economy and creates a single framework for coordinating the efforts of the state, business and international partners on the path to achieving climate neutrality.

The Strategy provides for the implementation of a set of measures by 2035 as an intermediate stage on the way to climate neutrality by 2050. It takes into account the needs of post-war recovery, economic modernisation and Ukraine’s European integration.

“This is an important signal for business and international partners. Ukraine is consistently moving towards climate neutrality, creating conditions for investment, technological modernisation and sustainable economic development,” noted Oleksandr Krasnolutskyi, Deputy Minister of Economy, Environment and Agriculture.

The implementation of the Strategy is expected to attract investment in economic modernisation, the development of energy-efficient technologies and the introduction of innovative solutions. Among the key results planned are:

• additional GDP growth of up to 2.1% by 2035;
• more than halving the energy intensity of the economy;
• development of new economic sectors, including biomethane and hydrogen production and CO₂ capture and storage technologies;
• formation of domestic investment resources for production modernisation and improved energy efficiency;
• development of distributed power generation with a capacity of over 4 GW;
• support for the transformation of regions;
• creation of new green jobs.

The implementation of the document’s provisions will help adapt the Ukrainian economy to European climate policy, in particular the Carbon Border Adjustment Mechanism (CBAM), and expand Ukraine’s access to European climate funds and financial instruments.

At the same time, the document will contribute to increasing the energy resilience of communities, reducing greenhouse gas emissions and building a modern, competitive economy integrated into the European Union’s climate policy.

The Strategy was developed in accordance with the Law of Ukraine “On the Basic Principles of State Climate Policy”, Ukraine’s international commitments under the Paris Agreement, and in preparation for EU membership.

The preparation of the document involved the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, with the support of the United Nations Development Programme (UNDP) in Ukraine, including more than 20 national and international experts.