Policy Reforms to Support the Green Recovery of Ukraine (Recommendations for the Heat and Power Sector)

This policy paper is based on LCU's Policy Proposal "Policy Reforms in Support of the Green Transition of Ukraine" and provides recommendations for reforms in the Ukrainian heating sector with a focus on district heating.

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While there are currently important economic reasons for a “green” reconstruction of Ukraine’s heating sector, significant regulatory obstacles and disincentives need to be overcome to mobilize the necessary investments in low-carbon assets.

Key policy reforms should include a gradual phase-out of gas subsidies, improved payment discipline, tariff reform towards incentive-based regulation, harmonization of district heating rules, adequate carbon pricing, increased social benefits, and improved governance of state-owned enterprises.

Source: https://www.lowcarbonukraine.com/en/policy-reforms-supporting-ukraines-green-reconstruction-recommendations-for-the-heat-sector-2/