Context
Ukraine is currently in a very difficult economic and financial position. One of the foremost tasks of the government elected on 25 May 2014 and the parliament elected on 26 November 2014 will be to achieve economic stability for the country. In future, Ukraine will need to begin transforming its economic system into a green, diversified economy in order to become competitive.
Green economy is a new topic in Ukraine. As a result of ratification of the Ukraine–European Union Association Agreement on 16 September 2014 by the Ukrainian and the European Parliament, Ukraine undertook to adopt to a large extent EU technical standards and regulations over a transition period of 10 years. These pertain, for example, to public procurement, hygiene, designations of origin and the protection of intellectual property. By joining the Energy Community in 2011, Ukraine has undertaken to implement EU legislation on energy. The necessary changes to bring the country's laws into line with EU legislation have not yet led to sound, transparent structures in the energy market. The Ukrainian Government has implemented approaches to promote renewable energies, primarily wind energy. The State Energy Efficiency Programme 2015 aims to reduce production costs by ten per cent.
The Ukrainian Ministry of Economic Development and Trade has recognised the need for economic structural change. It has commissioned the Economic Research Institute, for which it is responsible, to devise a concept for a green economy strategy. The intention is to promote the necessary economic structural changes to move towards more energy-efficient and environmentally sound production.
Objective
Government institutions, small and medium-sized enterprises (SMEs) and business associations draw on in-depth knowledge and new instruments for green economic development.
Approach
GIZ is supporting the Ukrainian Government in improving the overall business environment. Using the new and needs-oriented business services available to them, companies can adapt their process, product and production standards to the requirements of international markets.
GIZ operates at three different levels in this context. It advises the ministries, facilitates dialogue processes and improves the direct business environment by implementing key pilot and demonstration measures at local and corporate level. In addition, it supports reform efforts by the partners to foster ecological modernization of the economy, enhance energy efficiency and reduce dependency on energy imports. Moreover, it encourages greater dialogue between the public and private sector.
• At national level, GIZ is providing advisory services on how to draft, agree on and implement a national green economy strategy. This will improve the framework for competition, innovation, resource efficiency and exports. Training activities on ecological modernisation, such as the introduction of an ecological tax reform, green procurement and green innovation strategies, enhance the knowledge and scope for action of professionals and managers in different departments on key elements of a strategy for ecological modernisation of the economy.
• At regional level, support is provided to set up green economy platforms. The aim is to promote a structured dialogue between government institutions, chambers and associations, selected large companies, SMEs and civil society representatives on energy-saving and resource-saving business management. The platforms encourage joint learning and cross-district networks and partnerships. In addition, advisory institutions such as chambers and associations are assisted in improving their services in the field of energy and resource efficiency, hence making them more attractive for companies. The programme organises the exchange of experience with the German private sector on resource-efficient business management and corporate ecological and social responsibility.
• At corporate level, business service providers are supported in their work through training and technical consultancy. This is designed to extend the range and improve the quality of their advice and services in the field of energy-saving and resource-saving technologies.
Experience at corporate level is analyzed for strategy development, presented to the Ministry and thus fed into policy dialogue at national level.
The Ukrainian alumni network of the manager training programme that has been promoted by the German Federal Ministry for Economic Affairs and Energy for more than ten years plays a key role as an intermediary and multiplier in the three areas of action. The aim of the training is to build management skills and establish business contacts.