LibMod-Policy Paper: INVESTMENT PLANS OF THE EU — oppor­tu­nities for Ukraine in the area of the European Green Deal implementation

The analytical paper “Investment plans of the EU: oppor­tu­nities for Ukraine in the area of the European Green Deal imple­men­tation” identifies the most important spheres of involvement for the Ukrainian government and businesses under the EGD policy. It also examines available investment and financing mecha­nisms for the Ukrainian state and private sector under existing Green Deal framework.

The research was commis­sioned by LibMod and done by Dixi Group in frames of the project “Ukraine in Europe”, supported by the Federal Foreign Office.

You can download the full PDF document here

The European Union has ambitious plans on climate change and environ­mental invest­ments in the upcoming decade, aiming to become carbon neutral by 2050. Under the European Green Deal framework, the EU will mobilize €1 trillion of invest­ments for sustainable projects and policies that will come from the EU and national budgets, private capital and loan guarantees. Half of this financing is expected to be provided from the next budget of the Union, the 2021–2027 Multi­annual Financial Framework.

Most of the EU financing under the European Green Deal will be available for member states – govern­ments, private and non-profit sectors, and individuals. Yet, there still are ways for the Ukrainian businesses to get involved. One of such ways is to identify the areas where additional exports of goods or services will be needed, facil­itate Ukraine-EU trade, and attract additional foreign invest­ments in the national economy. As the EGD prior­i­tizes certain areas, European businesses and govern­ments will drive demand in biodi­versity protection, sustainable agriculture, clean energy, sustainable industry, building and renovating, sustainable mobility, elimi­nating pollution, circular economy and digital technologies. Financial instru­ments such InvestEU, Just Transition Mechanism, Horizon Europe, Next Gener­ation EU, Modern­ization Fund, Cohesion Fund, Connecting Europe Facility, Innovation Fund will be used to achieve the set goals.

Key questions discussed in this research are:

• Identi­fi­cation of areas that will be prior­i­tized for devel­opment in the EGD strategic policies as those which will provide investment and export opportunities.
• Research of funding mecha­nisms for priority areas of the EGD that will be prolonged or created for the next EU budget period (2021–2027).
• Analysis of the potential of Ukrainian businesses to meet the growing demand from the EU countries in certain areas, the devel­opment of which will be accel­erated by the EGD.
• Research of the EU plans in terms of inter­na­tional aid in its budget for the next period and under the EGD framework; selection of those available for Ukraine;
• Devel­opment of recom­men­da­tions for different stake­holders in Ukraine, with a focus on the government and the private sector.
• Consid­er­ation of COVID-19 recovery aspect, with regards to both Ukrainian policies direction and its alignment with the EU course, and to financing available for economic and social indicators improvement in terms of third countries recovery.

You can download the full PDF document here