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