Ukraine faces a huge opportunity. It can become a global leader in sustainable development

Ukraine is determined to forge a path towards energy sustainability and resilience in the face of ongoing conflicts with Russia. Energy transformation is not only a strategic goal but also a prerequisite for Ukraine's European Union membership aspirations. Tomasz Ochrymowicz, a partner at Deloitte CE, emphasizes this point in an interview, highlighting the upcoming New Green Ukraine panel at the PRECOP 28 conference in Katowice on October 5-6.

Despite the uncertainty surrounding the conflict's resolution, Ukraine remains committed to its European ambitions. The European Union's accession process necessitates intensified efforts to decarbonize the economy. While ensuring the safety of its citizens remains paramount, the conflict has underscored the importance of sustainable development and the security of critical infrastructure, particularly in the energy sector.

Ukraine's government recognizes these challenges and is developing both short- and long-term plans for the nation's transformation. The reconstruction plan includes investments in renewable energy sources, with Prime Minister Denys Shmyhal advocating for a decentralized energy system centered on wind, solar, and hydrogen.

A decentralized energy system will increase Ukraine's security

The post-war challenge will be to strike a balance between the urgent need to rebuild Ukraine's industry and cities and the long-term goals of decarbonization and sustainable development. International practices, such as the "Do No Significant Harm" (DNSH) principle adopted by the European Union, can guide investments in national reconstruction plans.

The environmental consequences of war, including soil, water, and air contamination and ecosystem destruction, are notoriously difficult to address. Ukraine, the most mined country globally and a top grain producer, faces the daunting task of reconstruction. Some experts suggest that rebuilding from scratch may enable Ukraine to decarbonize more rapidly than countries with aging conventional infrastructure.

Ukraine is currently the most mined country in the world, but also a leader in grain production

The scale of destruction compels Ukraine to embrace a green direction to ensure future security, reduce dependence on Russian fossil fuel imports, and safeguard infrastructure against climate change impacts. Ukraine's commitment to the European Green Deal remains steadfast, reflecting its integration aspirations with the European community.

Ukraine has the potential to become a leader in sustainable development, with prospects for a “green” steel industry, hydrogen, and green energy hubs for Europe. Rebuilding infrastructure from the ground up allows for low-emission, energy-efficient, circular economy-compatible investments that are resilient to extreme weather events while preserving biodiversity.

International financial institutions, including the IMF, World Bank, European Bank for Reconstruction and Development, and the European Union, have pledged support for Ukraine's reconstruction. These institutions prioritize pro-environmental technology solutions, climate resilience, and environmentally sustainable investments.

Engaging private capital presents challenges, notably risk mitigation and investment security. However, these challenges can be overcome with support from countries, international organizations, and the creation of an attractive environment for foreign direct investments, technology transfer, and job creation.

In conclusion, Ukraine's determination to pursue a green energy transformation amid ongoing conflict highlights its commitment to a sustainable and secure future. With international support and a vision for a resilient, low-carbon economy, Ukraine has the potential to emerge as a leader in sustainable development and energy transformation.