Assessment of the development of the biomethane market in Ukraine during and after martial law: environmental and customs approaches
DOI:
https://doi.org/10.26642/ppa-2024-2(10)-9-17Keywords:
sustainable development, European integration, impact investments, biofuel, biofuel market, customs clearanceAbstract
The article examines the development of the biomethane market in Ukraine during and after martial law from environmental and customs perspectives. The relevance of the topic is driven by the need to increase state budget revenues to support the activities of the Armed Forces of Ukraine. Estimates suggest that the country’s losses from military actions amount to approximately $499 billion. Leading experts consider the production and export of biomethane – a renewable gas with a high methane content (over 96 %) that significantly reduces greenhouse gas emissions – as one of the viable investment directions for developing the national economy. The use of biomethane aligns with the goals of the Paris Agreement and is in demand in EU countries aiming to reduce greenhouse gas emissions by at least 55 % by 2030 compared to 1990 levels. In Ukraine, potential biomethane production could reach 20 billion m³ per year, attracting up to 40 billion euros in investments in this sector. From an environmental standpoint, replacing natural gas with biomethane will contribute to achieving sustainable development goals. The article also provides a SWOT analysis of the biomethane market in Ukraine, highlighting its strengths, such as a significant raw material base and successful project implementations, as well as weaknesses, including an imperfect legislative framework.
The article discusses the possibilities of implementing effective mechanisms to stimulate biomethane production, attracting international investments, developing the biomethane market as a motor fuel, and exporting to EU countries. Special attention is given to legislative initiatives aimed at improving the regulatory framework for the development of the biomethane market, including the adoption of a law on the customs clearance of biomethane. The article concludes by emphasizing the necessity of developing biomethane production to achieve Ukraine’s energy independence, reduce waste volumes, create additional jobs, and attract investments, all of which will promote sustainable economic development in the country.
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