Next month, world leaders will gather in Glasgow, Scotland for the latest Climate Summit.
One of the biggest topics on the agenda will be renewable energy. The summit will focus on commitments to reduce CO2 emissions and once again to try and find ways to balance economic goals with the preservation of the planet. The two things – economy and ecology – can no longer be separated or seen as opposite sides of a coin. The environment IS the economy in many ways. Green business is also big business and nowhere more than in the energy sector.
The transition has already begun away from a carbon based economy, powered by coal, oil and natural gas, toward a future based around renewable sources of generating energy and powering transportation. In the G7 economies, new investments in wind, solar, hydro and alternative fuels far outweigh those in “traditional” exploration and refining. Almost globally these investments and initiatives form an integral part of government policy. Through legislation, subsidy and support for academic and commercial research, government policy seeks to better align economic and environmental interests.
If ever there was a time for Ukraine to push towards embracing this global trend and for our government to take the necessary steps to support this, now is that time. The battle over Nordstream 2 has highlighted yet again the vulnerable situation of being a country required to cooperate with Russia for revenues from fossil fuel transmission, and even more so reminds us that Ukraine sends tens of billions of Hryvnia a year to Moscow to fund oil and gas purchases. For Ukraine it is more even than an environmental and economic issue – renewables are also a National Security issue. Presently Ukraine lags far behind our allies in the EU and US on these issues. This is to the detriment of our farmers who don’t get to reap the benefits of biofuels, of our children who breath some of Europe’s most polluted air, and of all our citizens who pay higher taxes as a result of the billions sent to Russia and elsewhere. Surely now is the time, for the sakes of all these people, for our government to lead on this issue.
So what hinders the development of renewable energy in Ukraine? Of course, there are many such factors. But, in my opinion, the main problem is still the lack of technical capacity and funding.
I referred earlier to the missed opportunities in the agrarian space that costs our farmers dearly, so let me expand on that example. With access to capital and expertise from countries with a mature biofuel industry, we can greatly assist the Ukrainian agrarian sector. We don’t have to look far to find an example of an economy where farmers are actively engaged in the fuel market – in the US, EU, and other large nations such as Brazil the demand for agricultural products is strengthened by their use of biofuels. In the US up to 12% of transportation fuel is grown by farmers, not drilled for by oil companies. This has led to innovations in farming methods that benefit farmers, in addition to huge revenues for arable farmers across the Midwest region. Academic research and corporate innovation has already spurred a second-generation of biofuels – those not made not from rapeseed and food crops specially grown for this purpose, but from agricultural waste, crops such as miscanthus that can grow on lands unsuited to food crops, and even from trees. Agriculture is one of Ukraine’s greatest exports and natural advantages in the world, to not use this advantage to reduce our dependence on foreign oil while helping our enterprising farmers is negligence on behalf of our policy makers who could spur this industry here in Ukraine.
Many of my colleagues in politics are quick to point out problems, but what this country needs are practical and workable solutions. I have many ideas spanning all aspects of renewables but let’s continue to focus on biofuels for the sake of this piece – I propose that we should establish an organization in Ukraine to bring shared knowledge in this crucial sphere to this country. The US has professional bodies with a deep knowledge and understanding gained from years of experience. Setting up a similar Biofuels industry group in Ukraine and cooperating with those who already know how to establish and manage a thriving biofuels sector is the first step. With this in place we can build the legislative framework needed to build a major new economic sector in Ukraine, one where our natural advantages of rich soils and proximity to European markets can mean Ukraine isn’t just a player but a leader on the world stage. If we can get this done then it will also show the world that Ukraine can stand at the forefront of the 21st century green economy and be a renewable energy powerhouse – good for our security, good for our economy, good for our standing in the world and good for our people
