Parliament approved the law on the development of a liquid biofuels market

At the session of the Parliament, the draft law №3356-d from 05.11.2020 on the mandatory use of liquid biofuels (biocomponents) in the field of transport was approved in the first reading. 293 people's deputies voted for this decision.

The draft law is the result of productive cooperation between the State Agency for Energy Efficiency, the Ministry of Energy, people's deputies, associations of the oil refining and alcohol industries.

The main purpose of the draft Law is to create an effective legislative mechanism for the development of a competitive market for the production and use of bioethanol and biocomponents in transport in Ukraine.

"The development of the bioethanol market is an important step towards the replacement of oil products, which in 2020 took first place in the commodity structure of Ukraine's imports worth 3.8 billion $," - commented Acting Head of the State Agency for Energy Efficiency Konstantin Gura.

In addition, Ukraine annually imports up to 55 thousand tons of bioethanol in gasoline. At the same time, the total production capacity of Ukrspirt reaches about 110 thousand tons of bioethanol per year, which are currently idle.

The draft law provides:

  • establishment of a mandatory share of liquid biofuels (quotas) in the total annual sales of gasoline: from 01.05.2022, the mandatory share is not less than 5% by volume;
  • introduction of accounting and control of the content of biocomponents in gasoline;
  • establishment of liability for non-compliance with quotas by economic entities engaged in the production, import and sale of gasoline in the customs territory of Ukraine;
  • introduction of requirements for compliance with sustainability criteria for biofuels from 01.07.2022.

The technical characteristics of fuels with biocomponents must meet the requirements of technical regulations, harmonized European standards and other regulations.

Speaking in the Parliament, Andriy Gerus, Chairman of the Verkhovna Rada Committee on Energy and Housing and Communal Services, said that the bill had been considered by the Energy Community, it was in line with European practice and it would help to reduce harmful emissions into the environment.

In general, the adoption of the draft law will allow:

  • to attract investment in the production of liquid biofuels;
  • to stimulate the construction of new bioethanol production facilities;
  • to intensify agricultural holdings and distilleries for the production of liquid biofuels;
  • to create new jobs;
  • to increase the level of workload of distilleries and production potential of related areas;
  • to increase tax revenues to the budgets of different levels;
  • to reduce greenhouse gas emissions in the transport sector.

Source Government portal

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