The EU Renewable Energy Directive (RED), called to amend and subsequently repeal existing Biofuel and Renewable Electricity Directives, became effective from June 25, 2009. It specified new renewable energy targets and established binding sustainability criteria for certain types of biofuels. The biofuels and biomass that fail to meet the sustainability requirements are not counted towards new ambitious renewable energy targets and are excluded from the EU and national support programs.
The cost of paying corporate taxes is a major determinant of the business climate in any country. In the case of Ukraine corporate tax rates are not excessive, but the administrative burden of paying taxes is extremely high, due to a very complicated and inefficient tax accounting and reporting system.
The Ukrainian government encourages investments into the establishment of bioenergy facilities offering privileges for producers. Among these privileges is a higher tariff for electricity generated from alternative sources of energy – the so called “green tariff”.
According to the preliminary estimate of the Derzhkomstat, the real GDP contraction in the third quarter of 2009 decelerated to 15.9% yoy.
HIGHLIGHT OF THE MONTH: Twelve months of banking crisis