USAID ESP helps to develop a favorable legal and regulatory framework for Ukraine to build its biomethane sector

May 2, 2024

On April 30, 2024, the USAID Energy Security Project (ESP) welcomed Ukrainian policymakers and sector experts at the Round Table on Biomethane, aimed at developing a favorable legal and regulatory framework for the biomethane sector in Ukraine and the country’s sustainable energy future.  

Opening the round table, the USAID ESP Chief of Party Michael Trainor stated that the Project supports Ukraine’s efforts to align its biomethane legislation with the EU standards. USAID ESP provides  support for Ukrainian stakeholders to ensure that the proper legislative and regulatory models are in place.  

Deputy Minister of Energy of Ukraine Svitlana Grynchuk underlined that since adopting the biomethane law in November 2021, Ukraine is actively progressing in this area. The Law of Ukraine on development of biomethane in Ukraine introduced specific legal terms necessary for a functioning biomethane market. All the parties involved – Verkhovna Rada of Ukraine, the Ministry of Energy of Ukraine, the Ministry of Finance of Ukraine, the State Agency on Energy Efficiency and Energy Saving of Ukraine, the National Energy and Utilities Regulatory Commission of Ukraine, and the State Customs Office of Ukraine – have united their efforts to enable the export of Ukrainian biomethane to the EU. 

During the round table, the participants discussed the current biomethane regulation in Ukraine, and the required amendments and drafts of amended legislation. 

Concerning amendments to current Ukrainian biomethane legislation, USAID ESP experts focused on the procedure for operating the Biomethane Register, recommendations to improve compliance with EU legislation, amendments required to remove biomethane export barriers, and steps required to solve the issue with connection to the union database.  

The experts also discussed amendments for the primary and secondary legislation, including the Customs Code of Ukraine and several laws of Ukraine. 

The development of biomethane is vital for Ukraine, as it will enable the successful integration of Ukraine’s biomethane market into the EU, including:  

  • Diversifying energy sources and strengthening Ukraine’s energy security  
  • Additional regional/rural investment and employment opportunities 
  • Contributing to energy decentralization  
  • Providing a new revenue stream for Ukraine due to the EU’s high demand for green molecules  
  • Decarbonization of the country’s energy sector in line with EU policies. 

USAID ESP’s work on the legislation on biomethane will create favorable conditions for developing a biomethane market in Ukraine, enabling Ukrainian biomethane to access the gas infrastructure for export to European Union countries. Considering that Ukraine also needs a well-structured and realistic incentive program to develop the industry further, the participants also discussed the economic side of biomethane market development.