EBRD and Ukraine agree to reduce methane emissions in gas sector
Accord sealed during UN sustainable energy forum
EBRD to help Ukraine reduce methane fugitive emissions in gas sector Memorandum signed with the government and national energy company Naftogaz Investment under consideration to reduce environmental impact of Naftogaz subsidiary, UkrGazVydobuvannya The EBRD, Ukraine’s national energy company Naftogaz and the country’s Ministry of Ecology and Natural Resources have agreed to work together to reduce methane emissions in Ukraine’s gas sector.
The three parties will develop a national initiative — «Methane Emissions Reduction Programme in the Gas Supply Chains» — that will include advanced measurement campaigns, an improved emissions inventory system and the development of an investment road map to significantly reduce methane fugitive emissions.
A Memorandum of Understanding covering this cooperation was signed by the EBRD Director for Energy Efficiency and Climate Change, Terry McCallion; Minister of Environment of Ukraine, Ostap Semerak; and the CEO of Naftogaz, Andriy Kobolev, on the first day of the Ninth International Forum on Energy for Sustainable Development today in Kiev.
The programme and the impact of methane emissions on the sustainability of natural gas supply chains were discussed at the forum’s high-level panel «Methane Management in Extractive Industries».
Addressing methane leaks in gas supply chains will make a crucial contribution to the rapid decarbonisation of the Ukrainian energy sector. Oil and gas sector methane emissions in the EBRD regions are estimated to be nearly 60 billion cubic metres per year, nearly 40 per cent of the regions’ total greenhouse gas emissions.
In parallel, the EBRD is considering a loan of up to ˆ52 million to the Ukrainian domestic gas production company JSC UkrGasVydobuvannya to help it invest in advanced waste heat recovery equipment in its gas processing operations and reduce CO2 emissions while ensuring reliable extraction of gas for the country.
The EBRD is a major investor and supporter of sustainable energy in Ukraine. The EBRD’s revolving loan facility to Naftogaz has allowed Ukraine to secure critical gas imports since 2014. The EBRD is a strong promoter of Ukraine’s energy security and also one of the biggest investors in the country’s renewable energy (total investment exceeding ˆ350 million to date in biogas, wind and solar power, hydroelectricity and biomass), as well as the main international financial institution which promotes nuclear safety in the country.
The EBRD actively participates in dialogue between regional and global development banks about boosting climate finance in emerging economies. For the last two years, the Bank has coordinated the publication of the annual joint report by multilateral development banks on climate finance.
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. The Bank is owned by 67 countries as well as the EU and the EIB. Since 2006, the EBRD has committed over ˆ26 billion under its flagship Green Economy Initiative which combines climate finance, technical assistance and policy dialogue. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated. Follow us on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube. #EBRDgreen
