Ukraine to Approve Draft Law on Ecological Modernization in Industrial Sector

One of the most discussed draft laws for ecological modernization (No. 4167 ‘On prevention, reduction, and control over industrial pollution’) is currently on the agenda of the Verkhovna Rada of Ukraine.

The Draft Law No. 4167 was developed to fulfill Ukraine’s obligations under the EU-Ukraine Association Agreement, European Atomic Energy Community and the Member States.

The key novelties of the Draft Law No. 4167 are:

• Establishment of emission control for large enterprises in energy, metallurgical, chemical sectors. Draft Law suggests implementation of an ‘integrated permit’, that stipulates maximum allowable values of specific parameters of emissions to air and discharges to water, waste management requirements etc.
• Full authority of the State Ecological Inspection in terms of emission control, including issuing, suspension, and termination of the integrated permit.
• Right of third countries to participate in the process of integrated permits issuance. The Draft Law suggests third countries that might be affected by pollutant emissions of Ukrainian companies may submit their comments and suggestions to the State Ecological Inspection on feasibility of integrated permits issuance.

Alternative Draft Law No. 4167-1 has been recently put to the agenda of the Verkhovna Rada. The alternative Draft Law is more liberal and suggests limited powers of the regulatory authorities in respect of emission control, if compared to the Draft Law No. 4167.

Both Draft Laws are pending review of the Verkhovna Rada of Ukraine.

Dmytro Vidsota, Managing Partner of Robinson Patman Law Firm:
‘At the moment, both draft laws (No. 4167 and No. 4167-1) are being approved by the committees and are pending review of the Verkhovna Rada of Ukraine. It is still difficult to predict which draft law will be taken as a basis, as well as what changes will be made in the process of approvals and consultations.

The need for ecological modernization of the industrial sector of Ukraine has long been ripe and, of course, aims to increase its competitiveness, in international markets in particular. Ukrainian business, subject to proper legal support within the framework of the European ecological regulation implementation, will receive not only environmental, but also economic benefits.’

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