Ukraine will create fund for transformation of coal regions – Energy Ministry

Ukraine will create a fund for the transformation of coal regions, which will help accelerate their energy transition projects and the gradual elimination of the coal industry, the Energy Ministry said, citing Deputy Minister Yaroslav Demchenkov.

"We must form a fund for the transformation of coal regions in Ukraine and provide financial contributions to it for the implementation of projects, in particular for the physical closure of coal mines," he said during consultations on fair transformation and the opportunities of Lviv region.

At the same time, it is specified that the project is being implemented in partnership with GIZ Ukraine (Deutsche Gesellschaft für Internationale Zusammenarbeit) as part of the project "Support for Structural Changes in the Coal Regions of Ukraine," funded by the German government.

"Ukraine can become a place to create sustainable energy clusters. These clusters can appear in closed coal mines using the infrastructure of these enterprises. This is an important incentive for the development of regions, the creation of new jobs, and support for the country's economy," Demchenkov said.

According to him, currently most of the settlements of Donetsk and Luhansk regions, where coal mining is carried out, are located in the combat zone, occupied or blocked by the enemy.

"Mines in such conditions cannot fully function, which creates new environmental risks and socio-economic problems. The cessation of the work of some coal mining enterprises, according to the World Bank, means a total loss of more than $300 million," the deputy minister added.

According to the Ministry of Energy, in 2023, with the support of the German government, the development of a plan for the liquidation of the Velykomostovska mine in Lviv region and support for its implementation will be carried out.

The agency noted that this project will be one of the pilot projects and can serve as an example of an integrated approach to the development of the territory. Within its framework, an industrial park is being created in Chervonohrad, and measures are being taken to improve energy efficiency and economic diversification.

Source: www.en.interfax.com.ua