Tenth Meeting of the EECCA Environmental Finance Network
22-23 February 2007, Paris
Performance Review of the State
Environmental Protection Fund of
Ukraine
Mykola Pilipchuk
Ministry of Environment, Ukraine
Dynamics of Actual Proceeds and Expenditure Channeled by the State
Environmental Protection Fund for Environmental Activities in 1998-2006
and Projection for 2007
600
516.8
509.1
500
415.6
Amount of funding, mln HRV
400
300
200
118.1
124.5
95.4
100
64.4
65.9
37.4
6.9
81
11.3
129
56.6
95.9
51.1
23.7
41.6
0
1998
2.7
1999 10.9
Proceeds
2000
2001
Expenditure
2002
2003
Year
2004
2005
2006*
2007*
(projection)
Shortfall in the Environmental Protection Funds' Proceeds from
Environmental Pollution Charges (Due to Delayed Indexation), 1997-2006
Funds' actual proceeds (mln HRV)
Funds' possible proceeds if indexed in a timely manner (mln HRV)
1000
2005
900
800
2003
700
2002
600
2001
500
400
2000
300
200
100
0
1997
1998
1999
2004
2006
ECONOMIC MECHANISM OF ENVIRONMENTAL ACTIVITIES
•
CHARGE STANDARDS INDEXATION MECHANISM WAS DEVELOPED,
WHICH WAS IMPLEMENTED BY DECREE OF THE CABINET OF MINISTERS
OF UKRAINE NO. 1423 OF 18.10.06.
•
AS A RESULT, PROCEEDS TO THE ENVIRONMENTAL PROTECTION FUNDS
ARE PROJECTED TO INCREASE BY HRV 57.9 MLN IN 2007 VERSUS 2006,
OF WHICH THOSE TO THE STATE FUND, BY HRV 37.6 MLN (7.5 PERCENT),
AND THEY ARE PROJECTED TO INCREASE CONSISTENT WITH THE
COUNTRY’S INFLATION RATE IN THE FUTURE.
•
DRAFT LAW “ON AMENDMENTS TO SOME LAWS OF UKRAINE” WAS
DEVELOPED (EXPANDING THE ENVIRONMENTAL POLLUTION CHARGE
BASE), WHICH WILL INCREASE THE NUMBER OF PAYERS AND THE
CHARGE BASE AND WILL RAISE PROCEEDS TO THE ENVIRONMENTAL
PROTECTION FUNDS.
•
FOR EXAMPLE, PROCEEDS FROM THE CHARGE FOR AIR POLLUTION
FROM MOBILE SOURCES ALONE WILL EXCEED HRV 100 MLN VERSUS
HRV 23.2 MLN IN 2005.
DRAFT TAX CODE IS BEING DEVELOPED.
ORDER OF THE MINISTRY OF ENVIRONMENTAL PROTECTION OF UKRAINE
NO. 395 OF 4 SEPTEMBER 2006
ON POLITICAL PRIORITIES, STRATEGIC AREAS, AND OBJECTIVES OF THE
MINISTRY
WITH A VIEW TO ORGANIZING PROPER OPERATION OF THE MINISTRY OF
ENVIRONMENTAL PROTECTION IN COMPLIANCE WITH THE PROVISIONS
OF THE NATIONAL UNITY UNIVERSAL, COALITION AGREEMENT, AND
REGULATION ON THE MINISTRY APPROVED BY DECREE OF THE
PRESIDENT NO. 1842/2005 OF 27 DECEMBER 2005, I HEREBY ORDER:
1. SET POLITICAL PRIORITIES, STRATEGIC AREAS, AND OBJECTIVES OF
IMPLEMENTATION OF THE STATE POLICY REGARDING ENVIRONMENTAL
PROTECTION, MANAGEMENT OF NATURAL RESOURCES,
ENVIRONMENTAL SAFETY, AND TOPOGRAPHIC, GEODETIC, AND
CARTOGRAPHIC ACTIVITIES.
•
ІІ. STRATEGIC AREAS AND OBJECTIVES:
•
SET UP WITHIN THE FRAMEWORK OF THE MINISTRY OF NATURE A
STAND-ALONE PUBLIC INSTITUTION – STATE ENVIRONMENTAL FUND AS
A SINGLE MANAGER OF THE STATE FUND RESOURCES CHARGED WITH
THE TASK OF MANAGING THE RESOURCES OF THE STATE
ENVIRONMENTAL PROTECTION FUND.