Institutional Solutions for Just Transition Fund
The project "Supporting Structural Change in Ukrainian Coal Regions" ("Just Transition Ukraine") was implemented by GIZ on behalf of the German Federal Ministry for Economic Affairs and Climate Action (BMWK). On the Ukrainian side, the project cooperated with the Ministry of Energy of Ukraine (MinEnergo) and the Ministry of Communities, Territories and Infrastructure Development of Ukraine (MinInfrastructure), as well as two pilot municipalities, the city of Chervonohrad and the city of Myrnohrad. The objective of the "Just Transition Ukraine" project was to support Ukraine in structural changes related to the coal phase-out at the national, regional and local levels, involving civil society, using tailor-made instruments and based on the concepts of "Just Transition" and "Green Recovery", which should make these changes socially and economically viable, as well as sustainable in terms of energy and the environment.
The "Just Transition Ukraine" project was structured in five complementary and mutually reinforcing components/outputs, namely
- Output 1: Facilitation of policy dialogue on structural transformation in Ukraine.
- Output 2: Creation of a strategic and legal framework for structural change in Ukraines coal regions at the national level.
- Output 3: Preparation and implementation of pilot projects and strengthening of institutions involved in the implementation of structural changes at the local and regional level.
- Output 4: Support for the establishment and operation of a financing facility to support structural change.
- Output 5: Communication and awareness-raising on the process of structural change in the coal industry.
Output 5 aimed to support the Ukrainian government in establishing a financing mechanism to support structural change. Following initial discussions among key stakeholders prior to the outbreak of full-scale war, the mechanism was designed to pool funding from both international donors and the Ukrainian national budget and provide flexible financing for forward-looking projects that address the social, economic, energy and environmental challenges associated with structural change in communities and regions across the country where coal mines would be closed, based on transparent eligibility criteria and award procedures. The German government has pledged seed funding for such a mechanism. In the current circumstances, after the outbreak of full-scale war, key design elements of the funding mechanism had to be reconsidered. Both the Ukrainian and German Governments have reaffirmed, in general terms, their commitment to the establishment of such a funding mechanism even after February 2022.
In this context, the purpose of this short-term assignment was to support the project staff with analysis and expert advice on the feasibility and practicability of different possible institutional and legal solutions for the establishment of such a funding facility.
PROJECT IS PART OF
