Problems of Ukraine’s coal sector and greenhouse gas emissions from coal mining and consumption

The objective of this report is to analyze negative social, economic and environmental impacts of coal mining and combustion. Special attention is given to the problem of greenhouse gas emissions and emissions reduction policies and technologies.

Section 1 contains a general overview of Ukrainian coal industry including information about coal mining and combustion, export and import, ownership structure of coal-mining companies, and information about technical condition and accident risk at mines.

Section 2 describes economic aspects of coal sector with focus on coal prime cost and price ratio, sector unprofitability and governmental backing.

Section 3 outlines social and environmental problems in coal-mining areas.

Section 4 provides calculations of greenhouse gas emissions caused by coal mining and combustion and indicative estimates of expected growth of these emissions due to the increase of coal share in the energy balance of Ukraine pursuant to the base scenario of the Energy Strategy by 2030.

Section 5 explains the need to remove the sector financing and lists key policy approaches to reduce greenhouse gas emissions, including CO2 emissions tax and emissions trading scheme.

The report also contains recommendations for improvement of energy policy and strategic development of the coal industry. Hopefully, relevant government authorities will take our suggestions into consideration. This report might also be useful for public organizations.

Problems of Ukraine’s coal sector and greenhouse gas emissions from coal mining and consumption