For the past several years we have been actively involved in monitoring legislation and practices in the area of Renewable Energy (Ukrainian legislation uses the terms “alternative” and “on-conventional”), Ukraine’s implementation of its commitments under the 1992 UN Framework Convention on Climate Change (“UNFCCC”) and the Protocol that was adopted at the third session of the conference of the parties to the UNFCCC in Kyoto, Japan on 11 December 1997 (“Kyoto Protocol”), legislation on “Green Tariffs”, the 2011 Amendments to the Law of Ukraine “On Electrical Energy” with regard to local content requirements (“LCR”) for renewable energy projects, the activities of the two key regulators – the National Commission on Regulation of Power Industry (known by its Ukrainian abbreviation “NCRE”) and the State Agency of Ukraine on Energy Efficiency and Energy Conservation, the new legislation being prepared in the renewables area, and various projects in this sector, including EBRD’s Ukraine Renewable Energy Direct Lending facility (UREDLF or the Facility), which is debt financing to local enterprises in Ukraine for realization of renewable energy projects (including wind, small hydro, solar, geothermal and biomass).
We have done comprehensive work for multinational clients on several Emission Reduction Units Purchase Agreements ("ERPA") joint implementation projects with their Ukrainian counterparties, and on issuance and transmission of the Emission Reduction Units ("ERUs") by the Ukrainian Government, covering all relevant regulatory aspects and the transactional documentation for these projects, as well as assisting clients with drafting ERPA Guidelines and other policies. We also adapted ERPA templates to Ukrainian legal requirements and coordinated negotiations on ERPA terms and conditions with Ukrainian counterparties of our multinational clients.
Our firm has carried out several due diligence efforts with regards to the Sellers of ERUs, including reviewing their plan to reduce emissions, NEIA approvals of the plan and "support certificate", the second stage of implementation of the plan and relevant documentation, its expert examination and the NEIA approval certificate, as well as Seller's account in the National Register.
We have also conducted extensive research and prepared several reports for the multinational clients interested in investing in Ukraine’s Renewable Energy sector, regularly updating them on the changes in the applicable legal regime.