Global Eco-Industrial Parks Programme - Ukraine: Country Level Intervention

Report on EIP Incentives

Thanks to the strong support of the Ministry of Economy of Ukraine, the project has continued implementing the EIP Policy Advice component.

The Report on EIP Incentives identifies stimulus and supporting mechanisms for EIP establishment and development. The report presents existing and possible non-financial and financial incentives to support EIPs development in Ukraine, in order to ensure practical implementation of the EIP model, industrial symbiosis, and cleaner production. The proposal for new EIP incentives, presented in the figure below, includes support for the development of EIP infrastructure, through the State Regional Development Fund, partial compensation of the loan rate and non-refundable funding for the arrangement of parks engineering and transport infrastructure by expenses of state and regional funds, state subsidies for construction, reconstruction, repair of engineering and transport infrastructure.

Regarding the environmental performance, it is proposed that a dedicated national technological cooperation programme will be launched to incentivize industrial symbiosis, together with the emission of “green” bonds for projects in EIPs and the establishment of a partnership between the GEIPP Ukraine Project and the Private Financing Advisory Network, which can create a basis for attracting investors to EIP projects. Specialized loans would feature conditions targeted to mainstream such a practice. Regarding the economic performance of EIPs, the development of a comprehensive state support programme for EIPs is proposed, including financial and non-financial support for EIP initiators, management companies and tenants. Other proposed incentives include the amendment of the Tax Code of Ukraine with provisions of exemption from VAT operations, and of the Customs Code, with provisions of exemption from customs duty on imports of equipment in the manufacturing industry within EIPs.