Carbon footprint of products can close European markets for Ukraine
The European Union's Green Deal aims at a technological shift in the energy sector, which implies a complete phase-out of fossil energy by 2050, switching to Green technologies, including the production and usage of hydrogen. There was invented a new term as environmental neutrality. Nowadays, the European "Hydrogen Strategy" has been developed and launched. EU member states are obliged to develop their own strategies with implementation in designated dates. For instance, the Germany's strategy can already be read. It clearly spelled out the course, made calculations of hydrogen consumption and shown that their own resources for the production of green fuel are not enough and they will turn to neighbor countries for appropriate supplies. Likely, it will be affordable for EU to supply this fuel from the countries of northern Africa, where the insolation for solar power plants is the best among the nearest neighbors. However, Ukraine is seen as a potential partner. Our goal is not to miss a historic chance. The advantage is the existing gas transportation system and the course towards European integration.
The carbon footprint, in essence, is the amount of CO2 emissions per ton in the supply chain of conditional type of goods. For example, in a ton of steel produced in Ukraine there will be more of this trace, because our furnaces emit more CO2. Otherwise, footprint of hygiene products will be less, because electricity combaines a mix of thermal power plants, nuclear and renewable plants. In any case, our producers will have to pay an additional tax on the border with Europe. The exception will be those who will be able to transform their businesses and use only Green Energy.
According to experts, the cost of an import tax in the EU can range from 20 to 30 Euros per metric ton of carbon dioxide emissions, which will lead to an average decrease of profits by 20%. For a low-margin business, in fact, this means the closing of the European market.
There are two ways in the situation. Both are in refocus to other markets or in the modernization of their own production. If the European market is the focus of business, then now our producers need to think about a strategy for installing their own solar, wind, biogas power plants and / or buying only green electricity on the market.