Green Light for Green Generation!

The Verkhovna Rada has adopted Law No. 8138 on state support for the construction of new biomethane plants!

The relevant decision was adopted on 9 August. While drafting Bill 8138, provisions on improving the investment climate and the attractiveness of potential investment projects were considered, but the idea arose to extend the law specifically to projects aimed at generating biogas and biomethane. And by voting for the bill, parliamentarians supported this proposal!

Extending the law’s provisions to the biogas industry should make green energy generation projects more attractive to potential investors through:

💰exemption from corporate income tax for 5 years,

🪙 exemption from VAT and import duty when importing new equipment and components,

🧰 exemption from land tax.

Two more bills were also adopted to stimulate the launch of bioenergy projects.

The draft laws provide for:

🔹exempting bioenergy enterprises from paying carbon dioxide emissions tax;

🔹creating a register of installations using biofuel to administer the zero rate of carbon dioxide tax.

These innovations do not in themselves mean that new biomethane plants will appear in every community across the country tomorrow. But this sector has extremely high potential.

Therefore, creating favourable conditions for the implementation of new projects is a very significant step forward by the state.