PUBLIC PROCUREMENT OF ’GREEN’ ENERGY IN THE CONTEXT OF UKRAINE’S INTEGRATION PROCESSES TO THE EU AND THE WTO

Author
, PhD in Law, Academic Secretary, Ukraine, Kyiv

In heading

 Law;

Signed print

 10.06.2019

Issues number

 2019 - № 2 (37)

Page

 130-155

Type of articles

 Scientific article

Code UDK

 346.546

ISSN print

 2411-5584

Abstract

 Problem setting. In the context of the growing importance of renewable energy in ensuring national energy security of Ukraine, including the binding commitments within Paris Agreement and the need to implement UN Sustainable Goal on affordable and clean energy, it is important to do research on public procurement as a potential tool for increasing consumption of “green” energy and protection of environment. The instrumental use of
public procurement is stipulated by its size, e. g. it accounts for around one-fifth of global gross domestic product. There is no specific regulation on public procurement of “green” energy in Ukraine, however, in the context of Ukraine’s international obligations within the EU and the WTO the procurement of renewable energy could lead to de-facto discrimination, especially in the case of using requirements to purchase energy from renewable sources in technical specifications.
Recent research and publications analysis. The requirements to use energy from the renewable sources in public procurement is highly debated issue within the foreign scholars, however, there is no in-depth analysis of this problem among Ukrainian scientists.
Paper objective. The aim of the article is to define potential benefits and challenges of public procurement of “green” energy in the context of Ukraine”s integration processes to the EU and the WTO.
Paper main body. The author gives special consideration to the academic debates on the requirements to use electricity from renewable sources in technical specifications in the international trade, as it can lead to discrimination, because “green” electricity and electricity from traditional sources are different only in the methods and processes of its production, however, are the same in consumption stage. Such processes and production
methods do not change the commercial or practical substitutability of the products. Within the framework of commitments to the EU, Ukraine has more opportunities to use procurement to stimulate the production and consumption of electricity from renewable sources than in the framework of the WTO obligations, which is due to the fundamental objectives underlying the two systems.
Conclusions of the research. Based on the importance of renewable energy for Ukraine”s energy security and environmental protection the author proposes to implement the EU approach for public procurement of “green” energy, which allows contracting authorities to use requirement on processes and production methods in technical specifications even if it does not form part of the material substance of the subject-matter of the contract with the only restriction not to pose the requirements on the general practices of economic operators which are not connected with the production processes of the specific procurement. In the context of public procurement of “green” energy within the framework of the WTO Ukraine has an opportunity to invoke the article III of the Government Procurement Agreement on general exceptions with the necessity to protect human, animal or plant life or health. However, the burden of proof will rest with Ukraine as party that invokes an exception.
Short Abstract for an article
Аbstract. The article is dedicated to the peculiarities of public procurement of “green”energy within the obligations of Ukraine to the EU and the WTO. The author gives special consideration to the debatable aspects of the use of requirements for the purchase of electricity from renewable sources in the technical specifications, which in international trade can lead to discrimination, since “green” electricity and electricity from traditional sources are different only in the methods and processes of its production, but are the same at the stage of consumption. The author makes suggestions on the implementation of public procurement of “green” electricity in Ukraine, taking into account the requirements of the obligations to the EU and the WTO.

Keywords

 public procurement, electricity from renewable sources, technical specifications, environmental protection, EU-Ukraine Association Agreement, WTO Government Procurement Agreement.

Reviewer

External reviewer

Article in PDF

 130-155

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Code DOI

 10.31359/2411-5584-2019-37-2-130

24.05.2019