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UNIDO and the European Union: An ongoing dialogue on the green industrial recovery programme for Ukraine

27 October 2023

DG Newsletter 7 Ukraine

BRUSSELS, October 2023 – UNIDO continued a dialogue with various services of the European Union (EU) to reinforce strategic partnership in the framework of the upcoming green industrial recovery programme for Ukraine. UNIDO’s ongoing work in Ukraine already benefits from the financial support of the EU under the EU4Environment Programme. In addition to other donors, such as Switzerland and Japan, UNIDO works closely with EU members, including Austria, the Czech Republic, Germany and Poland, providing a platform for the Team Europe approach.   

Based on a request of the Government of Ukraine, UNIDO is working to formulate a green industrial recovery programme, building on the Organization’s unique expertise, well-established networks and continuous work in the country. The programme addresses the critical challenges that Ukraine currently faces as a result of the war, putting forward an integrated and result-oriented set of cross-dimensional interventions, supporting the country’s economic recovery and industrial development, as well as preparing the ground for EU accession.   

The UNIDO programme outlines several key priority areas focusing on the development of micro, small and medium-sized enterprises (MSMEs) and the creation of employment and income generation opportunities for war-affected people with a particular emphasis on vulnerable groups, including women, youth, internally displaced persons and people with disabilities. The programme will help MSMEs retain and expand their operations in spite of the war and integrate into regional and global markets. UNIDO also works to foster a green economy, ensuring that principles of circularity, environmental protection, as well as energy and resource efficiency are at the centre of industrial recovery efforts. As a cross-cutting priority, UNIDO promotes the local approach, engaging directly with municipalities and communities for long-term sustainability and resilience building. 

UNIDO’s work in response to the war in Ukraine is part of a long-standing commitment to the country’s sustainable industrial development, economic growth, social well-being and environmental sustainability. UNIDO has been improving and greening the productive capacities of Ukraine through industrial policymaking, technical cooperation, capacity-building, peer learning, knowledge transfer and private sector connections for many years. By capitalizing on its unique experience in resource-efficient and cleaner production, eco-industrial parks, quality infrastructure and standards, energy management systems, value chain development and cleantech innovations, among others, UNIDO works to assist in Ukraine’s accession to the EU. In particular, work contributes to the attainment of the criteria under Chapter 20 on industrial and enterprise policy of the EU acquis. 

The ongoing discussions with the partners from the European Commission, the EU External Action Service and the European Investment Bank focus on the strategic alignment of the UNIDO programme with the Ukraine Plan to be supported by the EU’s Ukraine Facility. Mr. Gerd Müller, Director General of UNIDO, met with Mr. Gert Jan Koopman, Director General of the Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR), during the recent Global Gateway Summit in Brussels and discussed the clear synergies between UNIDO’s unique work in Ukraine, the needs of the Government and people of Ukraine and the EU’s vision for the country’s recovery. Discussion also focused on the contributions that UNIDO has made to the Ukraine Plan and how the Organization is working to foster a shared understanding of the issues Ukraine faces. 

UNIDO had an opportunity to meet the EU delegation to Ukraine during the visit to Kyiv on 2-5 October 2023, where fruitful discussions with national counterparts and development and funding partners took place. The outcomes of the visit reiterated the strong commitment of the Government of Ukraine towards cooperation with UNIDO, as well as the readiness of donors to explore avenues for new joint activities.  

Currently, UNIDO is preparing a comprehensive industrial diagnostic study on Ukraine, containing unique primary data and analysis of the impact of the war on the country’s industrial sectors and value chains, existing bottlenecks and emerging opportunities. It is planned that the study will be officially launched and presented in Brussels in early 2024. In the meantime, UNIDO will continue to implement and upscale projects currently ongoing in Ukraine, drawing on the Organization’s comparative advantages and the strong potential in the country for immediate economic results. 

More information can be found at: https://www.unido.org/green-recovery-vision-ukraine