DTEK advocates for carbon neutrality through fair coal transformation

DTEK advocates for carbon neutrality through fair coal transformation

DTEK16 June 2020

Achieving carbon neutrality by 2040 through the transformation of the generation capacity portfolio is one of the strategic goals of the DTEK Group. Dmytro Sakharuk, CEO of DTEK Energy, spoke about this during his speech at the 20th UN Global Compact Leaders Summit.

DTEK advocates for carbon neutrality through fair coal transformation

The global trend of decarbonization of the economy forms a new reality and forces energy companies to adjust their strategies and revise their portfolio of assets. Replacing high-carbon generation with low-carbon generation will significantly affect the economy and social environment of the regions where DTEK coal enterprises operate. To minimize the negative consequences, a program underpinned by a fair socio-economic transformation of coal regions (Just Transition) should be implemented.

“There are more than 250,000 people in Ukraine who depend on the work of the coal industry. These are not only employees of enterprises, but also residents of single-industry towns where mines operate. DTEK Energy employs more than 30,000 miners. Our task, as a responsible employer, is to contribute to the creation of new jobs and to ensure the transformation of regions at the local, national and international levels. Therefore, since 2018, we have been an active participant in the European platform for fair coal transformation”, said Dmytro Sakharuk.

DTEK, together with European experts, is working on a pilot transformation project in Dobropillia, where the company's coal mining enterprises operate.

“We already have achievements on water supply and heating in Dobropillia, but our main task is to develop an integrated transformation approach in cooperation with regional and national authorities. DTEK provides expertise and resources, which lay the foundation for a fair transformation. The role of the state is to develop regulatory initiatives and mechanisms to ensure this fair transition”, said DTEK Energy CEO.

Ukraine has become an active participant in the process of transforming coal regions and has identified this as one of the priority tasks on the path to carbon neutrality. The Ukrainian government has established the Coal Transformation Center for the Coal Industry, and the European Commission, together with international financial institutions, is finalizing the coal transformation program for the Western Balkans and Ukraine, which will provide expertise and support to countries in transition.

Recall that DTEK has been a member of the UN Global Compact since 2007 and is guided in its activities by the Sustainable Development Goals of the UN DG. Twelve of the UN goals are integrated into the long-term strategy and determine the investment priorities of the DTEK Group.

Profile

DТЕК is the largest private investor in Ukraine’s energy sector.

DTEK Group produces coal and natural gas, generates electricity at thermal, solar and wind power plants, distributes electricity, supplies electricity to end consumers, provides energy efficient solutions and develops a network of EV charging stations.
In 2019, DTEK’s capital investments totalled UAH 23 bln. Moreover, the company paid UAH 23.4 bln of taxes. DTEK employs 70 thousand people.

The company is 100% owned by SCM Limited. Ultimate beneficial owner – Rinat Akhmetov.

 

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