In issue 217 (issue 210 before the audit) of the Reform Index, thirteen reforms have been included for the period from July 17 to July 30. However, none of them crossed the threshold of +2 points, which, in our opinion, separates significant reforms from less important ones. The Index’s overall rating is +0.9 points on a scale ranging from -5 to +5 (in the previous issue, its value was also +0.9 points).
Chart 1. Reform Index Dynamics
Chart 2. Reform Index and its components in the current round
The law on the restoration and transformation of green energy, +1.5 points
The law on the restoration and transformation of green energy, which President of Ukraine Volodymyr Zelensky signed at the end of July, is intended to address a range of issues in the field of renewable energy sources (RES).
One of the key innovations of the law is the introduction of a registry of guarantees of origin for electricity generated from renewable energy sources. Guarantees of origin will confirm that goods and services produced or provided using green electricity leave a smaller carbon footprint compared to traditional energy sources.
Such confirmation will make it possible to avoid additional taxation on the export of Ukrainian goods to the EU, as the guarantees will attest that green electricity was used in their production.
Furthermore, producers of green electricity will be able to independently sell their electricity on the market and receive a subsidy from the state if the market price is lower than the green tariff. Previously, RES producers could only sell electricity at the green tariff to the state-owned enterprise “Guaranteed Buyer.” According to the law, SOE Guaranteed Buyer will be able to export Ukrainian green electricity on the open market terms and partially cover the cost of the green tariff with the earned funds.
It is expected that the provisions of the law will enable the entry of new players into the RES market and promote more efficient trading of green electricity.
Information about the Reforms Index project, the list of Index experts and the database of the regulations assessed are available here.
The law on the service in local self-government bodies, +1.5 points
The law on the service in local self-government bodies will come into effect six months after lifting the martial law. This document comprehensively updates the principles of service in local self-government. Specifically, it distinguishes between elected positions and positions of local self-government officials. The law also guarantees the political impartiality of local self-government officials. It prohibits them from demonstrating their political views or stance toward political forces, being members of local councils, or engaging in election campaigning. Violations of these requirements may lead to disciplinary responsibility.
According to the law, elected positions are chosen during local elections, while local self-government officials are appointed based on competition results or other procedures. Therefore, individuals holding political positions under the new law do not belong to the category of local self-government officials. The positions in local self-government are divided into three categories: I – heads of executive bodies and heads of departments of executive bodies of rural, township, city, district, and regional councils; II – heads of structural units in local self-government bodies; III – chief and leading specialists and other positions not classified in the first two categories.
The new law also regulates the remuneration of work in local self-government bodies, including the determination of official salaries and seniority and other bonuses.
Chart 3. Value of Reform Index components and number of events
Reform Index from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in six areas: Governance, Public Finance, Monetary system, Business Environment, Energy, Human Capital.
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