At the UN Climate Change Conference COP26, the Powering Past Coal Alliance (PPCA) announced an expansion of its coal phase-out initiative. DTEK was the first Ukrainian company to join the PPCA initiative, uniting more than 165 members. The company aims to achieve carbon neutrality by 2040 and supports the global fight against climate change.
The world has entered a new phase of the energy transition in which the widespread use of renewable energy sources will gradually replace fossil fuels. The International Energy Agency plan to avoid the worst effects of climate change means all countries and companies need to stop building coal-fired power plants now, and OECD countries need to phase out existing power plants by 2030, with the rest of the world following by 2040.
“This is what society demands and the reality of what we need to do to accelerate the transition to a carbon-free future. DTEK is investing in the construction of SPP and WPP, energy storage systems, modernization of electric grids, and is exploring the possibilities of hydrogen production,” said Dmytro Sakharuk, Executive Director of DTEK. “At the same time, DTEK’s goal is to preserve the production potential of existing enterprises, creating a new niche for them in the transforming electricity market. It is important that the energy transition in Ukraine takes place while considering the economic and social realities in the coal regions.”
Since2020, DTEK Energy, due to the lack of new reserves suitable for efficient coal mining, has been gradually ending the operation of mines. At the same time, the company is helping the communities where the coal mining enterprises operate to develop a roadmap for creating employment outside the industry. Successful transformation of Ukraine’s coal regions is possible with the active involvement of the state, businesses, and international partners.
The PPCA is an initiative by the UK and Canadian governments that began at the COP23 in November 2017. Countries that have already joined include Germany, France, Austria, Belgium, Denmark, Italy, and Spain. Companies that joined earlier include Unilever, Electricité de France (EDF), Engie, Iberdrola and the Virgin Group.
The PPCA and its members are committed to working together to increase support for the coal transition, especially in developing countries, bringing new and existing finance to bear, driving a just transition founded on credible social dialogue, and working with our members to develop and share practical solutions.
The PPCA aims to:
- Secure commitments from governments and the private sector to phase out existing unabated coal power
- Encourage a global moratorium on the construction of new unabated coal-fired power plants
- Shift investment from coal to clean energy, including by working to restrict financing for coal-fired projects
- Achieve coal phase-out in a sustainable and economically inclusive way, including appropriate support for workers and communities.
The PPCA is at the forefront of the global effort to deliver the Paris Agreement. Phasing out coal-fired electricity is one of the most important steps to tackle the climate crisis. The IEA found that CO2 emitted from coal combustion was responsible for over a third of the 1°C increase in global average annual surface temperatures above pre-industrial levels. This makes coal the single largest source of global temperature increase.
The PPCA encourages all members to endorse the Powering Past Coal Alliance Declaration – including a commitment to phase out coal by 2030 in the OECD and EU, and by no later than 2050 in the rest of the world. It also offers membership to national governments that are taking ambitious actions on coal phase-out (but that are not yet able to meet the 2030 and 2050 timeframes).
Since its launch by the UK and Canadian governments at COP23 in 2017, the PPCA has been increasing its reach and influence. It currently has over 100 members who are playing a pivotal role in driving global coal phase-out efforts. One third of the OECD’s total coal capacity has now been scheduled to close by 2030 through retirement commitments and phase-out policies – Powering Past Coal Alliance members are driving this shift.
DTEK is the leading and biggest private investor in Ukraine’s energy sector.
DTEK’s companies are involved in coal and natural gas extraction; electricity generation from wind, solar, and thermal power plants; energy resources trading in national and international markets; distributing and supplying electricity to consumers; providing energy efficiency services to customers; and developing high-speed charging station networks.
According to the new 2030 strategy, DTEK seeks to transform into a more efficient, eco-friendly, and technologically advanced company, guided by ESG principles. DTEK routinely uses novel, innovative technologies in its activities, cultivates new areas of focus for business, and continues to work towards achieving the sustainable development of Ukraine’s society.
DTEK’s goal is to achieve carbon neutrality by 2040.
The company employs 60,000 people. Moreover, DTEK and its companies have been recognized as Ukraine’s best employers by EY, the international auditing company, and Ukrainian business publications.
In 2020, DTEK’s capital investments amounted to UAH 12bn, with tax deductions at UAH 21bn.
The company is fully owned by SCM Limited. The final beneficiary is Rinat Akhmetov.