Abstract

During the transition to a market economy, many countries with a planned economy in Central and Eastern Europe face similar challenges when the established socio-economic systems and infrastructures deemed inefficient in a market economy. Also new issues are being raised by the trends of globalization and the vision of sustainable development. In the energy sector the challenges raised by the Kyoto Protocol and its implementation mechanisms are especially interesting, because they are intertwined with other socio-economic sectors.

This paper addresses the challenges in the energy sector for transition countries, taking the case of bio-energy in the Ukraine as a prime example of a country undergoing major changes in its economic structures. Given the large potential for bio-energy development in the Ukraine, the current dependence on imported energy resources which threatens the Ukraine'??Â?Â?s energy security,and the economic, social and environmental benefits associated with bio-energy, this paper investigates drivers and barriers to an increased use of bio-energy in the Ukraine.

The paper was written by a group of MSc students of the International Institute for Industrial Environmental Economics at Lund University during a field trip to Kiev city and the Lviv region in Ukraine. The field trip has been supported by the Swedish Institute.