Creating a competitive market for solid biofuels: the role of the electronic trading system and public procurement

Abstract

The article is a part of a series of works dedicated to the problems of legal regulation of the creation and functioning of the system of electronic trade in solid biofuel as a tool of intensifying the production of biofuel, as well as ensuring sustainable development. Special consideration is given to the issue of participation in the electronic trading system of contracting authorities within the meaning of the Law of Ukraine «On Public Procurement», which requires a clear definition, since the existence of two parallel markets for trading significant volumes of solid biofuel can lead to the leveling of the idea and purpose of creating an electronic trading system. The categories of contracting authorities for which it is expedient to provide the obligation to purchase a set percentage of solid biofuel in the electronic trade system are detailed. It is proposed that such an obligation should be extended to contracting authorities within the meaning of the Law of Ukraine «On Public Procurement» who, due to the special sphere in which they carry out their activities, systematically purchase large volumes of solid biofuel, namely: legal entities in accordance with clause 4, part 1 of article 2 of the Law of Ukraine «On Public Procurement», which carry out activities in the field of ensuring the production, transportation, and supply of thermal and electrical energy to consumers, drinking water, functioning of centralized drainage and meet the characteristics established by the Law. Taking into account the obligations of Ukraine within the framework of the EU-Ukraine Association Agreement, as well as the need to ensure compliance with the Sustainable Development Goals, the feasibility of gradually introducing «green» public procurement of solid biofuel has been proven, taking into account the fact that certain volumes of biofuel will be purchasedby such categories of contracting authorities in the meaning of the Law of Ukraine «On Public Procurement», as state and local government bodies and legal entities that ensure the needs of the state or territorial community, specifically in the public procurement system. The problematicaspects of the registered draft of the Law of Ukraine «On Amendments to Certain Legislative Acts of Ukraine Regarding the Development of Electronic Trade in Alternative Fuels» No. 8052, which is currently under consideration by the Verkhovna Rada of Ukraine, are emphasized.