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This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0

1 National University of Life and Environmental Sciences of Ukraine, Ukraine (corresponding author)
E-mail: gafurova.olena@gmail.com
ORCID: https://orcid.org/0000-0002-1986-826X
2 National University of Life and Environmental Sciences of Ukraine, Ukraine
E-mail: ermolenko@nubip.edu.ua
ORCID: https://orcid.org/0000-0002-4295-4158
3 National University of Life and Environmental Sciences of Ukraine, Ukraine 
E-mail: tomanovak1980@gmail.com
ORCID: https://orcid.org/0000-0003-2371-3014

DOI: https://doi.org/10.30525/2256-0742/2025-11-3-203-211

LEGAL FOUNDATIONS FOR THE DEVELOPMENT  
OF A CIRCULAR BIOECONOMY:  

UKRAINIAN AND EUROPEAN DIMENSIONS
Olena Hafurova1, Volodymyr Yermolenko2, Tamara Novak3

Abstract. The relevance of researching the legal foundations of the circular bioeconomy is determined by a number 
of factors. Firstly, there is an objective need today to find an effective alternative to the linear economic model, 
which is based on intensive extraction and use of resources, followed by waste disposal, and which has a negative 
impact on the environment and depletes natural resources. The authors consider such an alternative to be a circular 
economy based on the principles of closed-loop technologies and rational resource and energy consumption. 
Secondly, given the potential of Ukraine's agricultural sector and the current realities of its functioning, the formation 
of a circular bioeconomy model, in which agricultural production should play a key role, is promising for Ukraine. 
Thirdly, it is time to develop a legal framework for regulating relations in the field of circular economy and circular 
bioeconomy. This process for Ukraine should be based on international, primarily European, experience, which in 
turn requires research into the relevant provisions of European Union legislation. It is also necessary to develop 
a unified conceptual and categorical framework. Conducting scientific research on these issues is the purpose of 
this article. Its achievement was facilitated by the use of such methods of scientific cognition as: philosophical 
(dialectical) method, general scientific (formal logical and analytical methods) and special scientific (formal legal 
and comparative legal) methods. As a result, the authors formulated their definition of the concept of "circular 
bioeconomy" as "an economic model aimed at creating conditions for ensuring food security in the country 
through the functioning of waste-free (including) agricultural production based on the use of mainly bioenergy 
resources, which reduces the negative impact on the environment". The paper argues for the circular bioeconomy 
principles to be used in rebuilding rural areas that got hit by the war. It shows that the circular bioeconomy isn't 
really covered by Ukrainian laws at the moment. The present study aims to characterise the principles of state policy 
and existing measures of state support for bioenergy as a direction of the circular bioeconomy. The necessity of the 
implementation of a state target programme for bioenergy in Ukraine has been demonstrated. Particular emphasis 
is placed on the analysis of European Union legislation regulating circular bioeconomy relations, and its positive 
features that could be taken into account by Ukrainian lawmakers are identified. The generalisations obtained can 
serve as a basis for formulating the content of regulatory and legal acts in the field of circular bioeconomy and 
bioenergy, as well as material for promising scientific research on this issue.

Keywords: circular economy, circular bioeconomy, alternative energy sources, bioenergy, food security, natural 
resources, agricultural production, state support, waste, tax policy.

JEL Classіfіcatіon: K32, О13, Q01, Q16, Q42, Q57

1. Introduction
In today's world, more and more attention is  

being paid to preserving an environmentally safe 
environment and ensuring opportunities for the 

existence and development of current and future 
generations. The formation and functioning of the 
so-called circular economy can contribute to the 
achievement of these goals. According to experts, 



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the circular economy is the basis, the platform for 
implementing environmental innovations and 
increasing environmental responsibility. It is based 
on rational resource and energy consumption, 
reducing harmful impacts on the environment, and 
developing a socially integrated society (Vovk, 2022).  
In the 1980s and 1990s, when life sciences first  
came to the attention of foreign economists (Peterson, 
Kaaret, 2019), the concept of a circular bioeconomy 
was developed, based on the sustainable and efficient 
use of waste in general and biomass in particular. This 
gave impetus to the development of EU legislation in 
this area. Thus, in 2012, the European Commission 
adopted the communication "Innovating for  
Sustainable Growth: A Bioeconomy for Europe" 
(2012) (hereinafter referred to as the bioeconomy 
strategy), and in 2018, an updated communication 
entitled "A sustainable Bioeconomy for Europe: 
Strengthening the connection between economy, 
society and the environment" (2018) (hereinafter 
referred to as the updated bioeconomy strategy). 
While the first document only mentioned the need to 
develop a bioeconomy strategy (para. 1), the second 
one highlighted the need to maximise the contribution 
of the bioeconomy to the main priorities of European 
policy (para. 2) and to take action towards a sustainable 
circular bioeconomy (para. 4). Unfortunately, 
Ukrainian legislation does not pay sufficient attention 
to this issue. The first regulatory act that mentions the 
need to develop a circular bioeconomy is the Strategy 
for the Development of Agriculture and Rural Areas in 
Ukraine for the Period until 2030 (The Resolution of 
the Cabinet of Ministers of Ukraine "On Approval of 
the Strategy for the Development of Agriculture and 
Rural Areas in Ukraine for the Period until 2030 and 
Approval of the Operational Plan of Measures for its 
Implementation in 2025-2027") (hereinafter referred 
to as the agricultural development strategy), which 
defines it as a direction for the implementation of the task 
‘Promoting climate change mitigation and adaptation’ 
of strategic objective 5. Thus, it becomes relevant to 
conduct research on the legal aspects of the formation 
of a circular bioeconomy and its main directions (in 
particular, bioenergy) in Ukraine, taking into account 
international experience and European integration 
processes, which is the purpose of this scientific 
article. The primary objectives of the present study are 
threefold. Firstly, the relationship between the concepts 
of "circular economy" and "circular bioeconomy" as 
legal categories is to be defined, with the development 
of a definition for the latter. Secondly, the state of 
legal support for the development of bioenergy as the 
most promising direction of the circular bioeconomy 
for agricultural production and rural development is 
to be determined. Thirdly, key aspects of state policy  
and state support for bioenergy as a direction of the 
circular bioeconomy are to be analysed.

2. Analysis of Recent Researches  
and Publications

The problem of rethinking the existing linear 
economic model, expressed through the triad of actions 
"extract", "consume" and "dispose", and the need to 
find alternatives that would balance the economic 
and environmental needs of humanity, is not new to  
science in general or to legal science in particular.  
It is not the intention of this study to conduct 
a comprehensive historiography of scientific research 
in this field; rather, the focus will be on the findings 
of scientists in recent years regarding the legal aspects 
of the formation of a circular economy and circular 
bioeconomy. 

First of all, it should be noted that opinions in 
scientific circles regarding the prospects of circular 
economic models vary greatly. For example, Mario 
Giampietro believes that the concept of a circular 
bioeconomy is a symptom of a deep crisis in the science 
of sustainable development. The author highlights 
the following issues: the lack of a clear definition of 
the term "circular bioeconomy" in scientific, political 
and regulatory spheres; the difficulty of society 
in rethinking consumption patterns to ensure the 
"circularity" of production and business. Finally, 
Mario Giampietro (2023) claims that the fundamental 
concept of the circular economy – namely, "closing" 
the processes of modern economies by utilising their 
products as new raw materials – is contrary to the 
laws of thermodynamics. The authors of this study, 
while concurring with the thesis that it is impossible 
to ensure absolute cyclicality of economic processes,  
nevertheless align with the perspectives of scholars 
who discern significant prospects in the circular 
economy. This standpoint is echoed by researchers 
specialising in issues (including legal ones) pertaining 
to the establishment of a circular economy at the 
European Union level. In this instance, the foundations 
for a suitable legal framework are already in place, 
particularly within the domain of waste management. 
With regard to fundamental problems, scientists point 
to the lack of a universal approach to the concept 
of a circular economy and the lack of a systematic 
approach to the development and implementation of 
relevant regulations (Steenmans, Lesniewska, 2023). 
Additionally, a dearth of a clear and unambiguous 
definition of the circular economy concept is evident 
at the level of European Union directives on waste 
management (Stankevičius, Novikovas, Bakaveckas, 
Petryshyn, 2020). Scientists also justify the need to 
introduce, at the legislative level, collective responsibility 
of manufacturers, consumers and governments for the 
impact of products on the environment throughout 
their entire life cycle, including waste management 
after expiry. This is positioned as one of the legislative 
instruments for adapting society's behaviour to more 



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environmentally friendly production and consumption 
(Kyriakopoulos, 2021). A similar view (already at the 
level of Ukraine) is expressed by R. Naboka (2021), 
who justifies the need to strengthen the responsibility  
of manufacturers for their products at the end of their 
use in Ukrainian legislation and to provide incentives  
for these entities to transition to the principles of 
circular production. 

Research into circular economy issues at the level 
of individual EU countries also reveals a number of 
problems. These include an analysis of legislative 
initiatives, national strategies and legal mechanisms to 
stimulate Slovakia's transition to a circular economy, 
carried out by Matus Michalovic (2024). The author 
identifies gaps in national legislation and the absence 
of a roadmap for the circular economy. He justifies the 
need for Slovakia to develop a long-term concept and 
a strict implementation schedule for the introduction 
of a circular economy that embodies the principles 
of sustainable development. Ukrainian scientists  
highlight similar problems when researching the 
possibilities of adapting European experience in 
implementing a circular economy. Thus, M. Ruda, 
T. Yaremchuk, & M. Bortnikova (2021) argue for the 
need to develop and implement Ukraine's circular 
economy policy in a comprehensive manner in 
the context of global trends. They point to the low 
level of development of domestic "closed-cycle" 
economic sectors. The main shortcomings of strategic 
policy documents are identified (the National 
Waste Management Strategy of Ukraine until 2030)  
(The Resolution of the Cabinet of Ministers of Ukraine 
"On Approval of the National Waste Management 
Strategy in Ukraine until 2030"), the Basic Principles 
(Strategy) of Ukraine's State Environmental Policy for 
the period until 2030 (The Law of Ukraine "On the 
Key Principles (Strategy) of the State Environmental 
Policy of Ukraine for the Period until 2030"),  
National Waste Management Plan until 2033  
(The Resolution of the Cabinet of Ministers of Ukraine 
"On Approval of the National Waste Management 
Plan until 2033 and Recognition of Certain Acts 
as No Longer Valid"), and anticipation of minimal 
interaction and co-operation between relevant  
agencies. Klievtsievych Natalіia (2022) takes an 
identical position, further emphasising the need  
for the state to introduce incentives for both  
businesses and consumers to change the ways goods 
are produced and consumed, and positioning the 
transition to circular economy principles as one of 
Ukraine's strategic objectives. The conclusions of 
Maryna Yaremova and Liudmyla Tarasovych (2025) 
regarding the challenges of implementing a European 
circular bioeconomy in Ukraine are also important in 
the context of this work. The authors emphasise the 
need for coordination between state institutions in 
developing a unified bioeconomic policy and taking 
into account the experience of EU countries in terms 

of economic incentives for businesses to transition to 
circular business models. 

Thus, experts are virtually unanimous in their view 
that the prerequisite for the proper functioning of 
the circular economy and circular bioeconomy is the 
formation of appropriate policies, primarily at the 
state level, the definition of a unified concept of the  
circular economy and bioeconomy, and the unification 
of the categorical apparatus. 

3. Methodology 
The employment of methodological tools proved 

instrumental in accomplishing the objectives of the 
study and addressing the tasks delineated by the 
study's authors. The work employed a combination 
of philosophical (dialectical) methods and general 
scientific (formal logical and analytical) methods, as 
well as special scientific (formal legal and comparative 
legal) methods. The dialectical method formed the 
basis of the entire study, as it allowed to identify  
general domestic and European trends in the 
development of legal regulation of the circular  
economy, bioeconomy and bioenergy in its 
interconnection with environmental and social  
factors. The application of the formal-logical method 
made it possible to formulate the conclusions of the 
work and reveal the content of state policy in the 
field of circular bioeconomy in Ukraine. The analysis 
method was used in the process of reviewing scientific 
sources on the problems of forming and legislating 
the circular economy and circular bioeconomy.  
The formal-legal method made it possible to clarify the 
content of legal norms of regulatory legal acts in the  
field of circular economy, circular bioeconomy and 
bioenergy as a branch of the latter. Comparison of 
domestic and European legislation in the field under 
study became possible through the application of the 
comparative legal method of scientific knowledge.

4. Results and Discussions

4.1 The Relationship Between  
the Concepts of "Circular Economy"  
and "Circular Bioeconomy"

At present, there are divergent positions in scientific 
discourse. One such position is that of the former as 
an intersection of the bioeconomy and the circular 
economy. In contrast, another position is that of the 
latter as something greater than these two models 
separately. The latter thesis is confirmed by the objectives 
of the circular bioeconomy defined at the European 
level: ensuring food security; managing limited and 
depleted natural resources; reducing dependence on 
non-renewable resources; mitigating and adapting to 
climate change; creating jobs and supporting European 
competitiveness (Vovk, 2022).



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An examination of EU legislation in this domain 

reveals that the bioeconomy is delineated as a  
renewable component of the circular economy  
(para. 2of the updated bioeconomy strategy). In the 
authors' view, this emphasises the circular bioeconomy's 
defining feature: the use of renewable resources in 
the production process. In light of this, the opinion 
of foreign experts that the circular bioeconomy is 
an economy nourished by nature is reasonable. This 
new economic model focuses on using renewable 
natural capital and minimising waste, replacing a wide 
range of non-renewable, fossil-fuel-based products 
that are currently in use (The circular bioeconomy  
Knowledge Guide). Accordingly, the transition to 
such an economic model is one way to promote 
the development of a low-carbon society, which 
creates opportunities to address the climate crisis 
and biodiversity loss while increasing productivity 
and competitive success (Marshall, O’Dochartaigh, 
Prothero, Reynolds, Secchi, 2023). However, in addition 
to the positive environmental and energy effects,  
the practical implementation of the circular  
bioeconomy as a labour-intensive initiative can 
contribute to improving the employment rate of the 
local rural population and raising their standard of 
living. It is also advisable to implement the principles 
of the circular bioeconomy in the restoration of rural 
areas affected by the war and the reformatting of 
entrepreneurship through the launch of new closed-
cycle production facilities.

It should also be noted that today, EU legislators 
are significantly broadening the understanding of 
the bioeconomy, indicating that it covers all sectors 
and systems that depend on biological resources 
(animals, plants, microorganisms and derived biomass, 
including organic waste). In addition, it includes and 
interconnects: terrestrial and marine ecosystems and 
the services they provide; all primary production  
sectors that use and produce biological resources 
(agriculture, forestry, fisheries and aquaculture); and 
all economic and industrial sectors that use biological 
resources and processes to produce food, feed, bio-based 
products, energy and services (para. 1 of the updated 
bioeconomy strategy). As for national legislation, 
the agricultural development strategy stipulates 
that Ukraine will make every effort to ensure the  
functioning of a circular bioeconomy, particularly in 
the areas of resource restoration, recycling and the  
transition to renewable energy sources (hereinafter 
referred to as RES). 

4.2 Legal Foundations of Bioenergy  
as a Branch of the Circular Bioeconomy

In this article, the latter area will be examined in 
greater detail, as the issue of developing alternative 
energy sources is becoming increasingly pertinent in the  

context of current global trends in energy 
independence. Thus, the UN General Assembly 
Resolution "Transforming our world: the 2030 Agenda 
for Sustainable Development" (2015), adopted on 
September 25, 2015, identifies among the global 
sustainable development goals the need to strengthen 
international co-operation to facilitate access to 
research and technologies for clean energy, including 
RES, energy efficiency and advanced and clean fossil 
fuel technologies, and to promote investment in 
energy infrastructure and clean energy technologies.  
The development of this sector is particularly  
important for rural areas. For example, Regulation 
(EU) No 1305/2013 of the European Parliament 
and of the Council of December 17, 2013 on support 
for rural development by the European Agricultural 
Fund for Rural Development (EAFRD) and repealing 
Council Directive No 1698/2005 (2013) stipulates  
that rural regeneration involves investment in the 
creation, improvement or expansion of all types  
of small-scale infrastructure, including investment 
in renewable energy sources and energy saving  
(Article 20(1)).

The Association Agreement between Ukraine, on 
the one hand, and the European Union, the European 
Atomic Energy Community and their Member States, 
on the other hand, ratified by the Law of Ukraine of 
September 16, 2014, provides for co-operation between 
Ukraine and the EU in the field of development and 
support of renewable energy, taking into account the 
principles of economic feasibility and environmental 
protection, as well as alternative fuels, in particular 
sustainable biofuel production (Article 338). 

Today, agricultural production is increasingly 
being viewed as a source of renewable energy that is 
used in other sectors of the economy. For almost ten 
years, Ukrainian legislation has considered the agro- 
industrial complex to be a priority sector of the  
economy in terms of biofuel production, with 
a focus on import substitution (para. 1 of the List 
of Priority Sectors of the Economy, approved by the 
Resolution of the Cabinet of Ministers of Ukraine 
No. 843 of 14 August 2013) (The Resolution of the 
Cabinet of Ministers of Ukraine "On Approval of the 
List of Priority Economic Sectors"). According to the 
agricultural development strategy, bioenergy is directly 
linked to the circular bioeconomy (they are included 
in Task 1, "Promoting climate change mitigation 
and adaptation"). The bioenergy sector has perhaps 
the greatest potential for development in Ukraine.  
As stated in the National Renewable Energy Action 
Plan for the period up to 2030, approved by the  
Cabinet of Ministers of Ukraine on August 13, 2024, 
No. 761, this state of affairs is due to the peculiarities  
of the climate, the potential of the agricultural sector,  
and the availability of the necessary workforce. Such 
types of biomass as agricultural residues (primary, 



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formed in the field during harvesting; and secondary, 
formed at enterprises during crop processing and in 
the form of animal manure) and energy crops (used 
for producing solid biofuel and biogas) possess the  
greatest energy potential (The Resolution of the  
Cabinet of Ministers of Ukraine "On Approval of 
the National Renewable Energy Action Plan for the 
Period until 2030 and the Plan of Measures for its 
Implementation").

According to available estimates, the development 
of bioenergy could satisfy about 11% of the country's 
natural gas needs and 19% of its electricity needs. 
The benefits of reducing greenhouse gas emissions 
are estimated at approximately 8.2 million tonnes of 
CO2 equivalent. (The Resolution of the Cabinet of 
Ministers of Ukraine "On Approval of the Strategy for 
the Development of Agriculture and Rural Areas in 
Ukraine for the Period until 2030 and Approval of the 
Operational Plan of Measures for its Implementation 
in 2025-2027"). Given Ukraine's potential as an 
agricultural country, the prospects for producing 
alternative fuels such as biobutanol, biohydrogen, 
biogas, bioethanol and others from agricultural crops 
and agricultural waste are quite significant. This is  
clearly illustrated at the level of policy documents. 
According to Annex 4 of the National Renewable 
Energy Action Plan for the period up to 2020, 
the expected contribution of renewable energy to  
achieving the indicative target for renewable 
energy sources in the transport sector was to 
increase from 130,000 tonnes of oil equivalent in 
2009 to 1,068,000 tonnes of oil equivalent in 2020  
(The Resolution of the Cabinet of Ministers of  
Ukraine "On National Action Plan for Renewable  
Energy for the Period until 2020"). The National 
Renewable Energy Action Plan for the period 
up to 2030 envisages an increase in this figure to 
1,138 thousand tonnes of oil equivalent in 2030  
(The Resolution of the Cabinet of Ministers of  
Ukraine "On Approval of the National Renewable 
Energy Action Plan for the Period until 2030 and 
the Plan of Measures for its Implementation"). This 
gives grounds to assert that the production of biofuels 
by agricultural producers creates conditions for 
the greening of agricultural production, because, as 
T. V. Kurman (2017) rightly points out, such activity 
ensures a further transition to so-called "bioenergy" 
relations, i.e., practically to waste-free production. 

4.3 State Policy in the Field of Bioenergy  
as a Direction of Circular Bioeconomy

Despite its significant potential, the bioenergy  
sector is developing rather slowly. At the same time, 
as experts rightly point out, the implementation 
of appropriate state policy and state support is 

a prerequisite for achieving the above-mentioned 
indicators (Pryshliak, 2021). The need to take 
measures to provide state support for this sector is 
mentioned in a number of regulatory and legal acts. 
Thus, among the main tasks of the State Targeted 
Economic Programme for Energy Efficiency  
and Development of Energy Production from  
Renewable Energy Sources and Alternative Fuels for 
2010-2021, approved by Resolution of the Cabinet of 
Ministers of Ukraine No. 243 of 1 March 2010 (2010),  
the following were envisaged: implementation of  
projects for the construction of facilities for the 
production of biodiesel and fuel bioethanol; 
implementation of projects for the construction  
of plants operating on solid biofuel and biogas; 
implementation of pilot projects for the construction 
of biomass-fired power generation plants; development 
of a feasibility study and design for the construction of 
a model modern mini-HPP plant fuelled by biomass 
and other alternative fuels. The Law of Ukraine  
"On Alternative Types of Fuel" (2000) stipulates  
that in order to stimulate the development and 
implementation of new technologies, equipment and 
materials in the process of production (extraction) of 
alternative types of fuel, legal entities and individuals 
shall be granted subsidies, grants, tax, credit and other 
benefits established by the relevant laws of Ukraine 
(Article 9). Decree No. 1094/2003 of the President 
of Ukraine dated September 26, 2003 stipulates the 
introduction of economic mechanisms to stimulate 
the production of machines, devices, power plants, and 
other technical means that run on fuel from biological 
raw materials, and their use in industry, energy, and 
transport (para. 2 of the Decree of the President of 
Ukraine "On Measures to Develop Fuel Production 
from Biological Raw Materials").

It is worth dwelling separately on the analysis of 
legislative changes that took place on May 1, 2025, 
due to the entry into force of the Law of Ukraine  
"On Amendments to Certain Laws of Ukraine 
Regarding the Mandatory Use of Liquid Biofuels 
(Biocomponents) in the Transport Sector"  
(The Law of Ukraine "On Amendments to Certain 
Laws of Ukraine Regarding the Mandatory Use of 
Liquid Biofuels (Biocomponents) in the Transport 
Sector") regarding the mandatory share of liquid  
biofuel (biocomponents) in motor gasoline volumes 
of at least 5% by volume (except for gasoline with an  
octane rating of 98 and above and gasoline supplied 
for the needs of the Ministry of Defence of Ukraine). 
As V.S. Grachuk rightly points out, in order to meet 
this requirement, it is important that such biofuels 
or biocomponents meet the sustainability criteria 
set out in the same Law. In other words, they must be 
environmentally friendly, rather than simply being 
formally produced from biomass (Grachuk, 2025). 



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These innovations are largely due to Ukraine's European 
integration policy, as the provisions of Directive 
2009/28/EC of the European Parliament and of the 
Council of April 23, 2009 on the promotion of the 
use of energy from renewable sources and amending 
and subsequently repealing Directives 2001/77/
EC and 2003/30/EC (2009) and Directive (EU) 
2018/2001 of the European Parliament and of the 
Council of December 11, 2018 on the promotion of 
energy from renewable sources (2018).

It is expected that the introduction of mandatory 
use of liquid biofuels (bio-components) in the 
transport sector at the state level will contribute to 
the development of agricultural production. First and 
foremost, this concerns corn cultivation and alcohol 
production. According to V. Koval, the Ukrainian 
Minister of Agrarian Policy and Food, bioethanol 
production could become an important area for the 
agricultural sector. This is because it enables domestic 
farmers to remove significant volumes of raw materials, 
such as corn, from the export market. By processing 
these materials into bioethanol, they can obtain 
a high added value and, consequently, additional  
profit ("Bioethanol in Ukraine: opportunities for 
farmers and market prospects"). This step is also seen as 
a way to cut greenhouse gas emissions, boost Ukraine's 
energy independence by increasing domestic fuel 
production, and save money on imported oil products.

A telling example of how the state supports the 
industry is its tax policy. Currently, transactions 
involving the importation into the customs territory of 
Ukraine of equipment that runs on renewable energy 
sources, equipment and materials for the production  
of alternative fuels or for the production of energy  
from renewable energy sources, materials, equipment, 
and components used for the production of equipment 
that runs on renewable energy sources, etc., are 
exempt from value added tax (hereinafter referred to 
as VAT) (Article 197.16 of the Tax Code of Ukraine). 
Temporarily, until January 1, 2019, transactions 
involving the supply of machinery, equipment and 
devices used for the reconstruction of existing and 
construction of new biofuel production facilities and 
for the manufacture and reconstruction of technical 
and transport vehicles for the purpose of consuming 
biofuel were exempt from VAT, if such goods are not 
produced and have no analogues in Ukraine, as well 
as technical and transport vehicles, including self-
propelled agricultural machinery running on biofuel, 
if such goods are not produced in Ukraine (para. 2, 
sub-section 2 of the Transitional Provisions of the Tax 
Code of Ukraine). As S.A. Obolenska (2017) correctly 
observes, this term is not adequately substantiated, 
given that the aforementioned tax incentives should 
apply to the specified transactions without any temporal 
restriction. In contrast, domestic manufacturers of 

biofuel production equipment, along with enterprises 
engaged in biofuel production, are not beneficiaries  
of any tax incentives. 

Measures aimed at ensuring the development of 
bioenergy are also established in Ukraine's agricultural 
legislation. The Law of Ukraine "On State Support for 
Agriculture in Ukraine" of June 24, 2004 provides for 
financial support for entities operating in the agro-
industrial complex through a mechanism for reducing 
the cost of loans (Article 13). It should be noted 
that this regulatory act includes agricultural products 
(goods) as waste obtained during the production 
of agricultural products (goods) specified in groups 
1-24 of the Ukrainian Classification of Goods for 
Foreign Economic Activity in accordance with  
the Law of Ukraine "On Customs Tariff of Ukraine" 
(2022). According to A.V. Pastukh, classifying 
biofuels and energy obtained from the processing 
and utilisation of agricultural products (goods) and 
their waste as agricultural products is inappropriate,  
given the existence of special legislation. Accordingly, 
legal regulation of support for producers of such  
products should be carried out not by the Law of 
Ukraine "On State Support of Agriculture of Ukraine", 
but by special laws (Pastukh, 2017). It is the contention 
of the present study that, given the direct correlation 
between relations in the field of bioenergy and the 
process of agricultural production, regulation of such 
relations by agricultural legislation is imperative. 
Furthermore, T.V. Kurman asserts that, in contemporary 
conditions, within the ambit of agricultural law, agro-
energy relations are being established, including 
relations involving biomass processing and biofuel 
production. As a complex agrarian-legal category, they 
cover: production relations involving the cultivation of 
energy crops and other types of agricultural activities 
that result in the production of biomass; relations 
involving the processing of biomass into biofuel and its 
sale; biotechnological relations for ensuring waste-free 
agricultural production; scientific and research relations 
in the field of alternative energy; agro-protection 
relations in the field of stimulating biofuel production; 
regulatory relations; agro-ecological relations, and so 
forth (Kurman, 2024). 

In addition, a number of strategic documents  
aimed at addressing problems in the agricultural 
sector refer to the need to take measures to support 
the development of bioenergy. Thus, the Strategy 
for the Development of the Agricultural Sector of 
the Economy for the Period until 2020, approved 
by the Order of the Cabinet of Ministers of Ukraine  
No. 806 of October 17, 2013 (The Resolution of the 
Cabinet of Ministers of Ukraine "On Approval of 
the Strategy for the Development of the Agricultural  
Sector of the Economy for the Period until 2020"), 
provided for priority support for the food and  



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processing industries by stimulating the production 
of new types of products (bioethanol, rapeseed and 
soybean oil), the production of alternative types of 
energy, primarily the production of biofuels from 
crops whose products are not used for food or animal 
feed. The agricultural development strategy establishes 
investments in biogas production based on biomass, 
waste and residues from agricultural production 
and the processing industry (strategic objective 3). 
Unfortunately, such regulatory acts only establish 
strategic objectives and do not provide for a mechanism 
for their implementation. In order to ensure state 
support for the development of this industry and 
measures to achieve this with the identification of 
sources of funding, the authors believe it is necessary 
to adopt a relevant state target programme, especially 
since the Concept of the State Target Scientific and 
Technical Programme for the Development of the 
Production and Use of Biological Fuels was approved 
by a resolution of the Cabinet of Ministers of  
Ukraine on February 12, 2009 (The Resolution of 
the Cabinet of Ministers of Ukraine "On Approval  
of the Concept of the State Target Scientific and 
Technical Programme for the Development of 
Production and Use of Biological Fuels").

Based on the above and the content of agro-energy 
relations, it can be concluded that they directly  
correlate with the basic principles of the circular 
bioeconomy and are one of its directions/components.  
In addition, the agricultural production sector is 
capable of making a significant contribution to 
the implementation of this new economic model. 
Accordingly, relations in the field of the circular 
bioeconomy should also be included in the subject 
of agricultural law. In addition, it is argued that the  
concept of a "circular bioeconomy" should be 
considered as a new category of agrarian law science. 
This is proposed to be understood as an economic 
model aimed at ensuring food security in the country 
through the functioning of a waste-free system 
(including agricultural production), based on the use 
of bioenergy resources, which reduces the negative  
impact on the environment. Taking into account global 
trends in the development of legislation in this area, it 

seems appropriate to enshrine this legal category in 
national agricultural legislation. 

5. Conclusions
Thus, it should be noted that circular bioeconomy 

has not yet been enshrined in legislation in general 
and agricultural legislation in particular. Accordingly, 
further efforts should be focused on ensuring proper 
legal regulation of relations in the field of circular 
bioeconomy, including through agricultural legislation 
that must comply with Ukraine's international and 
European integration obligations, as well as modern 
challenges and realities.

Given that relations in the field of circular  
bioeconomy are closely linked to agricultural  
production processes, ensuring food security in 
the country and the development of rural areas, in  
particular their restoration in the post-war period, they 
should be included in the subject of agricultural law. 

Given the enormous potential of the agricultural 
sector in the field of biological waste utilisation 
in agricultural production and biomass energy  
production, it is reasonable to consider the circular 
bioeconomy as a new category of agricultural law.  
This concept refers to an economic model aimed at 
creating conditions for ensuring food security in the 
country through waste-free (including) agricultural 
production based on the use of mainly bioenergy 
resources, which reduces the negative impact on the 
environment. 

It is imperative to acknowledge the significance  
of the bioenergy component within the context of 
the circular bioeconomy. A thorough examination of 
national legislation pertaining to bioenergy relations 
indicates that the level of state support for these  
relations is deemed to be inadequate. The proposed 
solution to this problem is the adoption of an  
appropriate state target programme.

Appreciation is extended to the Ministry of  
Education and Science of Ukraine for the opportunity to 
disseminate the findings of this scientific research.

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Received on: 25th of May, 2025
Accepted on: 23th of July, 2025

Published on: 13th of August, 2025