Supporting the implementation of an emissions trading scheme in Ukraine

Through the EU Association Agreement and EU candidate status, Ukraine is obliged to introduce an EU Emissions Trading Scheme (ETS). The ambition to rapidly implement EU directives including the ETS is increasing. At the national level, the project promotes the development of administrative structures and capacities. It supports partners in establishing a basis for setting the emissions cap (emissions scenarios). The competent authority will be enabled to carry out the verification of emission reports of installations subject to ETS. The project promotes the development of procedures for emission allowances. The IT system will be further developed and integrated into the e-governance structures of Ukraine. An ETS pilot phase enables plant operators, verifiers, authorities and environmental inspectorates to apply their knowledge. Capacity is built in the private sector for monitoring plans and emissions reporting. The ETS creates a "level playing field" with the EU internal market.

Project data

Countries: Ukraine
IKI funding: 6,000,000.00 €
Duration: 09/2017 till 06/2026
Status: open
Implementing organisation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner: Ministry of Economy, Environment and Agriculture of Ukraine
Online: https://www.giz.de/en/worldwide/65310.html

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State of implementation/results

The most important functional components of the data management system (DMS) for plant-based greenhouse gas emissions have been completed. It is now planned to transfer the system to another IT platform. As of October 2023, the first components of the system have already been integrated into the new platform. Installation operators can now register their installations online on this platform.-- The project supports the MEPR in developing the relevant secondary legislation and in setting up a competent authority. The project also supports the MEPR in the revision of Ukrainian legislation in the field of MRV, which has become necessary due to the impact of Russian military aggression against Ukraine. As part of the project, an action plan for the introduction of an ETS in Ukraine has been developed, which clearly defines the necessary steps and timelines for getting there. Following comments from the European Commission's Directorate-General for Climate Action (DG CLIMA), this plan is currently being submitted to the Ukrainian government for approval
On January 1, 2021, the law on the introduction of a new monitoring, reporting and verification (MRV) system came into force. To support MRV processes, the project conducted a series of training events for MEPR and National Center for Greenhouse Gas Emissions Accounting (NCI) staff responsible for MRV issues. The trainings were dedicated to the operationalization of the Ukrainian system, especially the specifics of the registration of installations and the application of monitoring plans. The project also organized training for operators of facilities covered by MRV legislation. Project experts explained the registration process for installations and new legal requirements regarding reporting provisions in detail
Ukraine is obliged to introduce an EU emissions trading system (ETS) as a result of the EU Association Agreement and EU candidate status. The ambition to rapidly implement EU directives, including the ETS, is increasing. At national level, the project promotes the development of administrative structures and capacities. To this end, it supports its partners in creating a basis for determining the emissions cap (emissions scenarios). It enables the competent authority to carry out the verification of emissions reports from installations subject to the ETS. The project promotes the development of procedures for emission allowances. The IT system is being further developed and integrated into Ukraine's e-government structures. An ETS pilot phase enables plant operators, verifiers, authorities and the environmental inspectorate to apply their knowledge. Capacities for monitoring plans and emissions reports are being built up in the private sector. The ETS creates a level playing field with the EU internal market.

Latest Update:
12/2025