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 06/2027
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

Skip to Project data

State of implementation/results

As part of the project, an action plan for the introduction of an ETS in Ukraine was developed. Following comments from the European Commission’s Directorate-General for Climate Action (DG CLIMA), the plan was approved by the Ukrainian government in February 2025. The action plan outlines the necessary steps and timelines for the introduction of an ETS in Ukraine.
Under this roadmap, Ukraine has committed, among other things, to launching the pilot phase as early as 2028. To establish the legal framework, the project is assisting the Ministry of Economy, Environment, and Agriculture of Ukraine (MinEconomy) in drafting the core legislation, taking into account national specificities.
On January 1, 2021, the law establishing a new monitoring, reporting, and verification (MRV) system came into effect. To support MRV processes, the project conducted a series of training sessions for staff at the Ministry of the Environment and the National Center for Greenhouse Gas Emissions Accounting (NCI) who are responsible for MRV-related matters. Plant operators also received training, particularly on the plant registration process and new legal requirements. Due to Russian aggression, mandatory reporting under the MRV Act was suspended between February 2022 and February 2025. The project played a key role in supporting the necessary legal adjustments upon resumption, as well as the corresponding training of subordinate authorities.
The key functional components of the data management system (DMS) for facility-based greenhouse gas emissions have been completed and recently integrated into Ukraine’s e-government infrastructure. Necessary system tests are currently underway. Facility operators have been able to register their facilities online since 2023.

Latest Update:
04/2026