Supporting the implementation of an emissions trading scheme in Ukraine
As of: January 2021
Ukraine has signed the EU Association Agreement, committing itself to the introduction of the EU Emission Trading Scheme (ETS). The project supports the Ukrainian Ministry of Environment in creating the necessary conditions to help the country achieve this commitment, while at national level, it supports the development of the necessary administrative structures and technical capacities. The partners are also supported in creating a technical foundation in the form of various emission scenarios for the determination of the emission cap. The project also promotes the development of rules and procedures for the allocation and administration of emission certificates. Technical capacity is being strengthened at the private sector level to develop monitoring plans and emission reports. The ETS is an important stimulus for the implementation of mitigation measures through the use of energy-efficient technologies.
State of implementation/results
- In December 2019, the Parliament of Ukraine passed the MRV law, which represents a milestone in the establishment of an emissions trading system. The project supported the Ukrainian Ministry of Environment together with the Partnership for Market Readiness of the World Bank in the preparation of the draft law. The project continues to support the implementation of the law and thus the creation of a solid data basis for emissions trading. Among other things, the law requires the establishment of a competent authority to administer the MRV system, and later emissions trading. The project provides advice on organisational development and the qualification of future employees.
- In addition, the project is doing pioneering work in the development of a data management system that simplifies workflows between plant operators, authorities and inspection authorities thanks to online communication. By the end of 2021, the technical activities for setting up the data management system (DMS) for analog-based GHG emissions will be completed. Module 1 for the registration of plant operators will be completed by the end of September 2020. Module 2 for the preparation of emission reports is well advanced and will be completed by the end of 2020, so that plant operators will be able to transmit their data electronically when the first MRV cycle starts on January 1, 2021.
- In July 2020, activities for the institutional establishment of a national competent authority and capacity development for the enforcement of monitoring, reporting and verification of GHG emissions under the ETS were initiated.