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 Environmental Protection and Natural Resources - Ukraine
Implementing Partner: Ministry of Environmental Protection and Natural Resources - Ukraine
Online: https://www.giz.de/en/worldwide/65310.html

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State of implementation/results

Through the EU Association Agreement and EU candidate status, Ukraine is obliged to introduce an EU Emissions Trading System (ETS). The ambition to rapidly implement EU directives, including the ETS, is increasing. At the national level, the project supports the development of administrative structures and capacities. To this end, it assists its partners in establishing a basis for setting the emissions cap (emissions scenarios). It enables the competent authority to carry out the verification of emission reports from ETS-covered installations. 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 allows plant operators, verifiers, authorities, and environmental inspectors to apply their knowledge. Capacities for monitoring plans and emissions reporting are being built up in the private sector. The ETS creates a “level playing field” with the EU internal market.
On January 1, 2021, the law introducing a new monitoring, reporting, and verification system (MRV) came into force. To support MRV processes, the project conducted a series of training events for employees of the Ministry of Environmental Protection and Natural Resources of Ukraine (MEPR) and the National Center for Accounting of Greenhouse Gas Emissions (Budgetary Institution - BI), which are responsible for MRV issues. The trainings focused on operationalizing the Ukrainian system, especially the specifics of installation registration and the application of monitoring plans. Additionally, the project organized training for operators of installations covered by the MRV legislation. Project experts provided detailed explanations of the installation registration process and new legal requirements regarding reporting.
In December 2021, the Ministry of Environmental Protection and Natural Resources (MEPR), with project support, launched another series of events aimed at involving stakeholders in discussions about the introduction of an ETS in Ukraine. The last event in this series took place as an online high-level event on February 22, 2023. Immediately after the final event, the main findings from the stakeholder engagement process were analyzed, and a report with recommendations for continuing the dialogue on ETS introduction was submitted to the MEPR.
The project supports the MEPR in developing relevant secondary legislation and in the institutional establishment of a competent authority. It also assists the MEPR in revising Ukrainian MRV legislation, which has become necessary due to the impacts of the Russian military aggression against Ukraine. Within the project framework, an action plan for ETS introduction in Ukraine was developed, clearly defining the necessary steps and timelines. After review by the European Commission’s Directorate-General for Climate Action (DG CLIMA), this plan is currently awaiting approval by the Ukrainian government.
The main functional components of the data management system (DMS) for installation-based greenhouse gas emissions have been completed. The system is now planned to be transferred to a different IT platform. Since October 2023, the first components have already been integrated into the new platform, enabling installation operators to register their installations online.

Latest Update:
06/2025