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

Skip to Project data

State of implementation/results

The EU Association Agreement and EU candidate status oblige Ukraine to introduce an EU Emissions Trading System (ETS). 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 emission reports of installations subject to ETS. The project promotes the development of procedures for emission certificates. 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 environmental inspectors 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.
On January 1, 2021, the law introducing a new monitoring, reporting and verification (MRV) system 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 were dedicated to the operationalization of the Ukrainian system, especially the specifics of registration of facilities 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 in detail.
In December 2021, the MEPR launched another series of events with the support of the project. The aim of these events was to involve stakeholders in the discussion about the introduction of an ETS in Ukraine. On February 22, 2023, the last event in this series took place as an online high-level event. Immediately after the final event, the main findings from the stakeholder engagement process were analyzed and a report with recommendations for the continuation of the dialogue with stakeholders on the introduction of the ETS was submitted to the MEPR.
The project supports the MEPR in the development of relevant secondary legislation and the institutional set-up of a competent authority. The project also supports the MEPR in the revision of Ukrainian legislation in the field of MRV (measurement, reporting, verification), which has become necessary due to the impact of Russian military aggression against Ukraine. Currently, the project is developing a strategy for the implementation of an ETS in Ukraine, which includes an operational plan that clearly defines the necessary steps and timelines for getting there.
The main functional components of the data management system (DMS) for installation-based greenhouse gas emissions have been finalized. 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 on this platform.

Latest Update:
03/2025