Ukraine

Overview

The PMI is working with the Ministry of Energy and Environment in Ukraine to support its development of a national emissions trading system (ETS). Ukraine plans to establish a national ETS in line with the Ukraine-EU Association Agreement, which entered into force in September 2017. Since 2021, Ukraine has been operating a national Monitoring, Reporting and Verification System. In addition, it has a carbon tax, which was introduced in the Ukraine Tax Code on CO2 emissions from stationary sources. More information on carbon pricing developments in Ukraine can be found on the Carbon Pricing Dashboard.

New Program Objectives:

Development of ETS design elements.
Technical Support for ETS Legal Framework.
Communication, stakeholder engagement, capacity building

Country Market Based Approach

Emissions Trading

This includes three components. The first is development of major design elements of a national ETS, including issues such as the scope, an ETS registry, cap setting options and allocation rules, among others. Given Ukraine is a current EU candidate country, these design options will also be influenced by the design of the European Union’s ETS. The second component focuses on support to operationalize the ETS. This includes a legal gap analysis and recommendations on the regulatory and institutional set up for Ukraine’s ETS. Finally, stakeholder consultations will also be undertaken as part of the preparatory work. Further work on Ukraine is contingent on completion of this first phase of work and an enabling environment in the country.

Capacity building

PMI Country Programs

Overview

Country Market Based Approach

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