The Government has approved a roadmap for the implementation of a national greenhouse gas emissions trading system, - Svitlana Grinchuk
The government has approved a plan to implement a national greenhouse gas emissions trading system (hereinafter referred to as the ETS), which creates the necessary preconditions for the implementation of the state policy on climate change.
"The introduction of the ETS is one of the key tools for achieving climate neutrality, as well as one of the main requirements for Ukraine's accession to the EU. Implementation of the plan will help to achieve the nationally determined contribution under the Paris Agreement, reduce the impact of the EU's transboundary carbon regulation mechanism, and prepare Ukraine for participation in the European ETS," said Svitlana Hrynchuk, Minister of Environmental Protection and Natural Resources of Ukraine.
She said that the ETS is a market-based mechanism for reducing greenhouse gas emissions that has been successfully operating in many countries, including the EU, China, Mexico, and Switzerland. Its essence is to set a general limit on greenhouse gas emissions for companies. Each company receives or buys a certain number of allowances, which it can use for its own needs or sell on the allowance market to be created under this mechanism.
"This approach creates economic incentives for businesses to implement energy efficient and environmentally friendly technologies. As a result, companies will comply with the mandatory requirements for greenhouse gas emissions in the most efficient way," said Svitlana Grinchuk.
The ETS implementation plan approved by the Government includes three main stages:
Preparatory (2025-2027) - development of the legislative framework and creation of the necessary tools for the ETS operation.
The first, "pilot" stage (starting in 2028) is a test launch of the greenhouse gas emissions trading system.
The second, operational, phase will begin no earlier than three years after martial law is lifted, which will allow the ETS to be implemented in the context of a stable economic recovery.
Positive aspects of ETS implementation for Ukraine:
- Environmental benefits: Reducing greenhouse gas emissions will help improve air quality, which will have a positive impact on public health.
- Economic development: The ETS will stimulate enterprises to invest in the latest technologies, which will increase their competitiveness in the international market.
- European integration: compliance with EU standards will bring Ukraine closer to full integration into the European economic area.
- Attracting investments: international investors actively support projects aimed at reducing CO₂ emissions. This will open up new financial opportunities for Ukrainian businesses.
- Energy independence: transition to environmentally friendly technologies and energy efficiency will help reduce dependence on traditional energy resources.