Ukraine's govt approves roadmap for ETS implementation – Minister of Environment
Ukraine's Cabinet of Ministers has approved a plan to implement a national emissions trading system (ETS), laying the foundation for state climate policy, Minister of Environmental Protection and Natural Resources Svitlana Hrynchuk announced.
"The implementation of ETS is a key tool for achieving climate neutrality and one of the main requirements for Ukraine's accession to the EU. The execution of this plan will contribute to achieving our Nationally Determined Contributions under the Paris Agreement, mitigating the impact of the EU's Carbon Border Adjustment Mechanism, and preparing Ukraine for participation in the European ETS," Hrynchuk wrote on Facebook on Friday.
According to the announcement, the government's ETS roadmap consists of three main phases. The first is the preparatory stage (2025-2027), which involves developing the legislative framework and establishing necessary instruments for ETS operation. The second, or pilot phase (starting in 2028), will see a test launch of the emissions trading system. The third, operational phase is set to begin no earlier than three years after martial law is lifted, ensuring its implementation in a stable economic environment.
ETS is a market-based mechanism for reducing greenhouse gas emissions, successfully operating in various countries, including the EU, China, Mexico, and Switzerland. It works by setting an overall cap on emissions for enterprises. Companies receive or purchase allowances, which they can use for their own operations or trade within the quota market established under this system.