Germany’s experience: A Guideline for developing Ukraine’s emissions trading system

The development of a system for monitoring, reporting, and verification (MRV) of greenhouse gases, as well as the creation of a full-fledged emissions trading system (ETS), became key topics of discussion between Ukraine and Germany.  

These issues were central during a working meeting of the Ukrainian delegation in Berlin, led by Deputy Minister of Economy, Environment, and Agriculture of Ukraine Oleksandr Krasnolutskyi, with representatives of the German Emissions Trading Authority (DEHSt) within the Federal Environment Agency of Germany.  

The parties focused on practical areas of cooperation, particularly the exchange of experience, training, and capacity building for Ukrainian specialists in climate policy and ETS administration.  

“For Ukraine, this is not symbolic interaction but a practical foundation for building a national emissions trading system. We are interested in establishing sustainable technical cooperation with DEHSt — from creating the institutional model of the future ETS authority to implementing effective procedures for administration and control,” noted Oleksandr Krasnolutskyi.  

DEHSt is Germany’s national competent authority in the field of emissions trading and ensures the full cycle of system functioning — from administering the EU Emissions Trading System to managing the national ETS. Germany’s institutional model, where policy is shaped at the ministerial level and technical administration is carried out by an agency, is considered a reference point for Ukraine.  

Ukraine has already implemented the MRV system and is currently working on its improvement in line with EU legislation. The next step is integrating this system into a full-fledged emissions trading architecture — with clear reporting rules, compliance enforcement, and a functioning market.