Mechanism for international trade in greenhouse gas emission reductions: Government establishes legal and institutional framework

Ukraine is launching a mechanism for international trade in greenhouse gas emission reductions in accordance with Article 6 of the Paris Agreement. This decision was adopted by the Cabinet of Ministers of Ukraine at its meeting on 10 June 2026.

The resolution also defines the procedure for the functioning and maintenance of the National Carbon Registry, which will become an important tool for accounting and implementing international carbon transactions.

The implementation of the mechanisms provided for in Article 6 of the Paris Agreement is expected to attract additional investment for the introduction of low-carbon technologies, industrial modernisation, and the implementation of green recovery projects.

“We are creating the necessary legal and institutional framework for Ukraine’s participation in international carbon markets. This opens up new opportunities for attracting climate finance, implementing investment projects, and modernising the economy using the best international climate practices,” noted Oleksandr Krasnolutskyi, Deputy Minister of Economy, Environment and Agriculture of Ukraine.

The document establishes the legal basis for the implementation of Ukraine’s existing international climate cooperation agreements, in particular with Switzerland and Japan, as well as for the development of new partnerships in the future.

In the long term, this will give enterprises and communities access to international climate finance and support for projects in the areas of energy infrastructure modernisation, renewable energy development, heating, clean transport, waste management, and others. At the same time, it will promote greater transparency in climate policy, the spread of low-carbon technologies, and Ukraine’s integration into international carbon markets – an important step in implementing the Paris Agreement.

Background

The Paris Agreement is an international climate treaty adopted in 2015 under the UN Framework Convention on Climate Change. Ukraine ratified the Paris Agreement in 2016 and committed to reducing greenhouse gas emissions, increasing resilience to the impacts of climate change, and implementing low-carbon development measures.

Article 6 of the Paris Agreement provides for mechanisms of international cooperation in reducing greenhouse gas emissions, including the possibility of implementing joint decarbonisation projects and international trade in emission reductions. This allows for the attraction of additional investment for climate and low-carbon projects and the achievement of climate goals in a more economically efficient way.

The preparation of the resolution was the result of prolonged joint work by the Ministry of Economy, Environment and Agriculture of Ukraine, the Ukrainian Climate Office, and the UN Development Programme (UNDP) in Ukraine. Experts from the National Centre for GHG Emission Inventory, the Recovery and Reform Support Team at the Ministry of Economy, Environment and Agriculture, and the Green Transition Office also contributed to the development of the document.