Ministry of Economy, Environment and Agriculture publishes draft law on national greenhouse gas emissions trading system
The Ministry of Economy, Environment and Agriculture of Ukraine has released for public discussion a draft Law of Ukraine “On the Principles of Operation of the National Greenhouse Gas Emission Trading System.” The document establishes the legal and organizational framework for the system’s operation and lays the groundwork for gradual alignment with EU climate legislation.
Benefits of Introducing the National Emissions Trading System (NETS)
The introduction of a market-based mechanism for reducing greenhouse gas emissions shall ensure:
- fulfillment of European integration obligations under Cluster 4, Chapter 27 “Environment and Climate Change” and alignment with EU legislation;
- the possibility of deferring the burden under the EU ETS;
- protection of exporters from the EU CBAM burden—redirecting voluntary carbon adjustment payments on exports to decarbonization projects of their payers in Ukraine;
- the possibility of offsetting quota repayment obligations—up to 90%;
- creation of domestic funding sources for the modernization of Ukrainian industry and support for the N2T goals through the Ukraine Modernization Fund.
Funds from the NETS can be used to support investments in decarbonization, energy efficiency, and new technologies.
The bill does not impose a sudden burden on businesses. On the contrary, it provides for a gradual transition through several phases of the system’s operation. Operators of ETS installations will be exempt from double taxation (ETS and CO₂ emissions tax) within the scope of their installations.
Read more on the Ministry of Economy, Environment and Agricilture website.