Environmental protection reforms and EU integration: What should businesses expect?

Ukraine’s Minister of Environmental Protection and Natural Resources, Svitlana Grynchuk, discussed pressing issues with representatives of the Ukrainian Chamber of Commerce and Industry.

Key topics covered during the meeting included:

• Progress in preparing for screening sessions with the European Commission.

“We have successfully conducted two rounds of simulation screening sessions with external experts. European partners have noted Ukraine’s high level of preparation for Chapter 27, ‘Environment and Climate Change.’ Within this chapter, 74 presentations have been developed, 54 of which were prepared by the Ministry of Environmental Protection and Natural Resources. We have provided answers to over 400 questions in the European Commission’s questionnaire. Our approach to reforms focuses on realistic alignment: not merely copying directives but adapting them to Ukraine’s realities with fixed transition periods,” said Svitlana Grynchuk.

• Application of the Carbon Border Adjustment Mechanism (CBAM) to Ukrainian businesses.

“Together with the Office of the Deputy Prime Minister for European and Euro-Atlantic Integration, the Ministry of Economy, and the Ministry of Energy, we are addressing this issue and closely monitoring updates to EU legislation. This spring, as part of a simplification package, the European Commission amended the CBAM Regulation, with eight more legislative acts planned for adoption by year-end. Ukraine maintains an ongoing working dialogue with European officials and is developing solutions suitable for our economy. At least three Directorates-General of the European Commission are engaged in discussions with Ukrainian Government representatives. Further progress depends on inter-agency coordination in Ukraine and constructive engagement with businesses,” the Minister noted.

Svitlana Grynchuk highlighted that, alongside addressing CBAM, the Ministry is working on implementing an Emissions Trading System (ETS) in Ukraine. A key next step is the adoption of the ETS Law, which is currently in development.

A significant milestone for launching the ETS has already been achieved: the reinstatement of mandatory monitoring, reporting, and verification of greenhouse gas emissions. Businesses must submit their 2024 emissions report by the end of 2025 and their 2025 report by 31 March 2026.

• Introduction of an integrated environmental permit.

“We are introducing a ‘single window’ principle – replacing separate permits for water, air, and waste with a single integrated environmental permit. Six key regulations have already been adopted, with five more in the final stages. The digital platform for issuing integrated environmental permits is undergoing public testing and will be fully operational from 8 August 2025. We urge businesses to actively participate in testing to identify and resolve any issues early,” emphasised Svitlana Grynchuk.

• Reform of the environmental oversight and control system.

According to the Minister, the Government is expected to approve the Strategy for Reforming the State Environmental Control System soon. Once approved, specific pilot projects, which are ready to launch, can begin. The reform aims to separate the functions of control, monitoring, and service provision, while introducing a risk-based approach to inspections.

“We aim to transform oversight from a punitive function into a preventive and service-oriented tool. Businesses will have access to information on requirements in advance and the ability to conduct self-assessments electronically. This reflects a philosophy of trust and predictability,” said Svitlana Grynchuk.

• Reform of the waste management system, including the newly introduced permitting system.

The Minister noted that, considering the state of war, the Government has given businesses time to adapt to the new waste management reform requirements, allowing permits to be obtained under a declarative principle. Following requests from businesses, the Government extended the validity of these declarations three times. In total, businesses had 1.5 years to obtain permits for facilities with a capacity of 100 tonnes per day or more, and nearly one year for facilities with a capacity below 100 tonnes per day. The discussion also covered the status of the draft law on mining waste, metal waste accounting, and related issues.

“I am grateful to businesses for the constructive dialogue. It is encouraging to see that Ukrainian enterprises recognise the importance of environmental policy and the shift towards global trends. The green transition, sustainable solutions, and the adoption of the best available technologies are not obstacles to economic activity but a necessity of our time and new opportunities for development,” emphasised Svitlana Grynchuk.