The Government has endorsed a roadmap for the implementation of the national greenhouse gas emissions trading system (hereinafter referred to as the ETS), which creates the necessary preconditions for the realisation of the state policy in the field of climate change.

"The introduction of the ETS is one of the key tools for achieving climate neutrality, as well as one of the main requirements for Ukraine's accession to the EU. Implementation of the plan will help achieve the nationally determined contribution under the Paris Agreement, mitigate the effects of the EU's cross-border carbon regulation mechanism, and prepare Ukraine for participation in the European ETS," said Svitlana Grynchuk, Minister of Environmental Protection and Natural Resources of Ukraine.

She told, the ETS is a market-based mechanism for reducing greenhouse gas emissions that has been successfully implemented in many countries, including the EU, China, Mexico, Switzerland, and the United States. Its essence is to set an overall limit on greenhouse gas emissions for companies. Each company receives or buys a certain number of allowances, which it can use for its own needs or sell on the quota market to be created under this mechanism.

"This approach creates economic incentives for businesses to implement energy efficient and environmentally friendly technologies. As a result, companies will comply with the mandatory requirements for greenhouse gas emissions in the most efficient way," noted Svitlana Grynchuk.

The ETS implementation plan approved by the Government includes three main stages:

Preparatory (2025-2027) - drafting the legislative framework and creating the necessary tools for the ETS to operate.

The first, ‘pilot’ phase (starting in 2028) is a test launch of the greenhouse gas emissions trading system.

The second, operational, phase will start no earlier than three years after the lifting of martial law, which will allow the ETS to be implemented in the context of a stable economic recovery.

Positive aspects of ETS introduction for Ukraine:

- Environmental benefits: Reduced greenhouse gas emissions will contribute to improved air quality, which will have a positive impact on public health.

- Economic development: The ETS will stimulate enterprises to invest in the latest technologies, thus increasing their competitiveness on the international market.

- European integration: compliance with EU standards will bring Ukraine closer to full integration into the European economic area.

- Attracting investment: international investors actively support projects aimed at reducing CO₂ emissions. This will open up new financial opportunities for Ukrainian businesses.

- Energy independence: the transition to environmentally friendly technologies and energy efficiency will help reduce dependence on traditional energy resources.