Today, September 23, the Cabinet of Ministers of Ukraine adopted three regulations that should ensure transparent and accurate accounting of greenhouse gas emissions by industrial enterprises in Ukraine.

The introduced system is the first step towards launching a greenhouse gas emissions trading system - an economic tool to stimulate emission reductions.

"With the establishment of the process, the state will gain a clear understanding of the real amount of emissions, and therefore will be able to effectively plan policies, meet commitments and encourage companies to implement new technologies," said Minister of Environment and Natural Resources Roman Abramovsky.

According to the decisions made, from 2021, large and medium-sized industrial enterprises of Ukraine determined by the Government will be obliged to prepare plans for monitoring greenhouse gas emissions and approve them in the Ministry of Environment and Natural Resources. On yearly basis, companies will prepare reports on greenhouse gas emissions, which will be verified by independent experts in accordance with established procedures and then submitted to the Ministry of Environment and Natural Resources for approval.

Relevant decisions have been made to implement the Law of Ukraine "On Principles of Monitoring, Reporting and Verification of Greenhouse Gas Emissions" and are provided for in the obligations under the Association Agreement with the EU.

It should be noted that since 2019, Ukraine has a tax on greenhouse gas emissions at the level of UAH 10 per ton of emissions, but companies calculate emissions according to different methods, and the submitted reports are not verified. That is, the data that the state collects is not representative, and the budget may receive less tax.

Ukraine joined the Paris Agreement on Climate Change in 2016, which aims to keep global warming up to 2C warming from pre-industrial levels. Currently, the average temperature on the planet has risen by 1.2C.