ETS Framework to Transform Environmental Regulation in Ukraine

The implementation of the greenhouse gas emissions trading system (ETS) in Ukraine is one of the European integration obligations of the Association Agreement. It aims to comply with Ukraine’s obligations under the Paris Agreement and Ukraine Facility Plan. The Climate Law of Ukraine (more details here) defines the ETS in the list of market mechanisms and instruments for implementing state climate policy. The ETS will regulate greenhouse gas emissions by activity type, setting emission limits based on greenhouse gas emission data and applying the most effective approaches to reduce such emissions.