In Ukraine, environmental tax revenues are effectively a conditionally regulated resource that local communities use at their own discretion. Legal restrictions are rather abstract, as an environmental factor can be identified in a wide variety of activities if one so desires. Today, we will examine the approach to environmental protection characteristic of the Mykolaiv region.
EcoPolitics continues to analyze regional environmental programs and investigate how environmental tax funds are spent. An analysis of other regions of Ukraine is available in our series of articles.
The region’s environmental tax in figures
The environmental tax serves as a form of compensation from businesses for their negative impact on the environment. In 2025, businesses in Mykolaiv paid a total of 58.2 million UAH for emissions of pollutants into the air, water, and soil. These figures were reported by the region’s Main Directorate of the State Tax Service.
Environmental tax revenues are distributed among the state, regional, and local budgets. In the case of the Mykolaiv region, UAH 35.9 million remained in the state budget, while UAH 22.3 million was allocated to local budgets.
In the first four months of 2026, the region has already contributed 21.3 million UAH in environmental taxes. Of this amount, local budgets received 6.8 million UAH.
Environmental payments are accumulated in special environmental protection funds (EPF). From there, they can only be used for environmental protection measures. However, this list is defined by Government Resolution No. 1147 of 1996, which allows for a fairly broad interpretation of what constitutes an environmental measure, including activities that overlap with urban improvement or the housing and utilities sector.
Let’s examine whether this provision has been utilized in the Mykolaiv region.
Environmental protection at the regional level
The environmental policy of the Mykolaiv region is guided by a comprehensive program covering the years 2021–2027. More than 904.6 million UAH was planned to be spent on Phase I measures (2021–2023), of which nearly 54 million UAH came from environmental tax revenues.
As in most regions of Ukraine, the most expensive measures involved the sewer system—reconstruction and repairs of pumping stations, replacement of equipment, and so on. For example, 46.2 million UAH was allocated for the reconstruction of the wastewater treatment plant in Pervomaisk, and 20.5 million UAH for the construction of sewer networks in the town of Kryve Ozero.
In total, over 354.1 million UAH was allocated for sewage systems (8.6 million UAH from the NPS Fund), and 263.7 million UAH for waste management (of which 11.8 million UAH came from the ONPS Fund). An additional 7.5 million UAH in environmental tax funds was earmarked for financing an atmospheric air monitoring system. Nearly 17 million UAH from the environmental fund was planned to be spent on developing project documentation for protected areas, as well as the maintenance and protection of landscape parks.
In late November 2023, the Regional State Administration approved a list of measures for implementing the second phase of the program. However, the list contains neither specific measures nor specific amounts. Although in previous years the ONPS Fund was cited as a funding source for nearly every component of the environmental program, here it is mentioned only in the context of maintaining the region’s landscape parks.
At the very least, in 2024, funds from the special environmental fund were indeed allocated only to measures that in one way or another relate to the territories and objects of the Nature Reserve Fund (NRF).
According to an explanatory note from the Department of Ecology and Natural Resources of the Mykolaiv Regional State Administration, 4.65 million UAH was allocated from special-purpose funds, and 4.53 million UAH was utilized. There were only three measures:
- Maintenance and logistical support for the operations of regional landscape parks—“Kinburn Spit,” “Tiligul,” “Pryingul,” and “Granite-Steppe Pobuzhzhya.” UAH 3.07 million was allocated.
- Development of land management documentation for protected natural areas (PNA) — 1.36 million UAH spent.
- Development of projects to create PNA sites and territories — 99,500 UAH spent.
Regional center environmental program
Mykolaiv has a City Targeted Environmental Program for 2023–2027, which was adopted in October 2023. In the document posted on the website of the City Department of Housing and Communal Services, the NPS Fund is not mentioned as a source of funding for environmental measures. The total budget for the five-year eco-program is nearly 76.2 million UAH. Let’s examine its key areas and financial plans.
The largest allocation of funding—over 37.5 million UAH—is earmarked for the protection of natural plant resources. The most expensive initiative in the eco-program is also in this category. Surprisingly, it is the fight against the spread of ragweed, for which nearly 24.4 million UAH is planned. Another 13.2 million UAH is allocated for the purchase of tree, shrub, and flower seedlings.
The city has allocated over 26.1 million UAH for the protection of water resources. The methods of this “protection” involve wastewater management. In particular, the most expensive measure is the construction of treatment facilities at the outlets of storm sewers into the Southern Bug and Ingul rivers. The estimated funding amounts to over 23.9 million UAH.
UAH 15.3 million is planned for the development of documentation, as well as scientific and informational work. Of this amount, UAH 4.8 million is to be spent on the development and approval of land-use planning projects for parks and public squares. Over UAH 5.8 million is allocated for unspecified “other” environmental project developments.
The smallest amount—2.7 million hryvnias—is allocated for the preservation of the nature reserve fund.
