The Ministry of Ecology outlines steps to launch an emissions trading system in 2026 shutterstock

The Ministry of Ecology outlines steps to launch an emissions trading system in 2026

Katerina Belousova

In 2025, STV should be launched in Ukraine in pilot mode, and in 2026 – in full-fledged mode

Deputy Minister of Environmental Protection and Natural Resources Victoria Kireeva said that the ministry plans to submit a draft law "On the Emissions Trading System" to the Verkhovna Rada in 2024 to be adopted by the end of the year.

This is necessary for the launch of the national ETS in 2026, and the ministry is finalizing a detailed action plan for its creation, the Ministry of Environment reports on Facebook.

Kireeva explained that the launch of the ETS will allow Ukrainian companies to avoid the burden of paying duties from the European Carbon Based Import Adjustment Mechanism (CBAM). It will also help fulfill Ukraine's obligations to implement Directive 2003/87/EC.

"It is important for us to exempt Ukrainian business from paying the CO2 emissions tax (CBAM) in 2026 when exporting products to the EU. Therefore, even despite the war in Ukraine, we must implement our own, national greenhouse gas emission trading system (GHG)," she said.

As you know, the first stage of implementation of CBAM started on October 1, 2023. Until the end of 2025, exporting companies only have to report emissions from the production of their goods. Payment of the duty will start from 2026, when companies will receive CBAM certificates and pay the difference between the local and European price for carbon emissions.

Central Bank of Ukraine covers the import of:

  • cement;
  • iron;
  • steel;
  • aluminum;
  • fertilizers;
  • electricity;
  • hydrogen

The deputy minister emphasized that in 2025, STV should be launched in Ukraine in pilot mode, and in 2026 – in full-fledged mode. She announced the presentation of the stages, time frames and necessary infrastructure of STV in the near future.

She added that in 2023 the Ministry of Environment implemented a number of tasks in the field of climate policy for 2023, in particular:

  • in January 2023, the system of monitoring, reporting and verification of greenhouse gas emissions was updated, which brought it closer to EU acts. It is a prerequisite for the creation of STV;
  • the climate policy vision was presented at the COP28 climate conference and in the "capital" of the EU, Brussels;
  • the Strategy for the formation and implementation of state policy in the field of climate change until 2035 was developed, which is currently being completed;
  • the Climate Office was opened together with German colleagues;
  • a plan was approved, according to which Ukraine will move towards reducing methane emissions within the framework of the "Global Methane Pledge" initiative.

Earlier, EcoPolitic wrote, that the Ministry of Environmental Protection and Natural Resources has developed drafts of new standards for monitoring, quantification and reporting of greenhouse gas emissions, which will help launch the ETS (emissions trading system).

Earlier, EcoPolitics talked to Olha Boyko, coordinator of the EBA's Committee on Industrial Ecology and Sustainable Development, about whether Ukraine is ready to launch an ETS.

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