By 2020, Ukraine will develop and implement market greenhouse gas – this means that industrial businesses will pay for emissions into the air


Ukraine will introduce for companies quotas on emissions of greenhouse gases. However, the trading scheme of greenhouse gases in Ukraine will start in three years. Prior to that, the government will introduce the necessary laws and create a system of distribution of quotas.

Ukraine will reduce the amount of emissions

A year ago Ukraine had ratified the Paris agreement to combat global climate change, which came to replace the Kyoto Protocol. Participating countries of the Paris agreement needs to prevent the increase in the average temperature of the planet more than 2 degrees Celsius. And Association agreement with the EU, Ukraine should also enter the trade in greenhouse gases. While Ukraine has set a target to reduce emissions by 40% from 1990 levels.

Compared to 1990, Ukraine’s emissions have decreased from 618 million tonnes to 189 million tonnes in 2016, according to the Statistical Yearbook of world energy. 56% of emissions come from the burning of coal, 28% falls on natural gas, and 16% for petroleum products.

Greenhouse gas emissions in the world. Photo:

“Ukraine is a party to international climate agreements: the Kyoto Protocol and the Paris agreement. For Ukraine, the issue of climate change is very important. This is a chance for us to build the economy on new foundations: energy efficiency, nizkouglerodistoj the economy is a chance to move to a new level of development”, – says Svetlana Grinchuk, Director of the Department of climate change and the preservation of the ozone layer Ministry of environment.

The Paris Protocol poses several major challenges for all countries to reach the goal, she adds. These goals – the end of the era of fossil fuels, development of low-carbon technologies and adaptation of countries to climate change.

Climate policy of Ukraine

A year ago, the Ukrainian government adopted the Concept of implementing the state policy in the sphere of climate change for the period up to 2030. This is the first document at the state level, which aims to limit CO2 emissions.

The Ministry of environment has developed an action plan for implementation of the concept, now he must accept the Cabinet.

In agreement with the EU, the country also needs to introduce a domestic system of trading greenhouse gas emissions. To do this, Ukraine needs to develop a plan for distribution of quotas and implement permits for greenhouse gas emissions. But before earn quota, you need to collect accurate data, how many industrial enterprises emit CO2.

Ukraine trade of greenhouse gas emissions is a good source of investment. For the reduction of emissions of Ukraine will gain the target money, says economist Boris Kushniruk. “Industrial regions is a good opportunity to improve the environmental situation and attract environmental investments. Industrial enterprises need to decide whereby and how they can reduce the amount of emissions,” – said the expert.

First in Ukraine will create a system of monitoring, verification reporting emissions. Then the allocation plan for the six sectors of the economy. The quotas themselves are likely to be paid. After receiving a certain quota, an enterprise can implement measures aimed at reducing emissions of greenhouse gases and to sell the surplus quota to another company, which lacks its.

For starters, the World Bank project currently being implemented pilot projects in six sectors of the economy in order to develop templates for reporting on greenhouse gas emissions.

“The trading system was an effective tool, we need to know the real figures of CO2 emissions,” – says Svetlana Grinchuk.

The goal of this project is to develop a monitoring plan and report emissions of greenhouse gases for the preparation of the participation of enterprises to emissions trading.

Very system of the quotas will force the company to either buy quota or to implement activities that will reduce emissions.

“Our company Zaporozhskaya TPP participates in the pilot project, monitoring and verification of CO2 emissions, in order to know how many emissions we actually have. This will give you the opportunity to get quotes, based on reliable data. On the basis of the TPP draft PMR fulfills a system of monitoring and verification for reporting to a proved scheme formed the basis of legislation. DTEK company, which is the energy sector, and is one of the largest issuers of greenhouse gas emissions, so our participation in the project is very important. And, of course, we are preparing to ensure that Ukraine will be introduced an internal scheme for emissions trading. The end result this will lead to the implementation of measures aimed at reducing the burden on the environment”, – says the head of the Department of environmental safety, DTEK Energo Irina Verbitskaya.

The creation and implementation of the internal system of trading quotas for greenhouse gas emissions stipulated by the Association Agreement between Ukraine and the European Union. The purpose of this system is the reduction of greenhouse gas emissions, and stimulate the modernization of the economy. A prerequisite for the implementation of cap-and-trade on emissions is the creation in Ukraine of a system of monitoring, reporting and verification of greenhouse gas emissions.

In addition to emission control at the enterprises of Ukraine plans to support the sale and production of electric cars. So, in the world about 20% of CO2 emissions give cars with internal combustion engine. At the same time, the number of cars is growing in the world. At the current rate the world will be about 1 billion vehicles by 2030, and more than a billion in 2050.

The Ministry of infrastructure offers to 2021 for the release of imported electric cars from: VAT – 16,8%, Pension Fund – 4.8% and excise tax – 109 Euro. In addition, the government want to make tax credit to the dealers to the income tax and to reimburse part of the cost of the car to the buyer. For domestic manufacturers of electric vehicles – to abolish VAT and introduce a reduced rate of tax on land up to 2028, the Pension Fund will cancel only up to 2021. Also plan to cancel duties on import of components for electric vehicles and install a reprieve from paying VAT for six months.

The survey

TPP quotas, emissions, enterprise

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Vitaly Andronicus



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