Ukraine is the EU’s strategic partner, and the European vector of state policy is one of the priorities of Ukraine. It includes achieving the goal of climate neutrality and introducing modern mechanisms of decreasing and absorbing CO2 emissions in all sectors. To better understand the functioning of carbon markets, their regulatory instruments, and possibilities of their introduction in Ukraine, BRDO analysts developed the Green paper “Achieving climate neutrality: analysis of current carbon market and their regulatory instruments” with the support of the EU.
“CO2 emissions increase annually on a global scale, and governments around the world are looking constantly for new methods of managing and decreasing negative impacts of carbon emissions. We see Ukrainian efforts in analysing the state policy in achieving climate neutrality and support Ukrainian Government on this path,” said Chloe Allio, Head of Section “Economic Cooperation, Energy, Infrastructure and Environment” of the Delegation of the European Union to Ukraine.
Until the mid-20th century, the USA and Europe were the leaders in CO2 emissions, however the second half of the century was marked with the increase of the emissions in Asia. Today the USA and Europe share a little less than one third of all emissions. Ukraine as one of the parties of the Paris Agreement has admitted that adaptation to climate change is a global challenge that needs to be faced on a local, national, regional, and international levels. Respectively, to decrease its carbon trace, Ukraine committed to reducing greenhouse gas emissions by 65% in 2030 compared to 1990 in the framework of the Paris Agreement.
“In order to achieve climate neutrality, it is necessary to transform public policy and align existing laws with climate initiatives. The EU is working on revising its climate, energy, and transport legislation. Ukraine is not far behind – as a part of the European integration process, we analyse international experience and available tools. In particular, BRDO’s new study on carbon markets in the Ukrainian context is one of the first in this field. Our further analytical work will consist of studying the potential of Ukraine on the way to achieving the goal of carbon neutrality in such sectors as energy, transport, agricultural production, construction, forestry, etc.,” said Oleksii Dorogan, CEO of BRDO.
The Green paper, developed by BRDO, provides analysis of the carbon trading systems, carbon taxes, regulation of import/export, and measures to stimulate the development of a low-carbon economy.The Green paper is available at regulation.gov.ua (in Ukrainian).