The Government is preparing a national emissions trading system for greenhouse gases
Kyiv • UNN
The Ministry of Economy has presented a draft law on the national emissions trading system. The mechanism will allow for the financing of industrial modernization.
The Ministry of Economy has released for public discussion a draft law "On the Principles of Functioning of the National Greenhouse Gas Emissions Trading System." This was reported by the ministry's press service, according to UNN.
Details
The introduction of a market mechanism for reducing greenhouse gas emissions will ensure:
- fulfillment of European integration obligations within Cluster 4, Chapter
27 "Environment and Climate Change" and approximation to
EU legislation;
- the possibility of deferring the burden within the EU ETS;
- protection of exporters from the EU CBAM burden — directing
voluntary carbon adjustment payments during export to
decarbonization projects of their payers in Ukraine;
- the possibility of replacing quota surrender obligations — up to 90%;
- creation of internal sources of financing for the modernization of Ukrainian
industry and support for NDC2 goals through the Modernization Fund of Ukraine.
Funds from the NETS can be used to support investments in decarbonization, energy efficiency, and new technologies.
The draft law does not envision a sharp burden on business. On the contrary, it provides for a gradual transition through several phases of the system's operation. NETS installation operators will be exempt from double taxation (NETS and CO₂ emission tax) within the scope of the installations.