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The EBA and the EU Delegation to Ukraine Discussed the ETS Reform

11/ 08/ 2026
  On 10 August, representatives of the EBA Committee on Industrial Ecology and Sustainable Development met with the Delegation of the European Union to Ukraine to discuss the reform of Ukraine’s National Emissions Trading System (ETS) and approaches to its further implementation.   Business representatives presented their position on the three legislative initiatives registered in the Verkhovna Rada of Ukraine. They also discussed the draft law developed by the Ministry of Economy and Environment of Ukraine.   The business community emphasized its support for the phased introduction of the Ukrainian ETS in line with Ukraine’s EU integration commitments and identified the approach proposed by the Ministry as the most balanced. In the view of EBA member companies, the system should provide for a gradual transition for Ukrainian industry, predictable carbon price-setting rules, sufficient transition periods, and the possibility of directing ETS revenues towards the decarbonisation and modernisation of industrial facilities.   Particular attention was given to the model for managing ETS revenues. Business representatives stressed the importance of establishing a separate fund and a transparent mechanism for the use of its resources. In their view, ETS revenues should primarily be reinvested in the economy by financing decarbonisation and modernisation projects implemented by the companies generating them.   It was also highlighted that there is a need to align the Ukrainian ETS model with the EU ETS framework and the European Commission’s recommendations, particularly regarding the phased implementation of the system, maintaining the competitiveness of Ukrainian industry, and avoiding double financial burdens in connection with CBAM.   The EU Delegation to Ukraine expressed its openness to further discuss the business community’s position on the need to establish a separate fund to finance decarbonisation projects. It also considered the approach that ETS revenues should primarily be directed towards supporting companies and investment projects that deliver emission reductions as generally in line with the ETS goals and principles in the EU.   During the discussion, the participants also stressed the importance of institutional capacity for the effective launch of the ETS. This includes ensuring sufficient numbers of qualified staff within the responsible public authorities, as well as providing them with adequate preparation and training. Without sufficient institutional capacity and the necessary expertise, effective administration of such a complex emissions trading system will be challenging.   Following the meeting, the participants agreed to continue discussions on the ETS reform and practical aspects of its implementation. The next discussion is scheduled to take place on the platform of the Ukrainian Climate Office, with the participation of relevant stakeholders.   We thank the EU Delegation to Ukraine for the open dialogue, its support for the business community’s position, and its willingness to work together towards an effective, transparent and predictable ETS framework for Ukraine.
On 10 August, representatives of the EBA Committee on Industrial Ecology and Sustainable Development met with the Delegation of the European Union to Ukraine to discuss the reform of Ukraine’s National Emissions Trading System (ETS) and approaches to its further implementation.
Business representatives presented their position on the three legislative initiatives registered in the Verkhovna Rada of Ukraine. They also discussed the draft law developed by the Ministry of Economy and Environment of Ukraine.
The business community emphasized its support for the phased introduction of the Ukrainian ETS in line with Ukraine’s EU integration commitments and identified the approach proposed by the Ministry as the most balanced. In the view of EBA member companies, the system should provide for a gradual transition for Ukrainian industry, predictable carbon price-setting rules, sufficient transition periods, and the possibility of directing ETS revenues towards the decarbonisation and modernisation of industrial facilities.
Particular attention was given to the model for managing ETS revenues. Business representatives stressed the importance of establishing a separate fund and a transparent mechanism for the use of its resources. In their view, ETS revenues should primarily be reinvested in the economy by financing decarbonisation and modernisation projects implemented by the companies generating them.
It was also highlighted that there is a need to align the Ukrainian ETS model with the EU ETS framework and the European Commission’s recommendations, particularly regarding the phased implementation of the system, maintaining the competitiveness of Ukrainian industry, and avoiding double financial burdens in connection with CBAM.
The EU Delegation to Ukraine expressed its openness to further discuss the business community’s position on the need to establish a separate fund to finance decarbonisation projects. It also considered the approach that ETS revenues should primarily be directed towards supporting companies and investment projects that deliver emission reductions as generally in line with the ETS goals and principles in the EU.
During the discussion, the participants also stressed the importance of institutional capacity for the effective launch of the ETS. This includes ensuring sufficient numbers of qualified staff within the responsible public authorities, as well as providing them with adequate preparation and training. Without sufficient institutional capacity and the necessary expertise, effective administration of such a complex emissions trading system will be challenging.
Following the meeting, the participants agreed to continue discussions on the ETS reform and practical aspects of its implementation. The next discussion is scheduled to take place on the platform of the Ukrainian Climate Office, with the participation of relevant stakeholders.
We thank the EU Delegation to Ukraine for the open dialogue, its support for the business community’s position, and its willingness to work together towards an effective, transparent and predictable ETS framework for Ukraine.

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