ETS Emissions by Sector in Ukrane (2019-2021)

Yesterday, on 25 June 2024, the EU launched accession negotiations with Ukraine and Moldova. To become a full member of the EU, Ukraine will need to adopt, among others, the EU's decarbonisation instruments, including its cornerstone, the EU Emissions Trading System (ETS1).

The sectors covered by the ETS1 were previously more carbon-intensive in Ukraine than in many EU countries. According to the National Inventory Report data, their emissions peaked in 2021 at 190 million tonnes. The equivalent amount of allowances would have been worth €10 billion. Implementing adequate carbon prices in Ukraine will facilitate an efficient transition towards climate neutrality and provide a suitable financial mechanism for decarbonisation and energy efficiency measures.