The EBRD has launched a programme to assist Ukraine in meeting its Kyoto Protocol commitment.
Ukraine has agreed to limit its greenhouse gas (GHG) emissions to 1990 levels during the Kyoto Protocol commitment period (2008-12). Through the Kyoto Protocol Joint Implementation (JI) mechanism, Ukraine can attract sustainable energy investments. In addition, the country is expected to have a substantial surplus of emission rights which can be traded with other countries that are short of meeting their emission reduction targets.
Potential to reduce emissions
Ukraine, one of the most energy-intensive economies in the EBRD region, has great potential to reduce emissions. On the request of the Ministry of Environmental Protection of Ukraine, the EBRD developed the Ukraine Carbon Market Facilitation Programme (UCMFP) to assist the State Environmental Investment Agency (SEIA). The agency is responsible for the implementation of the Kyoto Protocol flexibility mechanisms. The project, operational since 2009, is funded by Spain with a €1 million grant.
The Ukraine Carbon Market Facilitation Programme
The UCMFP focuses on the modelling of the country’s GHG emission levels in the medium and long-term, which may help advise the country’s strategy to further emission reductions. Moreover, the project involves the development of the country’s legal, financial and institutional framework for the identification, assessment and trade of carbon credits.
By pooling an international team of experts with local know-how, the UCMFP can share and implement best international practices adapted specifically to the local context. A good example is Ukraine’s recent initiative to introduce a domestic cap and trade scheme. As a capacity-training task, lessons learned within the European Union Emissions Trading Scheme are being shared in the programme’s final phase.