1. Key points of national policy on GHG emission reduction

• There is no strategy on GHG emissions reduction in Ukraine. The document is being developed since 2005 but the final document hasn’t been worked out yet. Absence of legal regulation of this issue leads to impossibility to implement main goal of UNFCCC to achieve stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. The legislation on climate change issues in Ukraine is often very declaratory without enforcement mechanisms, there is no responsibility for violation of legal rules and obligations on climate change issues, the competence and authorities of state governmental bodies that are obliged to implement at least program documents aren’t clearly defined.

• The control over the activity that impacts climate change isn’t executed in Ukraine, there are no definite obligations to reduce GHG emissions in different sectors of economy.

• There is no mechanism of realization of article 16 of the Law of Ukraine “On the Protection of Atmospheric Air”. Pursuant to the part 2 of the article 16 («Regulation of the activity that impacts weather and climate») according to international agreements enterprises, institutions and organizations are obliged to reduce and completely stop the production and usage of chemical substances that impact the ozone layer and also to reduce emissions of CO2 and other substances, accumulating of which in atmospheric air can lead to negative influence on climate change. Thus, it is necessary to create preconditions and mechanisms in Ukraine for realization and implementation of this legal norm. As for today, no responsibility for the violation of this norm is envisaged by law.

• There is no registry of enterprisers in Ukraine which emit green-house gases.  

• Influence of projected activity on climate change isn’t assessed during EIA process in Ukraine.

• CO2 isn’t included into the list of contaminants in Ukraine; as a result the control over its emissions isn’t executed.

• climate change litigation by EPL on recognition illegal the inaction of the Ministry of environmental protection of Ukraine in executing national and international obligations on climate change.

2. Key points on International emissions trading:

• Limited access to information on international emissions trading, especially the agreement signed between Japan and Ukraine on selling by Ukraine GHG emission quotas. There is no official information dissemination on the sum of the agreement, National Agency of Environmental Investments that signed the agreement claims that this information is confidential.

• Litigation process of EPL on illegal limitation of access to information on international emissions trading by Ukraine against National Agency of Environmental Investments and the Cabinet of Ministers of Ukraine.

• There are no relevant legal regulations on international emissions trading process in Ukraine. The legal nature of the agreement between Ukraine and Japan isn’t defined, the status of AAUs isn’t clear according to the legislation of Ukraine. Some legal acts are being adopted after signing the actual agreement. There are no clear criteria of choosing projects to be financed from the revenues received from international emissions trading. It is not clear whether and how the existing criteria will be used, whether the projects have to comply with all the criteria or the criteria will be used in some special order.

• The issue of AAU revenues allocation is crucial in Ukraine; the ruling of the Cabinet of Ministers of Ukraine on the revenues allocation which was adopted in October, 2009 stated that these «budget revenues should be used on the purposes according to the annex of the agreement on international emissions trading» (and the actual agreement is confidential according to state governmental bodies as it was mentioned before). Some of the directions for financing which are foreseen in the annex to this ruling of the Cabinet of Ministers will not result in GHG emission reduction at all and will be not connected to environmental projects (as, for example, travel expenses  during mission within international cooperation on realization of art. 17 of Kyoto Protocol, organizing of meeting in Ukraine within international cooperation which include financing of such measures as cultural programs for the members of foreign delegations, purchase of souvenirs,  buffet service, etc.).

• The functions of legal regulation of international emissions trading, implementation of this mechanism and control over its execution is concentrated within single executive branch of power and even within one governmental body – National Agency of Environmental Investments.