23 Oct 2023 16:22

Ukrainian Natural Resources Ministry with EU, IKI support opens Climate Office in Ukraine

MOSCOW. Oct 23 (Interfax) - The Climate Office, which was opened with the assistance of the European Union (EU) and the International Climate Initiative (IKI), will begin operating in Ukraine, Ukrainian media reported, citing a statement by the Ukrainian Ministry of Environmental Protection and Natural Resources on the social media.

Ukrainian Environment and Natural Resources Minister Ruslan Strilets, European Commissioner Virginijus Sinkevicius and German Federal Minister for Environment, Nature Conservation, Nuclear Safety and Consumer Protection Steffi Lemke opened the Climate Office as part of the United for Justice. United for Nature International Conference, which took place in Kiev on October 20-21.

It is noted that the Climate Office will support the Ukrainian government in pursuing its climate policy, assist regions and businesses to implement decarbonization and adaptation projects, as well as become a tool to attract 'green' finance for Ukraine's recovery. Additionally, it is stated that it is the office that will be one of the key stakeholders in facilitating Ukraine's cooperation under Article 6 of the Paris Agreement and its accession to the international carbon market, and will be engaged in the development of an emissions trading system in Ukraine.

"Today, tremendous work is being done for our country to become a member of the EU and be within the boundaries of the CBAM (Carbon Border Adjustment Mechanism). We are planning to launch a pilot national emissions trading system (ETS) as early as next year. We will give producers the opportunity to try to make transactions on the ETS market and understand how this market operates," Strilets said, commenting on one of the areas of operations of the office.

In 2025, carbon certificates should be introduced, which will allow Ukraine and its producers to sell excessive volumes of CO2, which have not been emitted.

"In 2026, the emissions trading system will be fully operational in Ukraine. For now, we need to verify all available data and show the world our potential regarding free quotas. We stand ready to share free emissions and contribute to the global climate track," Strilets said.

Previously, Strilets said that he deems it necessary to endorse a law on national ETS already next year in order to introduce it in 2025 and thus avoid obstacles for Ukrainian exports associated with the launch of the CBAM on January 1, 2026.

"If we create our own national ETS, which will fully comply with the European one, including the price of CO2 emissions, or integrate our ETS with the European one, then we will be absolutely not afraid of the CBAM. This is because we will already be in this CBAM inside its borders. Now those who want to supply products to us will pay. In fact, our objective is to move the CBAM boundary and get inside this project," Strilets said.

The International Climate Initiative (IKI) is the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)'s instrument for international financing of climate change mitigation and biodiversity conservation.