Bill No. 15386 on the National Greenhouse Gas Emissions Trading System
Ukraine's Verkhovna Rada has registered an alternative draft law, No. 15386, concerning the National Greenhouse Gas Emissions Trading System. Submitted by nine lawmakers led by Andriy Motovylovets, this bill diverges from the government's version, particularly in how funds would be allocated. Instead of creating a Ukraine Modernization Fund as proposed by the government, the alternative bill directs revenues to the Decarbonization Fund of Ukraine, which is managed by the State Agency on Energy Efficiency and Energy Saving.
As of the time of this publication, the full text of the alternative bill and its supporting documents have not been made public. Meanwhile, the Ministry of Economy, Environment, and Agriculture continues refining the government's version of the law. The European Commission has already provided feedback on the government's draft, but experts and business representatives have not yet had the chance to review the alternative proposal.
Funding Limits and Expert Reactions
Bill No. 15386 caps funding for industrial decarbonization projects at no more than 10% of their total cost. This has raised concerns, as the EU's Innovation Fund can cover up to 60–100% of additional project expenses. Furthermore, the parliamentary version centralizes system administration and financial oversight within the State Agency on Energy Efficiency and the Decarbonization Fund. It also provides less detail on how Ukraine's system would integrate with the EU Emissions Trading System (EU ETS).
Experts have offered mixed assessments of the new bill. Representatives from EcoPolicy stated that
“the introduction of the parliamentary draft appears rushed.”Meanwhile, the European Business Association noted that
“we cannot evaluate the document because it is not publicly available.”The reform's economic impact is a critical factor, as it is one of the conditions for Ukraine's integration into the EU's internal market, a point emphasized by EcoPolicy experts.
Both the proposed bill and its alternative highlight the ongoing debate in Ukraine over environmental policy and decarbonization. With the EU tightening its environmental standards, Ukraine must strike a balance between supporting domestic industry and meeting external requirements. Further discussion and refinement of legislation in this area could significantly affect the country's economy and environmental outlook.