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Support for the establishment of an emission trading scheme (ETS) in Ukraine
Ukraine establishes a nationwide emission trading scheme to help mitigate climate change. On behalf of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), the ETS project supports Ukraine in setting up an emission trading scheme. The project helps Ukraine’s Ministry of Ecology and Natural Resources in designating an authority that will implement the new system. Experts working on the project advise the Ministry’s employees on calculating the upper limits for greenhouse gas emissions in Ukraine. In future, thesetotal emissions are to be divided up between companies covered by the emission trading scheme in the form of emission allowances. A specially developed data management system will help the authority to monitor and verify the companies’ greenhouse gas emissions. The emission trading scheme is a transparent and efficient tool for reducing emissions at the lowest possible cost to the economy. Allowances can also be traded: companies which do not use all of their allocated emission allowance can sell them to other companies that emit more greenhouse gases. Trading puts a price on the allowances – and therefore on emissions. Ukrainian companies can use the resulting income to purchase or partially refinance environmentally friendly technology. This not only benefits companies in Ukraine, but also – and most importantly – the environment and people all over the world.