Law on Energy Efficiency Fund (No. 5598) ( 2017 )

Law No. 5598 defines the legal, economic, and organizational foundations for the establishment and operation of the Energy Efficiency Fund. The Fund is established to support energy efficiency initiatives and introduce incentive and support measures for energy efficiency improvements and energy saving in buildings, in particular in the residential sector. It takes into account the national plan…read more

Law 1391-VI on Promotion of Biological Fuels Production and Use ( 2009 )

The main objectives of Law 1391-V are to: - Save fossil fuels; - Decrease dependency from energy imports; - increase its energy security; and - Decrease the negative impact on the environment caused by burning fossil fuels. These four objectives will be achieved via promotion of biofuels. The Law introduces a definition of biofuels and…read more

Law 2509-IV on Combined Heat and Power (cogeneration) and Waste Energy Potential, Amended by Law 2592-VI, Code 2755-VI, Law 2856-VI, and Law 3610-VI of 07.07.2011 ( 2005 )

The Law defines the legal, economic and organisational principles of business relations in energy with respect to the use of cogeneration, regulates the relations connected to the energy generation, transmission and supply of electricity and heat from cogeneration plants. It creates a legislative framework and to facilitate improvement of energy efficiency during energy production processes;…read more

Law 555 -IV on Alternative Energy Sources, amended by Law 601-VI ( 2003 )

This law defines the legal, economic, environmental and organisational principles of alternative energy sources and promoting their use in the energy sector. Its aim is to increase production and consumption of energy produced from alternative sources, to conserve traditional energy resources and reduce dependence on fuel imports. It calls for restructuring production and efficient consumption…read more

Law 1391-XIV on Alternative Fuels, last amended by Law 4970-VI ( 2000 )

The law introduces the framework for financial mechanisms to stimulate biofuels and other alternative fuels in order to save energy resources and reduce dependence on imports. It aims at reducing environmental impact by using various kinds of waste as raw material for the production of alternative fuels. The law foresees support to develop scientific and…read more

Law 575/97-BP on Electricity, amended by Law 601-VI and Law 5485-VI on Green Tariff (Feed-in Tariff) ( 1997 )

This Law determines the legal, economic and organizational principles on electricity, and regulates the relations, related to production, transmission, supply and use of energy, providing of power safety of Ukraine, competition and defence of rights for users and workers of industry. The amendment by Law 601-VI defined green tariff as the special rate to purchase…read more

Law 74/94-VR on Energy Saving, amended by Law 783-XIV and Law 2509-IV ( 1994 )

The law on Energy Savings regulates energy relations between economic entities, and between the state and the corporations and individuals in the field of energy, associated with extraction, processing, transportation, storage, production and use of energy resources, interest of companies organisations and individuals in energy saving, energy-saving technologies, developing and producing less energy machinery and…read more

Energy Strategy to 2030, approved by Decree No. 1071-p and to 2035 approved by Decree no. 605-p ( 2013 )

The Energy Strategy to 2030 outlines the strategic objectives for energy sub-sectors. Its broad objectives are to create favourable conditions for meeting energy demand, increase energy security, reduce the impact of the energy sector on the environment, reduce the cost of energy production, integrate Ukraine’s energy system into the European energy system, and strengthen Ukraine’s…read more

National Action Plan on Implementation of the Kyoto Protocol, adopted through Resolution 346-p of the Cabinet of Ministers ( 2005 / Mitigation Framework )

The National Action Plan on the Implementation of the Kyoto Protocol is directed at addressing the following tasks to: - Improve the national GHG emission and absorption assessment system - Prepare and submit in a timely fashion to UNFCCC Secretariat of GHG emission and absorption reports - Create favourable conditions to implement the flexible mechanisms…read more

Economy-wide

NDC Laws and National Policies

Will not exceed 60% of 1990 GHG emissions level in 2030

Economy Wide | Base Year Target | Target year: 2030 | Base year: 1990

Source: NDC

There are no quantifiable targets found in the laws and policies.

Agriculture

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Buildings

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Coastal Zones

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Cross-Cutting Area

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Disaster Risk Management (DRM)

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Energy

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Environment

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Health

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Industry

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

LULUCF

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Social Development

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Tourism

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Transportation

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Urban

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Waste

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Water

NDC Laws and National Policies
There are no quantifiable targets found in the NDC.There are no quantifiable targets found in the laws and policies.

Ukraine ratified the UNFCCC and the Kyoto Protocol in 1997 and 2004 respectively and the country’s commitments under the Kyoto Protocol are not to exceed the emissions level of 1990. The government aims to reduce GHG emissions by 20% from the base year by 2020, and 50% by 2050. The 20% reduction pledge against 1990 was made in 2009, at COP15, when Ukraine agreed with the Copenhagen Accord under certain conditions. Specifically, Ukraine conditioned its acceptance to: (i) having the agreed position of the developed countries on quantified emissions reduction targets of the Annex I countries; (ii) keeping its status as a country with an economy in transition and relevant preferences arising from such status; (iii) keeping the existing flexible mechanisms of the Kyoto Protocol; (iv) keeping 1990 as the single base year for calculating Parties commitments; and (iv) using provisions of the Kyoto Protocol for calculation of the quantified emissions reduction of the Annex I countries of the Kyoto Protocol for the relevant commitment period.

Ukraine has no national strategy on emission reduction of GHG. Instead, in 2005 it adopted a National Action Plan for Implementation of the Kyoto Protocol. The National Action Plan primarily focuses on the development of a GHG emissions inventory, of an absorption inventory and preparation for use of financial mechanisms. Following the National Action Plan, a whole body of other regulations were introduced to support climate policy. The key objective is to facilitate use of financial mechanisms under the Kyoto Protocol. Particularly, significant attention is given to implementing joint implementation (JI) projects and emission trading schemes (ETSs).

The climate change agenda is guided by the Ministry of Environmental Protection, and by the Ministry of Fuel and Energy. Within the Ministry of Environmental Protection, a State Environmental Investment Agency (SEIA) – previously the National Environmental Investment Agency (NEIA) – was created in 2007. The Agency is in charge of implementing JI projects, establishing a national ETS and a green investment scheme. SEIA has been undergoing numerous institutional changes, including a 70% budget cut in September 2014 and the establishment of a Liquidation Committee in late October. All SEIA functions will be transferred to the Ministry of Ecology and Natural Resources. The Ministry of Fuel and Energy is responsible for formulating strategy and policy for the energy sector. The Ministry is supported by a newly established National Commission for State Energy and Public Utilities Regulation. The Commission is responsible for the national Wholesale Electricity Market, as well as markets for oil, gas and oil products. It also oversees state policy implementation, and sets heat, electricity, all residential and communal tariffs.

Ukraine is experiencing arguably Europe’s biggest security crisis since the Cold War period. From the end of February 2014, demonstrations by pro-Russian and anti-government groups took place in major cities across the eastern and southern regions of Ukraine. During the unrest, Crimea was annexed by the Russian Federation and protests escalated into an armed separatist insurgency. In the midst of this security crisis developments on climate policy were modest in the past year. 

Energy supply

Primary energy supply is dominated by natural gas (41% of the total). Renewable energy, mostly hydropower, accounts for about 4% of primary energy. Trying to change this profile, the 2030 Energy Strategy established a target of increasing the share of renewable energy sources in the overall fuel and energy balance from 3% to 10% by 2030.

To stimulate the operation and development of renewable energy sources in Ukraine, a special feed-in tariff was introduced in 2009. By 2012 more than 90 companies generating electricity from renewable energy sources in Ukraine applied the green tariff. A new commission establishes green tariffs for each company that generates electricity from renewables and for each type of renewable sources: wind, solar, biomass, small hydroelectric power plants (i.e. generating capacity not exceeding 10MW). Green tariffs are established until 2030 and are reviewed by the new commission on a monthly basis with a guaranteed “minimum floor” set in euros. Green tariffs are applied to new construction projects as well as existing renewable energy plants.

A number of developments in energy policy are the result of an energy co-operation initiative with the European Commission. This co-operation was established in 2005 through a Memorandum of Understanding that establishes a joint strategy towards the integration of the Ukrainian and EU energy markets. In 2011, Ukraine became a member of the Energy Community with the EU.

As part of this international engagement, the revised Energy Strategy to 2030 set up a target for the share of renewable energy in final energy consumption at 11% by 2020, as compared to a share of 5.5% in the base year of 2009. The planned (possible) amount of installed power capacity of different RES power plants in 2030 should be: wind energy 3-4GW; solar energy 4GW; small hydro 1-1.5GW of electricity and 10-15GW of heat. While the new draft Energy Strategy foresees a significant increase in the use of renewable sources, further efforts will be required to meet this ambitious target by 2020. For instance, Ukraine will have to implement the basic EU renewables legislation (including the EU Renewable Energy Directive), and submit a Renewable Energy Action Plan for the period up to 2020. As a result, the draft “2020 National Renewable Energy Action Plan (NREAP)” was adopted by the government in October 2014, with core indicator of renewable energy share of minimum 11% by 2020.

Energy demand

Ukraine’s energy intensity is three times higher than the EU average and is the key driver of GHG emissions in the country.  Such poor energy intensity is attributable, in part, to historically low energy prices, especially for natural gas, which biased the incentives in favor of inefficient and energy intensive technologies.

The institutional framework for energy efficiency has undergone a number of changes. The National Agency on Ensuring of Efficient Use of Energy Resources (NAER) established in 2006 was replaced by the State Agency on Energy Efficiency and Energy Saving (SAEE) in 2011. SAEE is tasked with promoting energy efficiency and renewable energy deployment. The responsibility for energy efficiency was moved from the Cabinet to the Ministry of Economy and Trade, which must approve draft legislation developed by SAEE.

The most important national policy in managing energy demand is the 2030 Energy Strategy. The revised Strategy was approved in 2013 and promulgated by the Ministry of Energy and Coal Industry in February 2014. It establishes targets to reduce the energy intensity of GDP by 20% by 2016 compared to 2008; reduce energy intensity of GDP by 50% by 2030; reduce electricity losses through power grids from 14.7% in 2005 to 8.2% by 2030. An update of the Energy Strategy is under discussion and proposes the following parameters to be reached by 2035: reduce GDP energy intensity to 0.17 nominal units per USD1 of GDP, reach 20% of renewables in energy balance, and technical integration to the EU electricity and natural gas market by 2025 by ensuring technical transmissions on the level of 15% of GDP. In addition, SAEE is revising the “National Energy Efficiency Action Plan” with the view to reflect latest state priorities and developments.

The draft law on the efficient use of energy resources, which should replace the 1994 Law on Energy Conservation, was submitted to Parliament for approval in 2013 but was rejected. The draft law on energy efficiency of buildings passed its first reading in 2012, but was also rejected. As a result, the Ministry of Regional Development, Construction and Housing and Communal Services is revising the draft law, as well as preparing the related secondary legislation. Some related regulations, for instance the method of calculation of energy performance of buildings, have already been adopted.

Carbon pricing

Among the former Soviet Union countries Ukraine became the most successful in accessing the Kyoto Protocol market mechanisms. It is currently the largest Emissions Reduction Units (ERU) supplier, with 184 registered JI projects and a total of 130m issued ERUs. The procedure of drafting, review, approval and implementation of JI projects was established in 2006. Following this act, the Cabinet of Ministers issued different Orders establishing the requirements for the preparation of JI projects. It is also the fourth largest Assigned Amount Unit (AAU) seller by volume, with 47m AAUs contracted between 2008 and 2012. The Ukrainian Green Investment Scheme (GIS) became operational in 2010, with the first batch of projects approved in November 2010.

The success of the carbon markets motivated the government to seek to introduce an ETS. Four draft laws on emissions trading were submitted to the Supreme Council. The fourth draft law on the regulation of energy efficiency was submitted to the Fuel and Energy Committee in 2010. It was approved in the first reading but not the second, due to procedural changes incurred by administrative reform and new budgetary and taxation legislation. Nevertheless, SEIA is working on a new draft law on emissions trading. Collaborating with the World Bank, through the Partnership for Market Readiness project, SEIA is focusing its efforts on developing an improved carbon tax supported by a MRV framework as a first step towards the ETS. Under the proposed approach, and following the EU-Ukraine Association Agreement on approximation of Ukraine national legislation to EU laws, discussions on the ETS will begin in 2015.

REDD+ and LULUCF

Forest management is organised on the basis of the State Programme “Forests of Ukraine”, approved by the Cabinet of Ministers in 2009. The Programme aims to improve forest conditions and quality, ecological and protective functions, and forest productivity. The expected outputs of the Programme are an increase in forest covered areas of 0.5m ha, in forest cover from 15.6% to 16.1%, and in growing stock by 16.7%. These targets imply the adoption of carbon capture using land use, land use change and forestry mechanisms.

Adaptation

Adaptation studies and initiatives are incipient in Ukraine. The government is starting to consider practical guidance and background information on how to undertake adaptation activities. In a 2012 OSCE Report commissioned by the government, there is a brief description of the expected climate impacts and vulnerabilities over the short and medium term. In 2013 the SEIA reported that a national climate change adaptation plan should be sent to the Cabinet of Ministers for consideration. According to the agency, the plan will concern all economic sectors, including agriculture, energy and healthcare.

Another current initiative has been the development of a vulnerability assessment of the Danube Delta region to climate change, which covers the Moldova, Ukraine and Romania. The 2013 Vulnerability Assessment, supported by the European Commission, resulted in a Climate Change Adaptation Strategy and Action Plan for the Danube Delta Region (2014), which includes measures like ecological restoration applied to degraded lands and using local resources in a responsible way.

Environment-People-Law v. Cabinet of Ministers of Ukraine and National Agency of Environmental Investments (Lviv Circuit Admin. Court, 2009) (Opened in 2009 )

Citation/reference number: [no citation available]
Jurisdiction: Ukraine
Core objective(s): Sought access to government information on greenhouse gas emissions trading
Current status: Decided

In October 2009, the Ukrainian public interest organization Environment-People-Law (EPL) filed suit against the government, seeking to compel the dissemination of information on international greenhouse gas emissions trading. EPL specifically seeks information regarding an agreement between Ukraine and Japan, where the Japanese government agreed to buy 30 million tons of carbon offsets from the Ukrainian…read more

Environment-People-Law v. Ministry of Environmental Protection (Commercial Court of Lviv, 2008) (Opened in 2008 )

Citation/reference number: [no citation available]
Jurisdiction: Ukraine
Core objective(s): Sought to compel government action on national greenhouse gas reductions
Current status: open

The Ukrainian public interest organization Environment-People-Law (EPL) sought to compel the Ministry of Environmental Protection to develop a climate change policy for Ukraine; work towards fulfilling its climate change obligations under the United Nations Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol and the National Plan; and raise public awareness on climate change issues.…read more

The principal source of Ukrainian law is the Constitution. Below the Constitution, the legal system is code-based. There are a number of codified laws in the main spheres of national legislation, such as the Civil Code, the Economic Code, the Criminal Code, the Land Code, the Family Code, the Customs Code, the Code of Civil Procedure, the Code of Criminal Procedure, the Labour Code, and the Air Code. The highest legislative body is the unicameral parliament, known as the Supreme Council. Its 450 members are elected by a national vote for a five-year term. The seats are allocated proportionally based on the parties that gain 3% or more in the national parliamentary elections. The last elections were held in October 2014, and the next elections are scheduled to take place in 2019.

The legislative process in the Supreme Council has a number of stages. Initially, a legislative proposal is presented; if accepted, a draft law is prepared by the government or a special parliamentary committee. Then, the draft law is introduced by the President, MPs, the Cabinet or the National Bank. The draft law is then submitted to relevant stakeholders, who present their proposals for improvement, or modification of the draft law. The law can be adopted in the first, second, and third reading. Once the law is voted and approved, it is submitted to the President. The President may exercise the right of veto and return the law to the Supreme Council, but the veto can be overruled if the law is adopted at the repeated consideration by a 2/3 majority of the Supreme Council (300 votes). Once the law is signed by the President, within 10 days it must be included in the Unified State Register of Legal Acts, where it receives a registration code, and is published in the official media. The law comes into force 10 days after its official publication, if not otherwise stipulated.

The next layer is secondary legislation. Different acts are issued by the President, the Cabinet of Ministers, the National Bank, ministries and other state agencies within their specific sphere of competence in the form of decrees, resolutions, instructions and orders. These documents are mandatory.

Local state administrations and bodies of local self-government issue resolutions, orders, decisions etc. to ensure the observance of laws and freedoms of citizens, and the implementation of development programmes and regional budgets.

Last modified 21 August, 2017