Ukraine has approved a regulatory framework for the international issuance and transfer of carbon credits under Article 6 of the Paris Agreement. The cabinet of ministers adopted the measure on Wednesday, giving the country its first formal legal basis for participation in Paris-backed carbon markets.
A dedicated team restores land impacted by conflict through organized reforestation efforts. AI generated image.
The government published a resolution on its website establishing the legal and administrative procedures for the authorisation and transfer of Internationally Transferred Mitigation Outcomes (ITMOs)—the unit of exchange under Article 6.2, which governs bilateral carbon market agreements between countries. ‘The main purpose … is to establish procedures for the issuance and authorisation of units and for the application of corresponding adjustments upon their transfer to an acquirer’, the 15-page document states.
The resolution introduces a two-year pilot phase during which authorities will test the issuance, transfer, and reporting of carbon credits ahead of potential full-scale implementation. Priority sectors include fuel combustion, industrial production, agriculture, waste management, forestry, and energy infrastructure.
Read more: European Commission clarifies CBAM requirements for importers
Annual authorised issuance is capped at no more than 1% of Ukraine’s 1990 carbon emissions. According to UN data, Ukraine emitted 706.5 million tonnes of CO₂ equivalent (tCO₂e) excluding land use and forestry in 1990, or 916.4 million tCO₂e including the sector—placing the implied annual transfer ceiling at roughly seven to nine million ITMOs. Project developers are required to withhold at least 2% of issued credits from international authorisation, reserving them for Ukraine’s own Paris Agreement targets.
Ukraine has previously signed carbon market cooperation agreements with Switzerland and Japan under Article 6.2. The country’s substantial carbon reduction potential and its Kyoto Protocol carbon market history have long positioned it as a candidate for high-volume ITMO supply. Progress on domestic carbon market infrastructure had been delayed by the country’s focus on its military effort and economic continuity.
The Article 6 framework arrives alongside Ukraine’s move to establish a national emissions trading system (ETS), consistent with the country’s EU membership negotiations. A public consultation on draft ETS legislation launched in mid-May was due to conclude on Monday, according to a briefing by the International Carbon Action Partnership (ICAP). The proposed ETS would cover the power, industrial, aviation, and maritime sectors. A transitional phase from 2028 to 2034 would phase compliance obligations from 10% of verified emissions in 2028 to 100% by 2034. Companies could use domestically issued decarbonisation credit certificates to meet part of their compliance requirements.
Read more: Carbon credit project stewardship: what happens after credit issuance
As Article 6 markets open across new jurisdictions, the standards applied to carbon credit development become the measure of a project’s value. Green Earth’s large-scale nature-based carbon projects are accredited to leading international standards, with full supply chain oversight from initial design and implementation through to long-term monitoring and credit issuance. The result is verified environmental impact across ecosystems, communities, and biodiversity—built to meet the highest levels of regulatory scrutiny. As new frameworks like Ukraine’s define the rules of participation, Green Earth’s projects are already built to meet them.
