Ukraine MRV system
Start & End Date: 2016-2019
Country/Countries: Ukraine
Multilateral Institution(s) Involved: World Bank
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 emission level of 1990. By 2020, it aims to reduce GHG emissions by 20% than the base year, and by 50% by 2050. Energy sector remains the main source of GHG emissions – it accounts for 70% of emissions, but its share in the aggregated emission structure is gradually decreasing: In 1990, the energy sector accounted for almost 74% of total emissions but in 2009 decreased to 69.7%. The share of agricultural sector decreased from 11.3% in 1990 to 9.3 % in 2009. On the contrary, the share of industry has grown from 13.9% in 1990 to 18.5% in 2009. The share of the waste sector also increased by almost 3 times during this period but still remains low (2.6% in 2009). Restructuring the economy under the low carbon growth scenario is one of Ukraine’s top priorities as energy efficiency in Ukraine is 2.1 times lower than in the world’s average and 4 times lower compared to developed countries. Ukraine is also one of the leaders in terms of the amount of investments under the flexible mechanisms of joint implementation and emissions trading. In collaboration with the PMR, Ukraine plans to focus on two target sectors: electric power and metallurgy having the highest economic, technological and institutional capacity of emission reduction. These two sectors were chosen based on three criteria: sector share in the total GHG emissions, size of the sector companies and potential emission reduction.
The PMR will support Ukraine to design an installation-level energy sector MRV and lay out a road map toward implementation of an emissions trading system (ETS). To achieve this objective, following activities have been designed: I. Technical assistance in development of relevant regulatory MRV framework–as the necessary step towards developing the Ukrainian legislation on ETS - based on the draft law on MRV and relevant secondary legislation for data monitoring and reporting, procedures of accreditation and verification; II. Development and implementation of MRV pilots in selected sectors (including energy, iron & steel, coke, cement, etc.) to facilitate interactions and learning-by-doing for all stakeholders involved in the MRV system (i.e. government, regulated entities, verifiers and experts) with expert assistance, capacity building, and training throughout the complete monitoring, reporting and verification cycle; III. Development of a training program to standardize the trainings (of installations, trainers, verifiers, etc.) and carrying out MRV trainings for installation operators, verifiers and other stakeholders; IV. Supporting of a specifically designated/established body for the MRV system in Ukraine by provision of a transitional international backup through the Help Desk. The Help Desk should assist regulated installations in complying with their new obligations under the MRV requirements, and future market-based instruments to be selected by the Government of Ukraine; and V. Analytical work on ETS upon request of the MENR and in coordination with other technical assistance projects.
As of 2017. the PMR project in Ukraine achieved the following progress: All administrative issues related to the launch of the Project were resolved in a timely manner and the Project Implementation Unit (PIU) was established in August 1, 2016. The PIU developed the Terms of References (ToRs) for the selection of the consultancy companies to work on major components of the project. Four ToRs were prepared and approved through WB procurement procedure in accordance with the deadlines set in the Project Implementation Plan, namely (1) Technical Assistance in Development of the National MRV Legislation; (2) Development of MRV Guides, Training, Help Desk and Activity-Specific Monitoring Methodologies Related to Installation; (3) Pilot Activities for Monitoring and Reporting of GHG emissions and ETS Benchmarks Development; and (4) Verification Pilots and Training. The PIU has started activities related to the engagement of stakeholders, including invitation of the representatives of all industry sectors to various project activities as detailed below. The Project was presented to relevant Ministries, Committees of the Parliament of Ukraine as well as NGOs. Teams of consultants for all four major components were selected in line with the World Bank procedures, and the related activities have commenced.