JI APPROVAL SYSTEM IN UKRAINE: OUTLINE AND EXPERIENCES

Ukraine began approving Joint Implementation (JI) projects in May 2007, with 13 projects approved by November 2007. The system is managed by the Ministry of Environmental Protection (MEP), which utilizes a two-stage approval process involving a Letter of Endorsement (LoE) and a Letter of Approval (LoA). While the government prioritizes energy efficiency and renewable energy, the system faces administrative delays due to a lack of staff—only four individuals manage JI—and a lack of legislation regarding the transfer and taxation of Emission Reduction Units (ERUs). Despite these hurdles, project developers generally view the system as reasonable and supported by political will.

• Ukraine's JI project approval process consists of a specific cycle where the Ministry of Environmental Protection (MEP) first issues a Letter of Endorsement (LoE) within one month of application, followed by a Letter of Approval (LoA) within one month after the submission of a full application and verification report.
• The Ukrainian government has set a minimum size for JI projects of 20,000 tonnes of emission reductions per annum to avoid high transaction costs, though small-scale projects as defined by JISC remain eligible.
• To ensure additionality, projects that are financially favorable (where the internal rate of return exceeds bank credit interest rates of 13% or more) must meet specific criteria: ERU sales must cover at least 10% of the project investment, and the carbon price must be at least 50% of the EU ETS price.
• While the government does not maintain an official 'negative list' of project types, it prioritizes energy efficiency and renewable energy, while avoiding coal-to-gas fuel switching projects due to gas price politics.
• The JI approval system is hampered by significant resource shortages, with only four staff members managing the process, leading to delays in issuing LoAs and the loss of documents within the Ministry.
• A critical legislative gap exists regarding the transfer of Emission Reduction Units (ERUs), specifically concerning how Assigned Amount Units (AAUs) are converted into ERUs and the taxation of these units.

APA

Korppoo, A. (2007). JI APPROVAL SYSTEM IN UKRAINE: OUTLINE AND EXPERIENCES. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2014/11/1-ukraine-ji-procedures-bp.pdf

Chicago

Korppoo, Anna. JI APPROVAL SYSTEM IN UKRAINE: OUTLINE AND EXPERIENCES. Climate Strategies, 2007. https://climatestrategies.org/wp-content/uploads/2014/11/1-ukraine-ji-procedures-bp.pdf.

Wikipedia

{{cite report |last1=Korppoo |first1=Anna |title=JI APPROVAL SYSTEM IN UKRAINE: OUTLINE AND EXPERIENCES |publisher=Climate Strategies |date=December 2007 |url=https://climatestrategies.org/wp-content/uploads/2014/11/1-ukraine-ji-procedures-bp.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{korppoo2007approval, author = {Korppoo, Anna}, title = {{JI APPROVAL SYSTEM IN UKRAINE: OUTLINE AND EXPERIENCES}}, institution = {Climate Strategies}, year = {2007}, month = dec, url = {https://climatestrategies.org/wp-content/uploads/2014/11/1-ukraine-ji-procedures-bp.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }