Rapid Environmental Assessment for Ukraine

Despite some progress in addressing environmental issues, the country's environment remains in a critical state. The major commitments to improving the environment have been externally catalyzed, driven mainly by Ukraine's efforts to integrate itself and its standards into the international community and by technical assistance provided. Ukraine has achieved significant steps in developing its environmental legislation, including signing international conventions and adopting a wide range of legal acts and programs. The scope of Ukrainian environmental legislation is comprehensive, covering most areas of environmental protection and natural resources management. However, the country faces difficulties in implementing and enforcing environmental legislation due to weak coordination, poor regulatory impact analysis, and limited administrative capacities and financial resources, especially at the regional and local levels. The European Union (EU)-Ukraine Association Agreement (AA) shapes the current legal and regulatory framework, committing Ukraine to bring its legislative and regulatory frameworks into line with those of the EU in several areas, including environment and climate. Many laws are being amended according to Annexes XXX and XXXI to chapter 6 (Environment) of the AA, with 26 directives and three EU regulations to be adopted in accordance with the scheduled approved by the Cabinet of Ministers of Ukraine (CMU) in 2017. However, the country is lagging behind the AA implementation schedule, with only 56 percent of planned measures implemented as of the second quarter of 2021. Digitalization is a priority across all branches of the Government of Ukraine (GoU), with many registers and data sets opened to the public. The national online platform EcoSystem, launched on June 8, 2021, provides access to 35 environmental information registers and integrates 29 environmental services into the national Diia (Action) portal. Water-related legislation aligns with the EU Water Framework Directive, with major achievements including introducing integrated water resource management, establishing basin principles for water resource management, and developing procedures for river basin management plans. The land management legal framework has been dramatically changed due to decentralization reform, with state-owned lands located outside settlements transferred to communal ownership and the turnover of farmland becoming legal. These changes require further detailing in bylaws, as well as extensive capacity development of local government. Neglected for years, forest management will be reformed after the State Forest Management Strategy of Ukraine through 2035 is adopted. The GoU is intensifying its work to increase the share of protected areas, create new reserves, and manage and preserve the Emerald Network territories, an ecological network of protected areas set up by the Bern Convention contracting parties. Ukraine's climate legislation is represented in several documents, ensuring their consistency with each other and with other legislation is a significant task. The recently approved 2nd Nationally Determined Contributions (NDC2) became a major milestone, forming the foundation for green investment. To achieve the newly established commitment of reducing greenhouse gas emissions by 65 percent compared to 1990 levels by 2030, Ukraine needs significant funding and tremendous economic and workforce transformation. For this, the GoU launched the Green Bond market in July 2021 and plans major reform of public environmental finances. In the same month, the GoU started a just transition of coal regions program as the first national program out of many to decarbonize the economy. Despite a few wins, waste management legislation has been stalled for the last year, with the draft law "On Waste Management" stuck in Parliament after the first reading, and over 1,000 suggested amendments need to be addressed. Priorities of the Ministry of Environmental Protection and Natural Resources, re-established in June 2020, emphasize resolving the following environmental issues: industrial pollution; waste management, including nuclear waste; rational use of natural resources, including forestry sector reform; sustainable management of water resources and fisheries; and biodiversity conservation.