In June 2014, Ukraine signed an Association Agreement with the European Union. The Agreement establishes a political association between Ukraine and EU and includes broad trade liberalization as well as cooperation and convergence of national legislation and policies across a range of areas, including energy and environment.

This also requires the establishment an emissions trading system in Ukraine within two years of the Agreement’s entry into force. The system would at first be distinct from the European Emissions Trading Scheme; Ukraine is to develop a national allocation plan to distribute allowances to allocations, which can subsequently be traded domestically.

To enter into force, the Association Agreement needs to be ratified by the parliaments of Ukraine and the EU member states, as well as the European Parliament and the European Atomic Energy Community.

Full text of the agreement is available at the Official Journal of the European Union