Among the countries that implemented a carbon tax, Ukraine’s carbon price is one of the lowest. Studies have shown that it was virtually ineffective in strengthening energy efficiency and reducing carbon emissions, thus it does not support meeting international climate obligations. The country’s current efforts to introduce a range of measures to achieve emission reduction goals call for a revision of Ukraine’s carbon pricing strategy.
To avoid possible border-tax adjustment effects from the EU, we propose a price consistent with projections of the EU carbon price for 2030. Consequently, in the following, the implications of a carbon tax of EUR 39/t CO2 are discussed.
What is a Policy Note?
Policy Notes provide a very concise overview of one specific topic. They often build on earlier more substantive work. Some Policy Notes were also published as part of the Quarterly Monitoring Reports.