DRAFT Law on Greenhouse Gasesill (not adopted)

(Unofficial
translation)

Draft

LAW OF UKRAINE

ON GREENHOUSE GASES

Chapter I

General Provisions

This
Law determines the legal and organizational basis for prevention and mitigation
of the consequences of climate change and is aimed at meeting commitments of
Ukraine under the UN Framework Convention on Climate Change (UNFCCC) and Kyoto
Protocol to the UN Framework Convention on Climate Change.

The provisions of this Law shall
extend to all economic entities irrespective of form of ownership and type of activity,
which realize anthropogenic emissions of greenhouse gases, protection and
improvement of the quality of greenhouse gas absorbents including those,
regulated by the Montreal Protocol on ozone depleting substances.

Article
1.
Definition of Main Terms

The terms given below in this Law
have the following meaning:

“Emission of greenhouse gases” means
total volume of anthropogenic emissions of greenhouse gases, discharged into
the atmospheric air during a determined period of time;

“Assigned amount” means indicator of
ecological efficiency, characterizing negative anthropogenic impact of
greenhouse gases on the environment, assigned to Ukraine as a party to
International agreements and treaties;

“Equivalent of carbon dioxide” means
indicator of ecological efficiency, calculated in tons according to potentials
of global warming;

“Ecological value equivalent” means
asset, characterizing consumer value of reducing the level of negative
anthropogenic impact of greenhouse gases on the environment;

“Ecological efficiency” means
rational use of natural resources under the existing development level of
machinery and technology, observance of requirements of environmental control,
directed at reducing the negative anthropogenic impact on the climate;

“Emitter” means economic entity,
which bears responsibility for limiting emissions of greenhouse gases in
conformity with this law;

“Green investments” means investment
of received revenues from the sale of assigned amount units and proceeds from
fees and fines for environmental pollution by anthropogenic emissions of
greenhouse gases including for projects, programs and measures, as to results
of the implementation of which the volume of emissions of greenhouse gases is
reduced or other types of environmental pollution;

“Cadastre” means system for
registering quantitative, qualitative and other characteristics of greenhouse
gases, absorption of greenhouse gases and control over the quality of
registration;

“Quota” means maximum quantitative
commitments for limiting concrete type of anthropogenic emissions of greenhouse
gases into the atmospheric air, established for economic entities.

Assigned
amount unit” means unit, which determines commitments of a country, and is
identical to one metric ton of carbon
dioxide or assigned amount of other greenhouse gas, expressed by equivalent of
carbon dioxide with due account to potential of global warming of respective
greenhouse gas;

“Certified emission reduction unit”
means unit, which is created in conformity with Article 12 of the Kyoto
Protocol, and is identical to one metric ton of carbon dioxide or assigned
amount of other greenhouse gas, expressed by equivalent of carbon dioxide with
due account to potential of global warming of respective greenhouse gas;

“Emission reduction unit” means unit, which is created in conformity with
Article 6 of the Kyoto Protocol, and is identical to one metric ton of carbon
dioxide or assigned amount of other greenhouse gas, expressed by equivalent of
carbon dioxide with due account to global warming potential of respective
greenhouse gas;

“Greenhouse gases” means chemical
elements of natural or anthropogenic origin, which absorb and reemit infrared
radiation, the list of which is set forth in the Kyoto Protocol;

“Absorbent of greenhouse gases“
means any process, type of activity or mechanism, which absorbs greenhouse gas,
aerosol or precursor of greenhouse gas from the atmosphere;

“Indicator of ecological efficiency”
means measurement in absolute or specific value indicator;

“Potential of global warming” means
coefficient, which reflects quality of one mass unit of certain greenhouse gas
having an impact on global warming in relation to respective unit of carbon
dioxide for a period of time;

“Joint implementation project” means
project, which envisages the reduction of anthropogenic emissions and/or
increasing of absorption of greenhouse gases in addition to the volume, which
could be reached in another event, and is implemented in conformity with
Article 6 of the Kyoto Protocol to the UN Framework Convention on Climate
Change;

“Register” means system of
registering assigned amounts and their derivatives and movement of property
rights on these objects.

Article
2.
Legislation on Anthropogenic
Emissions and Absorption of Greenhouse Gases

Legislation on anthropogenic
emissions and absorption of greenhouse gases is based on the Civil Code of
Ukraine, Code of Administrative Violations of Ukraine, UN Framework Convention
on Climate Change, Kyoto Protocol, laws of Ukraine “On Protection of the
Natural Environment,” “On Protection of
Atmospheric Air,” the present and other laws, Enactments of the President of
Ukraine, Acts of the Cabinet of Ministers of Ukraine and other documents,
adopted in conformity with legislation.



Article
3.
Outlines for
Reducing Volumes of Anthropogenic Emissions and

Increasing Absorption of Greenhouse Gases

Outlines for reducing volumes of
anthropogenic emissions or increasing absorption of greenhouse gases are, as
follows:

-

Minimizing unfavorable social, ecological and economic
consequences from anthropogenic emissions of greenhouse gases;

-

Ensuring sustainable economic development of Ukraine;

-

Creating stimulating conditions for entrepreneurial
activity in the sphere of introducing new ecological efficient technologies and
achievements, aimed at reducing volumes of anthropogenic emissions and
increasing absorption of greenhouse gases;

-

Scientific substantiation, systematic and complex
nature of the approach to reducing the volumes of anthropogenic emissions and
increasing absorption of greenhouse gases;

-

Shaping and implementation of state policy and
measures in conformity with national conditions, set forth in Article 2 of the
Kyoto Protocol;

-

Standardization of greenhouse gas emissions with due
account to economic expediency, level of technological processes, technical
state of equipment and installations in conjunction with market mechanisms for
reducing greenhouse gas emissions and increasing absorption thereof, aimed at
ensuring economic growth and stimulating the use of new technologies and
innovations;

-

Using market relations and competition as one of the
main tools for stimulating ecological efficiency;

-

Stimulating development of the power engineering
complex, transport, municipal economy, resource saving productions, housing
construction and sphere of services connected with them, improving ecological
state in Ukraine and raising the quality of life of the population;

-

Ensuring economic attractiveness of investments, aimed
at raising ecological efficiency and reducing greenhouse gas emissions.

Article 4.
Objects Regulating Reduction of Anthropogenic Emission
Volumes and

Increasing Absorption
of Greenhouse Gases

Objects
regulating reduction of anthropogenic emission volumes and increasing
absorption of greenhouse gases are, as follows:

-

Assigned amount units of greenhouse gases for all economic
entities on the territory of Ukraine, which are permitted to be discharged into
the atmospheric air in the course of a determined period;

-

Emission reduction units of greenhouse gases reached
as a result of joint implementation of projects by economic entities with
participation of other countries, parties to the Kyoto Protocol, and residents
of these countries;

-

Permits for emission of anthropogenic greenhouse gases
into the atmospheric air, which are established for economic entities;

-

Derivatives of assigned amounts.

Article 5.
Subjects
Regulating Reduction of Anthropogenic Emission Volumes

And/or Increasing
Absorption of Greenhouse Gases

Subjects regulating reduction of anthropogenic emission volumes and/or
increasing the absorption of greenhouse gases are, as follows:

-

Economic entities (emitters), irrespective of form of
ownership, including their associations, branches, departments and other
separate divisions, which do not have the status of legal entity, which realize
anthropogenic emissions, aerosol or precursor of greenhouse gases and/or absorb
greenhouse gases, aerosol or precursor of greenhouse gases from the atmospheric
air on the territory of Ukraine and within boundaries of the Continental Shelf
and exclusive (marine) economic zone;

-

Enterprises, establishments, organizations, empowered on
behalf of the state, and economic entities, which are granted the right to
carry out trading, exchange of anthropogenic greenhouse gas emission units and
other operations in conformity with the effective legislation;

-

Residents, empower by countries, parties to the Kyoto
Protocol, which intend and/or take part in trading assigned amount units of
anthropogenic greenhouse gas emissions, exchange of emission reduction
units by methods, set forth in the
Kyoto Protocol.

Article 6.
Right of Ownership on Anthropogenic Emission Volumes
and/or

Increasing Absorption
of Greenhouse Gases

The overall volume of assigned amount units for the
determined period, which were lower than the quota of assigned amount units for
anthropogenic greenhouse gas emissions in comparison with base level for 1990
in the equivalent of carbon dioxide, which are determined in conformity with
provisions of the Kyoto Protocol, shall be the property of the state.

Chapter II

Authority of State Managerial Bodies in the
Sphere of

Anthropogenic Emissions and Absorption of
Greenhouse Gases

Article
7.
State
Management in the Sphere of Anthropogenic Emissions and

Absorption of Greenhouse Gases

State management in the sphere of anthropogenic emissions and absorption
of greenhouse gases shall be carried out in conformity with the law by:

-

The Cabinet of Ministers of Ukraine;

-

Main (leading) agency within the framework of central bodies of executive power on
environmental control;

-

Central body of executive power on meeting commitments
of the UN Framework Convention on Climate Change and introduction of Kyoto
Protocol mechanisms.

Article 8. Competence of the Cabinet of Ministers of
Ukraine in the Sphere of

Anthropogenic
Emissions and Absorption of Greenhouse Gases

The Cabinet of Ministers of Ukraine in the sphere of
anthropogenic emissions and absorption of greenhouse gases shall, as follows:

-

Conduct a policy on meeting commitments of Ukraine
under the UN Framework Convention on Climate Change and the Kyoto Protocol to
the UN Framework Convention on Climate Change;

-

Establish procedure for the functioning of a national system for
assessment of anthropogenic emissions and absorption of greenhouse gases;

-

Eestablish procedure for the functioning of a National
Register of Anthropogenic Emissions and Absorption of Greenhouse Gases;

-

Establish procedure for trading derivatives of assigned
amounts;

-

Establish procedure for examination, approval and
implementation of projects, aimed at reducing volumes of anthropogenic
emissions and/or increasing absorption of greenhouse gases;

-

Establish procedure for transfer of assigned amount
units and/or emission reduction units of greenhouse gases to another party or
empowered party by the resident;

-

Establish procedure for determining permits for
greenhouse gas emissions into the atmospheric air for economic entities;

-

Establish procedure for state registration of objects,
which realize emissions and absorption of greenhouse gases, exercise state
control over emissions and absorption of greenhouse gases;

-

Establish procedure for management of revenues
received from sale of assigned amount units of anthropogenic greenhouse gas
emissions, fees and fines for environmental pollution by anthropogenic
greenhouse gas emissions, voluntary contributions and other proceeds envisaged
by legislation, which are accumulated on special account within the framework
of the State Budget.

Article 9. Competence of the Main (Leading) Agency
within the framework of the

Central
Bodies of Executive Power on Environmental Control

The competence of the main
(leading) agency within the framework of central bodies of state power on
environmental control and its bodies on the spot includes, as follows:

-

Shaping state policy on reduction of anthropogenic greenhouse
gas emissions, increasing absorption of greenhouse gases and mitigating
consequences of climate change;

-

Ensuring functioning of national system for assessment
of anthropogenic emissions and absorption of greenhouse gases;

-

Coordinating measures for meeting commitments of
Ukraine under the UN Framework Convention on Climate Change and Kyoto Protocol
to the UN Framework Convention on Climate Change;

-

Distribution of revenues, that accumulate on special
account within the framework of the State Budget from the sale of assigned
amount units of anthropogenic greenhouse gas emissions into the atmospheric
air, voluntary contributions and other proceeds for green investment envisaged
by legislation.

Article 10. Competence of Central Body of Executive Power
on Meeting Requirements of

UN Framework Convention on
Climate Change and Introduction of the

Kyoto Protocol Mechanisms

The competence of the central body
of executive power on meeting requirements of the UN Framework Convention on
Climate Change and introduction of Kyoto Protocol mechanisms include, as
follows:

-

Drafting proposals on shaping and ensuring implementation of
state policy in the sphere of meeting requirements of the UN Framework
Convention on Climate Change and introduction of Kyoto Protocol mechanisms;

-

Examination and approval of projects in the order
established by legislation, aimed at reducing volume of anthropogenic emissions
or increasing absorption of greenhouse gases;

-

Working out integrated measures for mitigating the
consequences of climate change by limiting anthropogenic greenhouse gas
emissions and raising the quality of the absorption of greenhouse gases;

-

Management of revenues, in the order established by
the Cabinet of Ministers of Ukraine, from the sale of assigned amount units of
anthropogenic greenhouse gas emissions, fees and fines for environmental
pollution by anthropogenic greenhouse gas emissions, voluntary contributions
and other proceeds, envisaged by legislation, which accumulate on special
account within the framework of the State Budget.

-

Preparing national cadastres of anthropogenic
emissions and absorption of greenhouse gases, and national reports on climate
change;

-

Drawing up inventory of anthropogenic emissions and
absorption of greenhouse gases;

-

Keeping National Register of Anthropogenic Emissions
and Absorption of Greenhouse Gases;

-

Participating in actions, which lead to the
accumulation, transfer or receiving emission reduction units determined as a
result of joint implementation projects in conformity with the Kyoto Protocol;

-

Organizing cooperation with International Emission
Trading system;

-

Submitting proposals, in the established order, on
drafting of enactments, other normative and legislative acts on climate change,
limiting anthropogenic greenhouse gas emissions, raising the quality of
absorption of greenhouse gases;

-

Ensuring monitoring and accounting as to movement of
emission reduction units;

-

Generating databases of joint implementation projects,
organizing examination and monitoring thereof;

-

Participation in drafting international treaties,
introducing proposals as to their conclusion and denunciation thereof,
conclusion within its jurisdiction of such treaties with the aim of ensuring
the meeting the international commitments of Ukraine on climate change;

-

Participation in international cooperation on climate
change issues;

-

Promoting the attraction of investments for financing
projects on environment control, reducing the volume of anthropogenic emissions
and/or increasing absorption of greenhouse gases;

-

Authorizing subjects of regulation to implement
investment projects on reduction of greenhouse gas emissions, the results of
which affect the volumes of assigned amounts to Ukraine;

-

Exercising control over implementation of projects on
reduction of greenhouse gas emissions, the results of which affect the volumes
of assigned amounts to Ukraine;

-

Organizing and providing circulation of derivatives of
assigned amounts;

-

Working out procedure for the standardization of
greenhouse gas emissions;

-

Exercising observation over market activity;

-

Carrying out, in conformity with legislation, other
functions in accordance with provisions, approved by the Cabinet of Ministers
of Ukraine.

Chapter III

Standardization of Anthropogenic Emissions and

Increasing Absorption of Greenhouse Gases

Article
11.
Standardization of Anthropogenic Emissions and Increasing

Absorption of Greenhouse Gases

Standardization
in the field of regulation of anthropogenic emissions and increasing absorption
of greenhouse gases shall be carried out by the main (leading) agency within
the framework of central bodies of
executive power on environmental control with the aim, as follows:

-

Establishing a package of compulsory norms, rules,
requirements, aimed at reducing
anthropogenic emission volumes and increasing the absorption of
greenhouse gases;

-

Implementing a single scientific and technical policy
in the field of regulating anthropogenic emissions and increasing absorption of
greenhouse gases;

-

Introducing and using the best up-to-date achievements
of ecological friendly technologies, aimed at reducing anthropogenic emissions
and increasing absorption of greenhouse gases.

The Cabinet of Ministers of Ukraine shall establish the procedure for
drafting and approving norms.

Article 12. Permits for Economic Entities on Greenhouse
Gas Emissions

With the aim of conducting state regulation of anthropogenic emission of
greenhouse gases, permits shall be established for economic entities on
anthropogenic greenhouse gas emissions into the atmospheric air.

Anthropogenic greenhouse gas emissions into the atmospheric air can be
realized by economic entities after receiving a permit, which is issued free of
charge in the established order by the main (leading) agency within the
framework of central bodies of executive power on environmental control.

Decision on issuing or refusal to issue a permit shall be taken in the
course of 60 (sixty) calendar days after documents were submitted for
examination.

Grounds for adoption of decision on refusal to issue permit are, as
follows:

-

Violation of requirement as to the drawing up and contents of
documents, substantiated in which are volumes of greenhouse gas emissions,
and/or failure to submit them in full volume;

-

Doubtful data
in given in documents, submitted
for the granting of permit;

-

Exceeding of the quota for greenhouse gas emissions,
failure to observe requirements to technological processes of equipment and
premises as to environmental control on
pollution by greenhouse gases in the course of the validity period of
the previous permit;

-

Failure to fulfill terms, set forth in the previous
permit.

The permit shall be annulled by the main (leading)
agency within the framework of central bodies of executive power on
environmental control, issuing the latter, as follows:

-

Submission of application by economic entity on
annulment of permit;

-

Adoption of decision on termination or liquidation of
economic entity;

-

If production process carried out by economic entity
can lead to grave consequences for the health of people and state of the
environment;

-

Repeated violation of terms, set forth in the permit.

The Cabinet of Ministers of Ukraine shall establish the order for
issuing permits on anthropogenic greenhouse gas emissions into the atmospheric
air by economic entities upon the presentation of the main (leading) agency
within the framework of central bodies
of executive power on environmental control.



Chapter IV

Observation, Collection, Processing, Transfer
and Safekeeping of Information,

Necessary for Assessment of Anthropogenic Emissions and Absorption
of

Greenhouse Gases

Article
13.
National
System for Assessment of Anthropogenic Emissions

and Absorption of Greenhouse Gases

A National System for Assessment of Anthropogenic Emissions and
Absorption of Greenhouse Gases is being set up for observing, collecting,
processing, transferring and safekeeping information, necessary for assessing anthropogenic
emissions and absorption of greenhouse gases and adoption of respective
managerial decisions. The National system shall include economic entities the
activity of which leads or can lead to anthropogenic emissions and absorption
of greenhouse gases.

The National System for Assessment of Anthropogenic Emissions and
Absorption of Greenhouse Gases envisages, as follows:

-

Assessment of data on anthropogenic emissions and
absorption of greenhouse gases;

-

Preparation of annual national cadastre on anthropogenic
emissions and absorption of greenhouse gases and national reports on climate
change, in conformity with requirements of the Kyoto Protocol;

-

Planning and carrying out of annual inventory of
anthropogenic emissions and absorption of greenhouse gases by economic
entities;

-

Compiling of annual national cadastre on anthropogenic
emissions and absorption of greenhouse gases and exercising control over
quality thereof;

-

Ensuring archive storage of information on annual
national cadastre on anthropogenic emissions and absorption of greenhouse gases
and materials thereon.

The functioning of the National System for
Assessment of Anthropogenic Emissions and Absorption of Greenhouse Gases shall
be ensured by the main (leading) agency within the framework of central bodies of executive power on
environmental control, central body of executive power on meeting requirements
of the UN Framework Convention on Climate Change and Kyoto Protocol mechanisms,
other empowered state agencies, as well as economic entities, which realize
emission of greenhouse gases and measures, aimed at absorption of greenhouse
gases.

Economic entities,
which have sources for the absorption of greenhouse gases, shall be
obliged to furnish, in the established order, necessary information free of
charge for carrying out inventory and compiling annual national cadastre on
anthropogenic emission and absorption of greenhouse gases to the main (leading)
agency within the framework of central
bodies of executive power on environmental control and central body of
executive power on meeting requirements of the UN Framework Convention on
Climate Change and introduction of Kyoto Protocol mechanisms.

The Cabinet of Ministers of Ukraine shall determine
the procedure for the functioning of the National System for Assessment of
Anthropogenic Emissions and Absorption of Greenhouse Gases.

Article 14.
Cadastre on Anthropogenic Emissions and Absorption of Greenhouse Gases

An annual National Cadastre on Anthropogenic
Emissions and Absorption of Greenhouse Gases shall be kept to register
quantitative,. qualitative and other characteristics of greenhouse gases,
absorption of greenhouse gases and control over its quality in the procedure,
determined in the established order by the main (leading) agency within the
framework of central bodies of executive power on environmental control.

Article 15. Control Over Emissions and Absorption of
Greenhouse Gases

Control shall be exercised over emissions and absorption of greenhouse
gases in order to meet the commitments of Ukraine under the UN Framework
Convention on Climate Change and Kyoto Protocol.

State control over emissions and absorption of greenhouse gases shall be
exercised by the main (leading) agency within the framework of bodies of
executive power on environmental control, its territorial divisions, central
body of executive power on meeting requirements of the UN Framework Convention
on Climate Change and introduction of Kyoto Protocol mechanisms, as well as
other specially empowered bodies of executive power.

Objects which realize anthropogenic emissions and absorption of
greenhouse gases shall be subject to state registration.

State registration of objects, which realize emissions and absorption of
greenhouse gases and state control over emissions and absorption of greenhouse
gases, shall be carried out in the procedure, established by the Cabinet of
Ministers.

Production control over anthropogenic emissions and absorption of
greenhouse gases shall be carried out by economic entities in the process of
their economic and other activity, if it leads to anthropogenic emissions and
absorption of greenhouse gases.

Monitoring of anthropogenic emissions and absorption of greenhouse gases
shall be carried out for the purpose of receiving, collecting, processing,
safekeeping and analyzing information on anthropogenic emissions and absorption
of greenhouse gases, assessment and prediction of their changes and elaboration
of scientifically substantiated recommendations for the adoption of decisions.

The Cabinet of Ministers of Ukraine
shall establish the procedure for organizing and conducting monitoring of
anthropogenic emissions and absorption of greenhouse gases.

Chapter V

Economic Mechanism for Ensuring Reduction of
Anthropogenic Emission

Volumes and
Increasing the Absorption of Greenhouse Gases

Article
16.
Economic
Mechanism for Ensuring Reduction of Anthropogenic Emission

Volumes and Increasing Absorption of Greenhouse Gases

The economic mechanism for ensuring reduction of
anthropogenic emission volumes and increasing absorption of greenhouse gases
envisages, as follows:

-

Trading, in the established procedure, by Ukraine with
other countries, parties to the Kyoto Protocol, or empowered residents by these
countries, in assigned amount units;

-

Realizing, in the established procedure, joint
implementation projects by economic entities with the participation of other
countries, parties to the Kyoto Protocol, or empowered residents by these
countries, with the purpose of reducing anthropogenic emissions and/or increasing
absorption of greenhouse gases;

-

Functioning of the market for reduction of greenhouse
gas emissions, which promotes the rational use of natural resources;

-

Transfering, in the established procedure, to another
country, or receiving therefrom emission reduction units, received as a result
of the implementation of projects, on reducing anthropogenic emissions from
sources and/or for increasing absorption of greenhouse gases, under conditions
set forth in the Kyoto Protocol;

-

Using certified reduction of anthropogenic greenhouse
gas emissions within framework of the clean development mechanism, in
conformity with provisions set forth in the Kyoto Protocol;

-

Establishing permits for economic entities on
anthropogenic greenhouse emissions into the natural environment;

-

Establishing norms for collection and size of fees and
fines for emission of anthropogenic greenhouse gases into the natural
environment;

-

Granting of taxation, credit and other privileges to
economic entities during introduction thereby of low-waste, energy- and resource-saving technologies and
nontraditional types of energy, protection and improvement of the quality of
absorbents of greenhouse gases, other efficient measures for reducing
anthropogenic emissions and increasing the absorption of greenhouse gases in
the procedure, established by the Cabinet of Ministers of Ukraine.

Article 17.
Market for
Reduction of Emissions of Greenhouse Gases

Introduced are derivatives of assigned amounts, which
are derivative securities, for the efficient functioning of the market for
reduction of emission of greenhouse gases, as financial mechanism for
stimulating an increase of ecological efficiency:

-

Certificate of reduced emissions of greenhouse gases – security, having nominal value of
emission reduction units, which testifies to the fact that reduction of
emissions was achieved, or absorption of greenhouse gases increased;

-

Shares of assigned amounts – security, having nominal value of
assigned amount units, which are a commitment to transfer respective nominal
units of assigned amounts of Ukraine to the bearer. Shares of assigned amounts are issued and circulated in
conformity with this law, international and (or) intergovernmental agreements;

-

Warrant on emissions of greenhouse gases – security, having nominal
value in tons equivalent of carbon dioxide, calculated according to potential of global warming,
which gives the holder the right to realize emissions of greenhouse gases in
the volume, which corresponds to the permit for greenhouse gas emissions.

The issuer of
derivatives of assigned amounts shall
be the central agency on meeting the requirements of the UN Framework
Convention on Climate Change and introduction of Kyoto Protocol mechanisms.

The issuance,
placement and circulation of derivatives of assigned amounts shall be carried
out in the procedure, established by the Cabinet of Ministers of Ukraine.

Expenditures for
the procurement of derivatives of assigned amounts for issuers shall be
included in the cost of products, works and services.

Article 18. Financing of Measures for Reduction of Anthropogenic Emissions

And Increasing
Absorption of Greenhouse Gases

The financing of measures for reduction of
anthropogenic emissions and increasing the absorption of greenhouse gases shall
be realized at the expense of the State Budget of Ukraine, Republican Budget of
the Autonomous Republic of Crimea and local budgets, revenues from the sale of assigned amount units of anthropogenic
emissions of greenhouse gases and fees and fines for environmental pollution by anthropogenic emissions of greenhouse
gases; resources of economic entities, including those received from the
implementation of projects, on reducing anthropogenic emissions and/or for
increasing absorption of greenhouse gases, environmental control funds;
voluntary preferential contributions and other revenues.

The incoming of
revenues from the sale of assigned amount units of anthropogenic emissions of
greenhouse gases, from fees and fines for environmental pollution by
anthropogenic emissions of greenhouse gases, voluntary preferential
contributions and other proceeds envisaged by legislation shall be accumulated
on special account within the framework of the State Budget. The administrator
of these revenues shall be the central body of executive power on meeting
requirements of the UN Framework Convention on Climate Change and introducing
Kyoto Protocol mechanisms, which provides their full scale targeted green
investments.

The distribution
of revenues for green investments shall be carried out by the main (leading)
agency within the framework of central
bodies of executive power on environmental control upon agreement with the
Cabinet of Ministers of Ukraine.

Chapter VI

Responsibility for Violation of Legislation
During

Anthropogenic Emission of Greenhouse Gases

Article 18. Responsibility for Violation of Legislation during
Anthropogenic

Emissions of Greenhouse Gases

Persons,
guilty of:

-

Violating human rights for safe environment for life and
health;

-

Exceeding anthropogenic emissions of greenhouse gases into the
atmospheric air;

-

Anthropogenic emissions of greenhouse gases without permit
from specially empowered bodies of executive power in conformity with law;

-

Exceeding anthropogenic emissions of greenhouse gases, set
forth in emission permits;

-

Failure to observe requirements, envisaged by permit for
anthropogenic emissions of greenhouse gases;

-

Conducting illegal activity, which has a negative impact on
the weather and climate;

-

Introducing discoveries, inventions, innovations, new technological
systems, substances and materials, as well as exploitation of technological
installations, transportation facilities and other objects procured in other
countries, which do not correspond to requirements, established by legislation
on environmental control;

-

Failure to fulfill instructions and notes of bodies, which
exercise state control over emissions and absorption of greenhouse gases;

-

Failure to timely submit complete and authentic information,
stipulated by legislation, on emissions and
absorption of greenhouse gases, sources of pollution, as well as
concealed or distorted data on the state of emissions and absorption of
greenhouse gases, ecological situation, which emerged as a result of greenhouse
gas emissions;

-

Nonobservance of ecological safety norms, state sanitary norms
during designing, placement, construction and exploitation of new and
modernized enterprises, premises and other objects, improvement of existing and
introduction and use of best up-to-date achievements of ecological friendly
technologies and installations, aimed at reducing anthropogenic emissions and
increasing absorption of greenhouse gases, shall bear responsibility in
conformity with law.

Responsibility
for other types of violations of legislation during anthropogenic emission of
greenhouse gases can also be established by laws.

Disputes on
issues related to the violation of legislation during anthropogenic emission of
greenhouse gases shall be decided in the order established by law.



Chapter VII

International Cooperation on Reduction of
Volumes of

Anthropogenic Emissions and Absorption of
Greenhouse Gases

Article 19. Application of International Treaties

Ukraine
takes part in international cooperation on reduction of anthropogenic emissions
of greenhouse gases and increasing absorption of greenhouse gases in conformity
with commitments of Ukraine under the UN Framework Convention on Climate
Change, the Kyoto Protocol to the UN Framework Convention on Climate Change and
legislation of Ukraine.

If
the Framework Convention, Kyoto Protocol or other International Agreement of
Ukraine, adopted as compulsory by the Verkhovna Rada of Ukraine, establishes
norms, other than those set forth in the present law, then the norms of
international treaties shall be applied.

Chapter VIII

Final Provisions

1.

This
Law shall come into force on the day of its publication.

2.

The
Cabinet of Ministers of Ukraine, in the course of three months from the day
this law comes into force, shall:

-

Forward proposals to the Verkhovna Rada of Ukraine on bringing
laws of Ukraine into conformity with the present law;

-

Bring its normative and legislative acts into conformity with
the present law;

-

Provide for the adoption of respective normative and
legislative acts in accordance to its competence, which emerge from the present
law;

-

Ensure that central bodies of executive power bring their
normative and legislative acts in conformity with the present law.

V. YUSCHENKO

President of Ukraine

Translated by N. Brezhko

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