This is the final report prepared by the consultants of DIW ECON in the frame of the on-going project on development of a low carbon growth strategy for Ukraine. The project was commissioned by UNDP and is funded under the international climate change initiative of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. The project is jointly implemented by DIW ECON and Thompson Reuters. The beneficiaries of the consulting services are the State Environmental Investment Agency (SEIA) of Ukraine and the Government of Ukraine.

The project aims to strengthen the institutional capacity of Ukraine to design and implement long-term policies and measures directed at reducing emissions of greenhouse gases and enhancing absorption by sinks. In particular the project will support the Government of Ukraine in developing a low emission pathway for Ukraine’s long-term economic development.

To this effect the project aimed to:

1. Develop new generation GHG models and comprehensive projections of GHG emissions;
2. Prepare an enabling environment for the introduction of a domestic emissions trading scheme in Ukraine;
3. Improve the measurement, reporting and verification of greenhouse gas emissions;
4. Prepare the concept of Ukraine's low carbon growth strategy until 2020 and 2050;
5. Strengthen the institutional capacity to implement climate change policies in Ukraine.

The final project report by DIW ECON summarizes the work done in order to reach these goals.