Through the EU Association Agreement and EU candidate status, Ukraine is obliged to introduce an EU Emissions Trading Scheme (ETS). The ambition to rapidly implement EU directives including the ETS is increasing. At the national level, the project promotes the development of administrative structures and capacities. It supports partners in establishing a basis for setting the emissions cap (emissions scenarios). The competent authority will be enabled to carry out the verification of emission reports of installations subject to ETS. The project promotes the development of procedures for emission allowances. The IT system will be further developed and integrated into the e-governance structures of Ukraine. An ETS pilot phase enables installation operators, verifiers, authorities and environmental inspectorates to apply their knowledge. Capacity is built in the private sector for monitoring plans and emissions reporting. The ETS creates a “level playing field” with the EU internal market.