Supporting an ambitious carbon tax reform in Ukraine

This study explores how reforming Ukraine’s carbon tax can support decarbonization, strengthen fiscal resilience, and advance alignment with EU climate policy. The analysis shows that a broader, fuel-based carbon tax with a gradually increasing rate could significantly reduce emissions while generating revenues to support social protection, energy efficiency, renewable energy, and industrial transformation.

The study was prepared by BE Berlin Economics GmbH for Ukrainian Climate Office, implemented by GIZ on behalf of the German Federal Ministry for Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) and co-financed by the European Union.