As a member of the consortium led by DAI Global Austria GmbH & Co KG, KPMG Law Ukraine provided legal support to the Ministry of Environmental Protection and Natural Resources of Ukraine between July 2020–June 2024 in areas regarding air quality, waste management, and industrial pollution as per Annex XXX to Section 6 of the EU-Ukraine Association Agreement and other international commitments of Ukraine. The project was implemented with the support of the European Commission.
Project Goals
- Implement EU legislation on air quality.
- Implement EU legislation on waste and resource management.
- Continued assistance in developing environmental legislation.
Project description
KPMG Law Ukraine analysed the current legislation from both Ukraine and the EU, identified gaps, and provided recommendations for their elimination. KPMG also supported the drafting of laws, bylaws, and supporting materials, as well as organising consultations with businesses, the public, and relevant government authorities.
The key areas of work included the following:
- analysing the current Ukrainian and EU acquis in the areas of air quality, waste management, industrial pollution, etc.
- identifying gaps between effective Ukrainian legislation and the EU acquis
- providing recommendations on addressing such gaps and on drafting laws and regulations
- providing conclusions to the relevant stakeholders, receiving and taking feedback into account
- drafting environmental and environmental-related legislation to implement the relevant EU acquis
- supporting the legislative process in the government and parliament of Ukraine, including preparing supporting materials, rationales, etc.
- assessing the regulatory, economic, and financial impact of alignment with the EU acquis
- participating in working groups, parliamentary committee sessions, and workshops.
Key Challenges
- Multidisciplinary nature: experts from different domains (lawyers, ecologists, economists, financiers, managers, etc.) and jurisdictions were required to work on this project, which necessitated strategic thinking, efficient organisation and management of project teams, openness to new ideas, and willingness to propose and defend bold and non-standard solutions.
- Balance of interests: when drafting laws and other regulatory acts, it was necessary to take into account and reasonably and carefully balance the interests of businesses, the public, and the government, including finding common ground when such perspectives were not in alignment.
- Tight deadlines: developing and adopting such regulations came under a natural time constraint, and quick completion is another crucial and integral step to Ukraine’s EU accession process.
Project relevance
This goal of the initiative was to implement the environmental EU acquis in Ukraine and, accordingly, meet part of the conditions for Ukraine's accession to the EU.
Key achievements
As part of implementing the project, the KPMG Law Ukraine team participated in developing and supporting the adoption of the following draft laws and regulations:
1. Laws of Ukraine:
- “On the National Register of Pollutant Release and Transfer”
- draft Law “On Amendments to the Code of Ukraine on Administrative Offenses regarding Strengthening Liability for Violation of Legislative Requirements in the Area of Registration of Emissions and Transfer of Pollutants and Waste”
- draft Law “On Amendments to the Code of Ukraine on Administrative Offenses regarding Improving Liability for Offenses in the Area of Waste Management”
- draft Law “On the Management of Mining Industry Waste”
- draft Law “On Electrical and Electronic Equipment and Waste Electrical and Electronic Equipment”
- draft Law “On Amendments to the Tax Code of Ukraine Concerning the Environmental Tax Levied for Waste Disposal and Mining Waste Dumping”.
2. Resolutions of the Cabinet of Ministers of Ukraine:
- “On Approval of the Procedure for Establishment and Administration of the Waste Management Information System” dated 5 December 2023, No. 1279
- “On Approval of the Procedure for Maintaining the National Register of Pollutant Emissions and Transfer” dated 2 June 2023, No. 560
- “On Approval of the Procedure for Preparation and Publication of the Report of the Authorised Body on Emissions and Transfer of Pollutants and Waste” dated 18 April 2023, No. 352
- “Certain Issues of Classification of Substances or Items as By-Products” dated 17 November 2023, No. 1214
- “Certain Issues of Declaring the Termination of Waste Status” dated 8 August 2023, No.827
- draft resolution “Certain Issues of Identification of and Accounting for Waste with No Owner Identified”.
3. Orders of the Ministry of Environmental Protection and Natural Resources of Ukraine:
- draft order “Rules for the Technical Operation of Landfills, Termination of Operation, Reclamation and Care of Landfills after Termination of Operation”
- draft order “Certain Issues of Operation of Waste Incineration Plants and Co-Combustion Plants”
- draft order “On Approval of the Procedure for State Waste Accounting and Reporting and Approval of the Standard Form for Waste Accounting”.
Project Team
The KPMG Law Ukraine team includes leading experts in environmental, nature protection, and regulatory law, as well as specialists in the transposition of the EU acquis into Ukrainian law, including: Yuriy Katser, Bohdan Shyshkovskyi, Ivan Demtso, Dmytro Savchuk, and Natalia Kovalchuk.
Deliverables
The project offers a clear example of the effective cooperation between the government of Ukraine, international partners, businesses, and KPMG Law Ukraine. Not only did it help adapt Ukrainian legislation to align with EU standards, it also laid the foundation for future environmental initiatives.
The harmonisation of Ukrainian legislation with EU law is critical for both integration into the European community and strengthening the credibility of Ukraine among international investors. Within the framework of the project, we went beyond simply adapting national rules to meet European standards: we laid the legal groundwork for Ukraine’s sustainable development in the future. According to the latest survey by KPMG in Ukraine, 60% of CEOs in Ukraine and 34% globally consider ESG to be a key factor in customer relations. This clearly indicates a global trend: businesses are ready to integrate environmental, social, and governance components into their operations, and they see such integration as an essential advantage for attracting investment and strengthening their position on international markets. This project demonstrates Ukraine's readiness to lead the way at the forefront of this trend. It can be clearly seen that Ukraine is taking real steps towards a sustainable future by both raising environmental standards and opening up new opportunities for the economy and for business.
