The State Of The Carbon Market In Ukraine In 2025

State Of The Carbon Market In Ukraine

Ukraine has been steadily integrating into the global carbon market as part of its broader commitment to sustainable development and EU climate policies.

In 2018, the country became one of the first ten nations to publish a Low-Carbon Development Strategy and set ambitious targets to reduce greenhouse gas emissions. Despite the disruptions caused by the Russian invasion, these goals remain a foundation for building a carbon market ^{(November, 2017). UKRAINE 2050 Low Emission Development Strategy}.

Key legislative advancements, such as the preparation for an Emissions Trading System (ETS), signal Ukraine’s intention to further align with international carbon standards. The ETS was adopted in the October 2024 “Law on the Basic Principles of Climate Policy” and is set to begin a pilot phase in 2026. Its aim is to establish a framework for trading carbon credits and regulating emissions ^{(November 06, 2024). Ukraine adopts law towards ETS adoption. International Carbon Acting Partnership.}.

On the ground, several Ukrainian companies have begun offering services as carbon project developers to help agrarians navigate the complex process of certification. These intermediaries assist farmers with data collection, compliance, and obtaining certifications under globally recognized methodologies like Verra and Gold Standard.

Notably, some success stories are already emerging. For example, the Ivan Franko Agricultural Enterprise managed to diversify its income by earning and selling carbon credits after the full-scale invasion of Ukraine ^{(February 29, 2024). Carbon credits - how to get more for what you do every day. Kurkul}.

Such examples demonstrate the potential of carbon markets to become a meaningful revenue stream for Ukrainian agrarians.

Large Enterprises Are Leading, Small Farmers Hesitate

While the idea of earning revenue from carbon credits is enticing, the reality for most Ukrainian farmers is more complex. Large agricultural enterprises have been the primary participants in carbon markets so far, while small and medium-sized farmers remain hesitant.

The main barrier is the significant upfront investment required to participate in carbon credit programs. Farmers must adopt new practices, such as reduced tillage, cover cropping, or adjustments to fertilizer use, all of which may involve additional costs and learning curves. For smaller farms with limited resources, these changes can seem risky, especially in a challenging economic and political environment.

Skepticism also plays a role. Many farmers worry that the practices required by methodologies like Verra and Gold Standard could initially reduce yields. Although research increasingly shows that regenerative agriculture improves soil health and productivity over time, the short-term uncertainty makes many farmers reluctant to commit.

In contrast, larger enterprises are better positioned to absorb these risks and costs. With access to capital and technical expertise, they can afford to invest in data collection, certification processes, and innovative farming practices. Their scale also allows them to benefit more significantly from the economies of participating in carbon projects.

This dynamic highlights the need for tailored support to make carbon markets more accessible to smaller farmers. Lowering entry barriers and providing clear guidance could help unlock the potential of these markets for a broader segment of Ukrainian agriculture.

The Process Of Obtaining Carbon Credits

Earning revenue from carbon credits involves a structured, multistep process that requires careful planning, compliance, and technical expertise. The concept is simple — farmers sequester carbon in their soil and receive credits to sell— but the journey to certification is far from straightforward.

The first step for farmers is selecting a methodology for measuring and verifying carbon sequestration. Globally recognized standards like Verra and Gold Standard provide guidelines for assessing soil carbon levels and implementing regenerative practices. Each methodology has its focus: Verra emphasizes increased carbon absorption, while Gold Standard integrates sustainable development goals alongside carbon sequestration ^{(July 5, 2023). Verra VCS vs. Gold Standard: Comparing Carbon Credit Standards. Carbonibus}.

Once a methodology is chosen, farmers must register their project and establish a baseline of soil carbon levels. This requires collecting historical data on farming practices, crop types, soil management, and other variables — often covering at least three years. Sampling and analyzing soil in a certified laboratory is a critical part of this phase, which provides the necessary data to determine initial carbon levels.

After registration, farmers need to implement or refine practices to enhance carbon sequestration. These may include:

• Introducing cover crops to improve soil organic matter
• Reducing tillage to minimize soil disturbance
• Adjusting fertilizer use to reduce emissions

Periodic monitoring and soil sampling are required to track progress and validate results. This is where the process often becomes cost-intensive, as soil analysis and third-party audits represent significant expenses for farmers.

Finally, after meeting the certification requirements, farmers receive carbon credits, which can be traded on carbon markets. Developers of carbon projects often assist in navigating these steps, acting as intermediaries between farmers, certifiers, and sometimes buyers.

Since the process is so rigorous, its potential rewards make it attractive for forward-thinking enterprises. However, for smaller farmers, the complexity of certification remains a significant barrier.

EOSDA’s Role In Supporting Ukrainian Farmers

One key challenge for farmers looking to participate in carbon markets is the high cost of soil sampling and laboratory analysis required for certification. So EOS Data Analytics is working on a carbon modeling approach that aims to reduce these costs by using satellite data and historical field information to estimate the amount of carbon sequestered in soil.

The model is specifically tuned to the territories requested by clients. In Ukraine, where EOSDA has extensive knowledge of local soil types and agricultural practices, the model’s application is particularly precise. By incorporating satellite imagery, weather patterns, and soil data, the model provides accurate predictions of soil organic carbon levels and minimizes the need for frequent physical sampling.

This approach simplifies one of the most resource-intensive steps in the certification process and makes onboarding more accessible for farmers and agricultural enterprises. While traditional sampling remains necessary for validation, the model reduces the frequency and cost of these efforts.

In a longer-term perspective, EOSDA believes that integrating carbon modeling into certification processes could further streamline the path to earning carbon credits, particularly for regions where soil data is well understood. In this way, the company contributes to making carbon markets a more viable option for Ukrainian agrarians.

Ukraine’s Potential In The Carbon Market

Ukraine’s agricultural sector is uniquely positioned to contribute to and benefit from the future global carbon market. With its extensive arable land, varied soil types, and ongoing efforts to align with EU climate standards, the country has the foundation needed to play a significant role in soil carbon sequestration initiatives.

The government’s Low-Carbon Development Strategy and plans for an Emissions Trading System reflect a commitment to building a framework for carbon market participation. However, much remains to be done to make these opportunities widely accessible to farmers. Simplifying certification processes and providing financial and technical support will be crucial steps in unlocking the full potential of Ukraine’s agrarians.

EOS Data Analytics envisions a future where satellite-based carbon modeling becomes an integral part of certification that reduces barriers for both small-scale and large-scale farmers. By cutting costs and making soil carbon assessments more efficient, this approach could help accelerate the adoption of regenerative practices across the country.

With the right combination of policy support, technological advancements, and farmer engagement, Ukraine has the potential to emerge as a leader in sustainable agriculture. As the global carbon market continues to evolve, the country’s participation could bring both economic and environmental benefits and pave the way for long-term agricultural resilience.