Ukraine adopts EU standards with new regulation of industrial pollution

On 16 July 2024, the Ukrainian Parliament adopted the Law of Ukraine No. 3855-IX “On Integrated Prevention and Control of Industrial Pollution” (Law) as part of Ukraine`s commitments under the Association Agreement with the EU. The Law introduces integrated approach to permitting procedures and the control of industrial pollution based on the application of the Best Available Techniques (BAT) and management methods in accordance with EU Directive 2010/75/EU of 24 November 2010 on industrial emissions (i.e. integrated pollution prevention and control) (Directive 2010/75/EU).

On 8 August 2025, the Law entered into full force and effect, introducing fundamental changes to the permitting system in the field of environmental protection. Pursuant to its Article 2, the Law governs relations in the sphere of prevention, reduction and control of pollution arising from the types of activities specified therein[1].

Consequently, large industrial polluters operating heavy metal installations[2] in the energy, mineral and metal processing, chemical, and other sectors expressly defined by the Law fall within its scope. A full list of the sectors in which the operations of large industrial polluters require an Integrated Environmental Permit is set out below in Picture 1: Sectors requiring the obtaining of an Integrated Environmental Permit. Companies in these sectors are required to comply with the Law’s provisions, including the obligation to obtain this Integrated Environmental Permit.

Picture 1. Sectors requiring the Obtaining of an Integrated Environmental Permit

The entry into force of the Law effectively marks the launch of a new environmental permitting system in Ukraine, which, inter alia, introduces a number of positive developments, as outlined in Picture 2. Impact of new environmental permitting system in Ukraine.

Picture 2. Impact of new environmental permitting system in Ukraine

For the Ukrainian market, the Law will be significant because it creates clearer and more predictable rules in the field of environmental protection, reduces administrative burdens, stimulates modernisation of industrial facilities, and opens opportunities for investment and international cooperation through the alignment of Ukraine regulation with EU environmental standards.

New approach to pollution control and the newly adopted integrated environmental permit

The primary purpose of the Law is to safeguard the environment and to ensure the constitutional right of citizens to a safe living environment and health. This objective is to be achieved through the introduction of an Integrated Environmental Permit[3] (a single comprehensive permit) for Operators of installations[4] carrying out activities in the sectors provided in Picture 1. Sectors requiring the Obtaining of an Integrated Environmental Permit above.

Operators of installations carrying out activities in the sectors specified by the Law are required to obtain an Integrated Environmental Permit before commencing their operations, except in certain cases during the transitional period (for more information on these cases, refer to Table 1. Essential terms and pre-conditions of the Integrated Environmental Permit below). Before the Law entered into force, Operators of installations engaged in pollution-causing activities were required to obtain three separate permits. As shown in Picture 3. New Approach to the environmental permitting system, the Law allows Operators of installations to obtain only a single permit instead of separate environmental permits.

Picture 3. New Approach to the environmental permitting system.

The Integrated Environmental Permit consolidates the requirements for all types of environmental impact by the facility: air emissions; discharges into water; waste management; and others.

At the same time, Operators of installations holding the environmental permits (i.e. permits for special water use, atmospheric emissions and waste management) must obtain the Integrated Environmental Permit no later than four years[5] from the date the Law enters into force (i.e., by 8 August 2029)[6]. In practice, this means that starting from 8 August 2029 all previously issued environmental permits will be invalid. Hence, Operators of Installations without Integrated Environmental Permits will not be able to carry out activities related to the air emissions, special water use and waste management.

In Table 1. Essential terms and pre-conditions for the issuance of the Integrated Environmental Permit below, we have outlined the key conditions of the Integrated Environmental Permit.

Since obtaining an Integrated Environmental Permit is a complex procedure requiring preliminary steps (e.g. conducting an environmental impact assessment) and public consultations, enterprises should begin the process early. For a detailed overview of the procedure, refer to Picture 4. Issuance procedure for Integrated Environmental Permits.

Picture 4. Issuance procedure for Integrated Environmental Permits.

Source: Ministry of Environmental Protection and Natural Resources of Ukraine

Introduction of Public Consultation as a Mandatory Stage for Issuing the Integrated Environmental Permit

The Law establishes mandatory public consultation as a required step for obtaining the Integrated Environmental Permit, which collects and considers the public’s comments and suggestions. Public consultation is conducted in parallel by both the Permitting Authority and the Operator of the installation seeking to obtain the Integrated Environmental Permit. Each carries out the construction independently according to separately defined procedures established by Law.

According to Article 6 of the Law, within 15 working days from the receipt of the decision (i.e. conclusion) on the acceptability of the application for the Integrated Environmental Permit, the Operator of installation must announce the start of the public consultation by:

• Publishing the announcement on its website (if available);
• Posting it in at least three public locations in all settlements that may be affected by the installation’s activities.

During the period of the public consultation, the Operator of installation must ensure that the announcement remains publicly accessible. Based on the results of the public consultation, the Permitting Authority reviews the submitted documents, conclusions, and proposals from competent state authorities. Based on the results of the public consultation, the Permitting Authority either issues the Integrated Environmental Permit or refuses its issuance.

Main obligations of the Operator of installation

Once the Operator of installation obtains an Integrated Environmental Permit, it becomes subject to the special obligations set forth in the Law. According to Article 16 (1) of the Law, the Operator of installation is obliged to:

• Take measures to prevent pollution;
• Apply the BAT and management methods;
• Avoid causing pollution that would violate environmental, state sanitary, or public health standards and regulations;
• Prevent the generation of waste;
• In case waste is generated, prioritise its preparation for reuse, recycling, or recovery, and if technically or economically unfeasible, dispose of it while avoiding or minimising any negative impact on the environment;
• Use energy rationally;
• Take measures to prevent accidents and minimise their consequences;
• Upon decommissioning the installation or cessation of use of the industrial site or any part of it, take measures to avoid contamination and restore the industrial site to a condition that meets the requirements defined in Article 25 of the Law.

Since the above obligations are formulated rather broadly, we expect that corresponding regulatory legal acts will be developed in the near future to provide further details on their content.

To fulfil these obligations, the Operator of installation must establish an environmental protection department within the enterprise and define its functions.

Additionally, pursuant to Article 17 of the Law, no later than 31 March of the year following the reporting year, the Operator of installation must submit a report to the Permitting Authority on compliance with the conditions of the Integrated Environmental Permit.

Obligations of Operators of installations to notify the Permitting Authority about changes to the information specified in the Integrated Environmental Permits and to amend it

According to Article 21 of the Law, the Operator of installation must inform the Permitting Authority of any planned changes in the nature or operation of the installation, or of its expansion.

Upon receiving an information from the Operator of installation, the Permitting Authority assesses whether the planned changes in the nature or operation of the installation require amendments to the Integrated Environmental Permit. If the planned changes are such that amendments are required, the authority must notify the operator via the Unified State Register of Integrated Environmental Permits within 20 working days of receiving this information. The notification must include the rationale for the required amendments.

In such cases, the operator must submit an application to the Permitting Authority for the Integrated Environmental Permit in accordance with the procedure established by the Law.

Criteria for Determining BAT and Management Methods

The Law also introduces a requirement for installations to comply with the criteria for determining the BAT and management methods.[10] This requirement is already a standard practice within the EU and is enshrined in the provisions of the Directive 2010/75/EU.

According to Article 12 of the Law, when assessing the compliance of technologies and management methods applied at an installation, both the Operator of installation and the Permitting Authority shall be guided by the following criteria:

• Application of low-waste technologies;
• Use of less hazardous substances;
• Recovery and recycling of substances generated and used in the production process, as well as waste treatment;
• Comparable processes, technical means, and operational methods successfully tested on an industrial scale;
• Technological progress and advances in scientific knowledge and understanding;
• Nature, impact, and volume of emissions; etc.

To summarise, to obtain an Integrated Environmental Permit, new installations must comply with BAT conclusions from the date the BAT criteria enter into force. For existing installations, the requirement to comply with BAT is deferred one year from the date of termination or lifting of martial law.

At the same time, the Law provides for certain cases in which installations may be exempt from meeting the aforementioned BAT`s criteria. For this purpose, the Law introduces, for the first time, the concept of a derogation (i.e. the temporary application of less stringent standards in an Integrated Environmental Permit) under specific conditions.

A derogation may be granted in the following cases:

• when obtaining an Integrated Environmental Permit for the first time by existing installations; or
• when updating the conditions of an existing Integrated Environmental Permit.

Such derogation may be granted solely for the period required to implement the specific measures set out in the conditions of the Integrated Environmental Permit. The duration of a derogation may not exceed seven years from the date of application of the relevant BAT conclusions, and this period cannot be extended. The Law also specifies cases in which a derogation may not be granted.

According to Article 13 (2) of the Law, derogations are not available to newly commissioned installations. All installations commissioned after 8 August 2025 must fully comply with the applicable BAT conclusions, provided these conclusions have been adopted for the relevant type of activity.

Conclusion

The adoption of the Law marks a turning point in Ukraine’s environmental policy. By introducing the Integrated Environmental Permit, aligning requirements with EU Directive 2010/75/EU, and embedding the principle of BAT, Ukraine has taken a decisive step toward modern, transparent, and predictable environmental governance.

The reform balances environmental protection with industrial development. It creates incentives for modernisation, reduces administrative complexity, and ensures public participation in environmental decision-making. In the long term, this framework will not only improve environmental quality and public health in Ukraine but also strengthen the country’s position in European and international markets as a reliable and sustainable industrial partner.

For more information on environmental protection and natural resources policies in Ukraine, contact your client partner or one of these experts: Vitaliy Radchenko, Maryna Ilchuk,

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[1] Most of the BAT criteria are currently being translated into Ukrainian and will be officially adopted in Ukraine in the near future.

[2] Operators of existing installations shall submit an application for obtaining an Integrated Environmental Permit within three years from the date of entry into force of this Law, i.e., by 8 August 2028.

[3] The issuance of an Integrated Environmental Permit results in the automatic termination of all other environmental permits previously granted to the operator

[4] A fee is charged for the issuance of an Integrated Environmental Permit in the amount of 30 subsistence minimums for able-bodied persons, established by law as of 1 January of the calendar year in which the application is submitted.

[5] The form and content of the application are defined by the Resolution of the Cabinet of Ministers of Ukraine No. 708 “Requirements for the Form and Content of the Application for Obtaining an Integrated Environmental Permit (or its amendment)” dated 2 July 2025.

[6] In practice, the payment and publication of information regarding the conduct of public consultations mark the commencement of the administrative procedure for obtaining an Integrated Environmental Permit.

[7] According to Article 1 of the Law, an Integrated Environmental Permit is an authorising document in the field of environmental protection, issued by the competent Permitting Authority, which grants the right to carry out activities related to the operation of installations, namely the types of activities defined by the Annex of the Law, under the conditions specified therein.

[8] According to Article 1 of the Law, an Operator of an installation is a legal entity that carries out, or intends to carry out, the technical operation of an installation that is in its ownership, trust ownership, operational management, economic jurisdiction, or use.

[9] This Law does not apply to pilot production or to the testing of new products and processes.

[10] According to article 1 of the Law, an installation means a stationary technical unit (facility) in which one or more types of activities specified by the Law are carried out, as well as any other directly associated activities on the same industrial site that have a technical connection with the activities defined by the Law and may affect emissions and pollution.