441-02410 (Business and trade)

The Government of Canada condemns Russia’s unprovoked and unjustifiable war of aggression against Ukraine in the strongest possible terms. Since 2022, the Government of Canada has committed over $14 billion in multifaceted assistance to Ukraine. Assistance is diverse and all-encompassing, including military, development, humanitarian, security and stabilization and financial assistance. Diplomatically, Canada has played a central role in supporting the six United Nations General Assembly resolutions denouncing the war as illegal and issuing statements and other actions across multiple multilateral organizations to hold Russia to account. Canada has also played a key leadership role across G7, G20, NATO, and other groupings, leading to an unsurpassed level of collective action and coordination.

Another form of Canadian support to Ukraine is through the modernized Canada-Ukraine Free Trade Agreement (CUFTA), a comprehensive, high-standard agreement that, once implemented, will strengthen the foundation on which Canadian and Ukrainian businesses can work together in the economic reconstruction of Ukraine.  The modernized CUFTA also includes an updated Environment Chapter that is focused on working on environment issues that are of mutual interest to Canadians and Ukrainians. This includes working together to support the important role that trade can play in addressing the threat of climate change.

To advance this work, the Environment Chapter includes an indicative list of possible areas of cooperation on climate change, including on carbon pricing, carbon leakage, and low emissions technologies. Activities can include dialogues, workshops, seminars, conferences, collaborative programmes and projects, training, best practices, and exchange of experts.

The modernized CUFTA does not include any provisions requiring either Canada or Ukraine to implement or impose a price on carbon. It is not about harmonizing policies or approaches and the Environment Chapter explicitly recognizes the sovereign right of each Party to establish its own levels of domestic environmental protection and priorities.

Ukraine has had a carbon price in place since 2011. It applies to CO2 emissions from stationary sources, mainly industry, power and building sectors and covers all types of fuels, including all fossil fuels. Ukraine’s parliament approved a carbon price rate increase, to start January 1, 2022, with up to 70% of the revenue to be used to reduce CO2 emissions and encourage decarbonization in certain sectors.