Market instruments of carbon pricing for the waste management sector

The article is devoted to generalization and refinement of theoretical aspects of carbon pricing in Ukraine in the conditions of low carbon development of economy. A comparative analysis of two market carbon pricing instruments such as carbon tax and the greenhouse gas emission trading system is made. The basic principles of setting the price for greenhouse gas emissions are determined. The draft legislation of Ukraine on the introduction of a trading system for emissions of greenhouse gases and monitoring system, reporting and verification of emissions, possibilities for application in various sectors of the economy, including the waste management sector, are analyzed. The problem of waste in Ukraine is particularly large and significant as a result of the dominance of resource-intensive multifocal technologies in the national economy, and due to the lack of adequate response to its challenges for a long time. The energy and raw material specialization of the national economy together with the outdated technological base determined and continues to determine high indicators of the formation and accumulation of waste. One of the reasons for inefficient waste management in Ukraine is a low fee for the municipal solid waste disposal to landfills, which complicates competition for other waste treatment services providers.
Taking into account the results of the research, which was based on the investigated current state of the waste management sector in Ukraine and the contribution of the sector to Ukraine's total greenhouse gas emissions (especially municipal solid waste disposal sites methane input), the need for a monitoring, reporting and verification of greenhouse gas emissions system in the field of waste management establishing and the use of such a market-based instrument for setting the price of emissions as a carbon tax, which in a certain form is included in the fee (tariff) for unprocessed waste disposal at landfills ensuring is determined. This will stimulate investment activities for the development of other methods of waste treatment, reduction of the carbon footprint for many goods at the stage of their lifetime and the low carbon development of the waste sector in general.