Today air pollution in Ukraine’s cities is a major problem. The energy sector in Ukraine is a major contributor to local air pollution. According to the World Bank it’s responsible for 75 percent of emissions of sulphur dioxide (SO2), 50 percent of emissions of particulates, and 45 percent of nitrogen oxides (NOx) emissions. Ukraine’s energy sector also contributes about 70 percent of total domestic emissions of greenhouse gasses (GHGs). Today, although energy use is lower in part to policies encouraging energy conservation and energy efficiency, Ukraine’s economic woes account for much of the reduction. As the economy contracted through the 1990s, industrial production and consumer demand dropped as well, resulting in lower carbon dioxide emissions. Ukraine's recent economic growth has led to increases in both carbon dioxide emissions and energy consumption (see Fig 4).

In terms of energy consumption per unit of output, Ukraine has one of the highest levels of energy intensity in the world. In 2004, Ukraine used 0.5 tons of oil equivalent (toe) per $1,000 of GDP at purchasing power parity. This compares to the EU-15 average of 0.15 toe per $1,000 of GDP. Its consumption of natural gas as a percentage of its total energy consumption has also increased since 1992 and now represents over half of its energy usage. (see Fig. 1) The country's heavy dependence on coal makes it correspondingly high in carbon intensity, although Ukraine still generates over 50 percent of its electricity from nuclear sources. The government has made some progress and passed a bill to encourage alternative energy sector development through tax rebates for companies seeking to develop solar, geothermal and wind power projects. Former-President Kuchma signed the bill in 2001. Also, Ukraine is a member of the U.S.-led, international Methane to Markets Initiative that pledges to reduce global methane emissions.

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