The Formation of Institutional Provision for Introduction of Internal Carbon Market of the Sector of Agricultural Land Use

The article is aimed at suggesting directions of formation of institutional support for introduction of the innovative financial-economic instrument of the internal carbon market (ICM) of the sector of agricultural land use and highlighting aspects of development of its legislative provision. The relevance of the suggested instrument is underlined by the necessity for Ukraine to fulfill the obligations under the Framework Convention on Climate Change of the UN, the Kyoto Protocol, the Paris Agreement, which are aimed at counteracting climate changes and adapting to their consequences. Through the use of the method of statistical analysis together with the analysis of dynamics of land-use categories in terms of farmlands, it has been proved that existing approaches to agricultural land use have a negative impact on the level of agri-ecological and food security of the State, lead to the loss of fertility and contribute to the increase of carbon emissions from the reservoir of mineral soils. The proposed approach forms the bases of further scientific and methodological developments for elaboration of the theoretical, normative-legislative, organizational and economic directions of development of the ICM of the sector of land use. The aspects of further improvement of legislation and of positive influence of ICM on the associated economic sectors are displayed.