This study presents a detailed analysisof the system of environmental expenditure in Ukraine with aparticular focus on public expenditures. It examines theextent to which the present system meets nationalenvironmental objectives and identifies ways in which it canbe improved and made more cost-effective. Sinceenvironmental spending is closely tied to sources ofenvironmental revenues (partly a result of earmarking andpartly because of the regulatory role that pollution chargesand fines play), this review also covers revenue issues. Thestudy is based on international systems of environmentalaccounting established by Organization for EconomicCooperation and Development (OECD).