The European Union is considering the possibility of delaying the full implementation of the Carbon Border Adjustment Mechanism (CBAM) for Ukraine. This initiative is being discussed in response to a request from Kyiv, which is concerned about the potential negative impacts on key sectors of the Ukrainian industry.
This is reported by Business • Media
Which Sectors Are Most at Risk
The implementation of CBAM, which entails a CO2 emissions tax for imports to the EU, could create significant difficulties for Ukraine’s metallurgy sector, fertilizer production, energy, and chemical industries. The cement industry remains particularly vulnerable, facing the risk of actual production stoppages due to additional financial burdens.
“CBAM aims to level the playing field between European producers and importers from other countries. It could become a significant additional burden for an already severely weakened Ukrainian economy,” the publication notes.
Postponement Possible Upon Official Request
The European Commission acknowledges the risks to the Ukrainian economy and shows a willingness to postpone the full implementation of CBAM for Ukraine until February 1, 2027. For this to happen, the Ukrainian government must submit an official request in accordance with the provisions of the CBAM Regulation, which allows for exceptions for countries in force majeure circumstances. As of now, such a request has not yet been submitted, but the Cabinet of Ministers is preparing the necessary documentation. When this request will be submitted is currently unknown.