Ukrainian industrialists held direct talks with representatives of the European Commission on key climate policies — the launch of the future National Emissions Trading Scheme and the actual impact of the European Carbon Border Adjustment Mechanism (CBAM) on Ukrainian industry.
According to information from the Ukrainian Employers’ Federation, these topics were the main focus of the round-table discussion entitled ‘Ukraine and the carbon market: are we ready for the launch of the National Carbon Trading System (NETS) and how will this affect the application of the Carbon Border Adjustment Mechanism (CBAM) to Ukrainian goods?’.
National carbon market
Preparations for the introduction of a national carbon market are underway at various levels in Ukraine. The event focused on the extent to which Ukrainian industry is ready for this, and the decarbonisation challenges facing Ukraine, particularly in the context of integration into the European carbon market.
The NETS could become an additional burden for industry alongside the CBAM, which is why the link between these instruments was discussed at the event.
"This is not just about meeting the EU’s climate requirements, but also about finding practical solutions that will make it possible to combine the decarbonisation of the economy with the modernisation of industry, take into account the consequences of the war and maintain the competitiveness of Ukrainian businesses," the FRU emphasised.
Legislation relating to the NETS
As previously reported by EcoPolitics, there are four draft laws concerning the Ukrainian ETS. You can read about their differences and the risks involved in this article.
For its part, the FRU endorsed document No. 15386-2, drafted by Oleg Bondarenko, a Member of Parliament and Chair of the Verkhovna Rada Committee on Environmental Policy and Nature Management.
The community emphasised that the future system should not simply replicate the European model for the sake of compatibility. It must take into account the realities of the Ukrainian economy during wartime — with sufficient transition periods, clear and transparent commitments, and effective mechanisms to support industrial decarbonisation.
Postponement of the CBAM
The carbon ‘levy’ on exports to the EU has dealt a further blow to Ukrainian industry, so it was no surprise that the issue of introducing a special regime for Ukraine was raised at the round-table discussion.
Thomas Gerasimos, Director-General of the European Commission’s Directorate-General for Taxation and the Customs Union (DG TAXUD), noted that Ukraine had taken a creative approach to the issue of verifying emissions figures. At the same time, he emphasised that a number of issues remain unresolved. One of the key issues is the possibility of applying a special regime for Ukraine.
According to the FRU, he proposed continuing cooperation on possible future support for businesses in their decarbonisation efforts.
"This lays the groundwork for further substantive work on solutions that will help Ukrainian producers adapt to new climate requirements, plan for modernisation and maintain their competitive position in the European market," the Federation said.
Earlier, the Minister for the Economy and the Environment, Oleksandr Kravchenko, reported that the European Parliament had provisionally backed the possibility of applying special CBAM measures for Ukraine. However, the final decision still depends on negotiations between the European Parliament, the Council of the EU and the European Commission.
Previously, the European Parliament extended the scope of the mechanism to cover derivative products — from cables to household goods.
As a reminder, the CBAM operates as a form of carbon levy on products such as steel, aluminium, cement, hydrogen, fertilisers and electricity. Importers must pay the EU for the embedded greenhouse gas emissions generated during the production of these goods.
The scheme comes into effect on 1 January 2026.
