EBA supports steps taken by parliamentarians to postpone the CBAM

EBA supports steps taken by parliamentarians to postpone the CBAM shutterstock
Hanna Velyka

Leading Ukrainian industry associations are massively appealing to the government and the prime minister to urgently submit an official request from Ukraine

The Verkhovna Rada Committee on Economic Development has called on the Cabinet of Ministers of Ukraine to take the necessary steps to initiate a postponement of the carbon border adjustment mechanism (CBAM) for Ukraine before the European Commission.

This was reported by the European Business Association (EBA).

In particular, the MPs propose that such a postponement should be applied for the period until the end of the war and for another 5 years after its end.

Business representatives highly appreciated this position of the parliamentarians, as it takes into account the difficult conditions of the domestic industry in a full-scale war, as well as the need to ensure the competitiveness of Ukrainian exporters in the European Union market.

The EBA expressed hope for further joint and coordinated work of business, the Verkhovna Rada and the government to protect the interests of Ukraine's economy and effective integration of our country into the EU climate regulation, taking into account the realities of wartime.

As a reminder, the CBAM (Carbon Border Adjustment Mechanism) provides for additional fees for companies importing goods with a high carbon footprint into the EU. This mechanism covers producers of iron and steel, cement, aluminum, fertilizers, and electricity. The EU aims to level the playing field between European producers paying high carbon taxes and companies outside the EU.

Currently, CBAM is operating in a limited format, and the full implementation of the mechanism is expected to start on January 1, 2026. It will require importers to purchase CBAM carbon certificates, which will cover the difference in carbon emissions, to continue supplying goods to the EU.

Earlier, EcoPolitics cited expert Lyudmyla Tsyhanok's explanation of why it is vital for Ukraine to get a delay from CBAM. We also reported that, according to the Ministry of Environmental Protection and Natural Resources of Ukraine, the EU may postpone the full CBAM for Ukraine until 2027.

Later, it became known that the Ministry of Economy of Ukraine is preparing an official appeal to the European Commission with a request to start official negotiations on postponing the carbon adjustment mechanism for imports for Ukraine.

EcoPolitics also analyzed whether Ukraine has actually made progress in postponing the carbon duty or whether it is just wishful thinking on the part of the Ministry of Environmental Protection and Natural Resources of Ukraine.

Related
The Government approved amendments to the State Decarbonization Fund
The Government approved amendments to the State Decarbonization Fund

Financing will become more accessible to communities, authorities and businesses

The Government adopted Resolution No. 1212 on environmental control
The Government adopted Resolution No. 1212 on environmental control

The project will be implemented during the period of martial law, but no longer than 6 months from the date of entry into force of the resolution

The Cabinet of Ministers adopted a resolution on real-time monitoring of emissions
The Cabinet of Ministers adopted a resolution on real-time monitoring of emissions

The solution will facilitate environmental control and fulfillment of international obligations

Cabinet approves a number of important decisions for Ukraine's European integration, – Svyrydenko
Cabinet approves a number of important decisions for Ukraine's European integration, – Svyrydenko

Ukrainians will be provided with information on car emissions in car dealerships