EU may postpone full-fledged CBAM for Ukraine until 2027 – Ministry of Environment

EU may postpone full-fledged CBAM for Ukraine until 2027 – Ministry of Environment shutterstock
Hanna Velyka

But this will not happen without an official appeal from our country to our European partners.

According to the Ministry of Environmental Protection and Natural Resources of Ukraine, the European Commission has proposed to postpone the full implementation of the carbon import adjustment mechanism (CBAM) for Ukraine until February 1, 2027.

The agency stated this in its response to the Energy Club's appeal regarding the threatening economic consequences of the introduction of the CBAM for the Ukrainian energy sector and the economy as a whole.

The ministry also said that Ukraine's representatives had repeatedly raised the issue of postponing the CBAM for Ukraine during meetings with representatives of the European Commission.

According to the Ministry's response, this issue was discussed with representatives of the European Commission's Directorate-General for Climate Change and the European Commission's Directorate-General for Taxation and Customs Union.

Why you shouldn't start rejoicing

In this situation, the information provided by the Ministry on the state of affairs regarding the introduction of the carbon adjustment mechanism for imports should be very critically assessed. EcoPolitic previously analyzed the results presented by the Ministry of Ecology as Ukraine's progress in the CBAM. It turned out that the European Commission had not even received an official request for a delay from Ukraine. And this is despite the fact that the Cabinet of Ministers of Ukraine formed a working group to agree on an approach to the carbon adjustment mechanism for imports and hold relevant consultations with European officials back in 2021!

As a reminder, the EU has a procedure according to which a country that wants to receive a deferral from the CBAM must apply to the European Commission with a request to invoke the application of Article 30.7. The Commission then assesses the situation and submits a report to the European Parliament and Council, accompanied by a legislative proposal to address these exceptional circumstances.

It follows that the highest European legislative and executive bodies cannot take any legally binding decisions without a corresponding request from the Ukrainian authorities. And our authorities are still silent.

There are 7.5 months left until the CBAM is fully implemented.

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