Olha Semkiv, Director of Sustainable Development at ArcelorMittal Kryvyi Rih, said that the introduction of a greenhouse gas emissions trading system (ETS) in Ukraine would not be beneficial for the economy.
After all, the introduction of the ETS could reduce competitiveness in other markets where there are no mechanisms for carbon adjustment of imports, Delo.ua reports.
She spoke about this at the EBA webinar "CBAM: What Business Needs to Know", emphasizing that not all Ukrainian goods are subject to the European carbon import adjustment mechanism CBAM.
As you know, CBAM provides for the payment of the difference between local and European carbon prices. The Ministry of Environmental Protection and Natural Resources plans to launch the ETS in a pilot mode in 2025 and in full in 2026.
It is noted that in October 2023, the first phase of CBAM implementation began, which provides only for reporting on the carbon footprint of goods imported into the EU. Starting in 2026, companies must obtain CBAM certificates for their products. In addition to importers, CBAM also applies to European manufacturers that use raw materials from third countries.
A number of importers are currently experiencing difficulties with their first CBAM reporting due to technical issues. The EU even extended the deadline for submitting the first report by 30 days, that is, from January 31 to March 1, and will probably extend it for another month. In addition, in Ukraine there is no state methodical support for companies and even an official translation of CBAM requirements.
"In recent years, we can state that Ukrainian exporters are left to their own devices. Regarding CBAM, the government does nothing. Although a working group was created under the chairmanship of [Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine] Olga Stefanishina, but this group has never sat," said Stanislav Zinchenko, director of the HMC Center analytical center.
In his opinion, Ukraine needs to introduce its own CBAM to ensure that domestic producers remain in a competitive environment. He also called for preparations for the fact that the United States, the United Kingdom, and Latin American countries will introduce their carbon adjustment mechanisms starting in 2026.
Earlier, EcoPolitic wrote, that Vladyslav Antipov, head of the Center for Ecology and Development of New Technologies, warned that the European carbon adjustment mechanism for CBAM imports could create additional costs for traditional steel products of up to €100 per ton.
As EcoPolitic previously reported, according to the European Business Association, in the context of a full-scale war in Ukraine, the introduction of the European carbon adjustment mechanism (CBAM) will be an excessive financial burden for the Ukrainian economy.
