On 25 September, the World Trade Organisation (WTO) approved Russia’s second request and set up an expert group to examine the issue of the Carbon Border Adjustment Mechanism (CBAM).
PoliticoPRO reports this in its newsletter.
Back in 2025, the Kremlin claimed that the bloc’s carbon levy and the general emissions trading scheme unfairly protected European heavy industry — in particular the steel industry, which had once been a key sector for Russian exports to the EU. At the time, Russia lodged a complaint with the WTO, arguing that the legislation on the CBAM “appears to nullify or impair” the EU’s trade obligations.
It was also backed by other WTO members — China, India, Brazil and Indonesia. They, too, expressed concern about the protectionist nature of this mechanism.
According to the publication, three new scenarios have emerged. The WTO may:
- to pass a resolution that will force the EU to adjust its carbon emissions market;
- will reject the Russian Federation’s claims in their entirety;
- to agree on a combined solution that may incorporate elements of both options.
Politico reporter Benjamin Makuch has seen an internal briefing document that the EU executive sent to member states and political groups regarding this dispute. In it, the European Commission set out its firm stance.
"The aim of dispute settlement within the WTO is to ensure favourable rulings on trade disputes. However, as long as Russia continues to wage its aggressive war against Ukraine, it should not expect to be able to use WTO rules to improve market access for its exports to the EU," the statement reads.
In the editorial team’s view, this document reflects the EU’s optimistic outlook regarding the outcome of the dispute.
"The EU is confident that the CBAM complies with WTO rules and is prepared to defend the scheme," the document states.
The European Commission also emphasised that it would cooperate exclusively with the expert group and would not enter into any negotiations with Russia in the context of these procedures.
The publication’s legal experts suggest that the European Union will defend the CBAM partly on the basis of the WTO’s ‘General Exceptions’, which, under certain circumstances, permit measures that would otherwise contravene WTO rules, in particular those that are “necessary to protect human, animal or plant life or health” or relate to the “conservation of exhaustible natural resources”.
As previously reported by EcoPolitics, the European Parliament has extended the scope of the CBAM to cover derivative products, thereby closing loopholes that allowed the rules to be circumvented.
It has also emerged that the Greek company EmiCert has become the first accredited verifier for verifying embedded emissions under the CBAM.
