The European Commission is considering the possibility of postponing the implementation of the Carbon Border Adjustment Mechanism (CBAM) for Ukraine, which was set to take effect next year. This move could provide significant support for the Ukrainian industry, which is already in a challenging economic situation.
This is reported by Finway
Impact of CBAM on Key Sectors in Ukraine
The introduction of a CO2 emissions tax in the form of CBAM could pose a serious burden for Ukrainian manufacturers. The sectors most at risk of suffering losses include metallurgy, energy, chemicals, and fertilizer production. The situation is particularly critical for the cement industry, which faces a potential collapse due to additional financial costs.
“CBAM aims to level the playing field between European producers and importers from other countries. It could become a significant additional burden for an already severely weakened Ukrainian economy,” the publication states.
Possible Postponement and the Position of the European Commission
The European Commission acknowledges the potential difficulties for Ukraine and is prepared to delay the full implementation of CBAM until February 1, 2027. This possibility is provided for in the CBAM Regulation, which allows for exceptions in cases of force majeure. However, an official request from the Ukrainian side is necessary, and as of now, such a request has not yet been submitted.
Currently, the Cabinet of Ministers of Ukraine is preparing the necessary documents to officially address the European Commission regarding the postponement of the tax implementation. The exact date for submitting the request has not yet been determined.