The European Commission made a mistake in calculations when implementing the Carbon Border Adjustment Mechanism (CBAM) for Ukraine, which is set to come into effect on January 1, 2026. This issue was confirmed by the results of the first quarter of 2026, and negotiations are currently underway at the level of the European Commission to rectify it.
This is reported by Finway
Export losses and the need to revise CBAM
This situation was raised by the Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine, Taras Kachka, during the Third Ukraine-EU Business Summit held in Brussels on April 22-23. According to him, the parties are actively seeking a compromise solution that can satisfy the European Commission while taking into account Ukraine’s interests.
“This is what we are discussing (with the European Commission). I believe we will find a solution that will satisfy the Commission,” he said.
The Minister of Economy, Environment, and Agriculture, Oleksiy Sobolev, noted that due to the objective impossibility of verifying emissions during the war, Ukraine lost a significant portion of its metallurgical product export volumes in the first quarter of 2026. Losses in specific sectors ranged from 17% to 93%.
Finding solutions for Ukrainian businesses
According to Sobolev, an agreement has been reached with the European Commission to expedite the verification of emissions by DG TAXUD, as well as to prepare practical solutions for Ukrainian enterprises exporting products to the EU.
Taras Kachka emphasized the importance of the European Commission viewing Ukraine not just as a trading partner but as part of the European market. He stressed that Ukraine is not a “third country,” as there is an Association Agreement between it and the EU, and Ukraine has candidate status for EU membership. In this context, the application of CBAM in its current form appears discriminatory towards Ukrainian exporters.