Brussels awaits Kyiv’s request to postpone carbon tax
6 July 01:13
The European Commission may postpone the full implementation of the carbon tax (CBAM) for Ukraine until February 1, 2027.
According to "Komersant Ukrainian", the German newspaper Tagesspiegel writes about it.
According to the report, the CO₂ tax could be a heavy burden for the Ukrainian industry.
Although the European Commission is ready to postpone the full introduction of the tariff for Ukraine until 2027, the country has not yet submitted an official application for such a postponement.
Ukraine does not have a system for monitoring emissions in products, so high standard rates will be applied, making Ukrainian products less competitive.
The CBAM envisages that producers from outside the EU will pay for carbon dioxide emissions to level the playing field with European companies already operating under a carbon tax.
Postponing the introduction of the ETS would give Ukraine the opportunity to adapt to the new conditions, which is especially important during the war. The country is facing a destroyed infrastructure, more than 70% of the damaged energy system, and limited access to resources for businesses.
The largest losses from the CBA are expected for the Ukrainian metallurgy, which accounted for 15% of merchandise exports in 2024.
It is estimated that the introduction of the CBA could reduce exports to the EU by 40%, which equals a loss of $1.6 billion.
As a reminder, the European carbon tax, the CBA, will come into effect in the EU on January 1, 2026. Currently, the European Union remains Ukraine’s key trading partner. Since the tax is imposed on products with high CO₂ emissions, it creates additional obstacles for domestic producers, especially in the metallurgical and chemical industries. Experts estimate that Ukraine may lose $4.7 billion in exports over five years due to the introduction of the carbon tax.
