The European Parliament calls for a reduction in the “carbon tax” for Ukraine: what will this change?
13 May 21:27
Members of the European Parliament have called on the European Commission to adopt a more lenient approach to the application of the Carbon Border Adjustment Mechanism (CBAM) with regard to Ukraine.
The issue was discussed during a meeting of the European Parliament’s Committee on the Environment, Public Health and Food Safety, according to "Komersant Ukrainian".
Position of European Parliament Members
The rapporteur on CBAM, MEP Mohammed Shagim, emphasized the importance of treating the war in Ukraine as a force majeure event.
He stated:
“I cannot imagine what situation would qualify as force majeure if the war in Ukraine does not.”
Peter Liese, a representative of the European People’s Party, also expressed support for the need for a separate approach for Ukraine.
He noted:
“I don’t want to open Pandora’s box, but Ukraine is truly a special case.”
Liese also asked the European Commission why Brussels is not currently considering the possibility of exceptions for Ukraine.
European Commission representative Maria Elena Scoppio stated that Ukraine was not the subject of the meeting and did not comment on the possibility of applying a special regime or force majeure to the country.
The meeting also discussed amendments to the CBAM and the creation of the Temporary Decarbonization Fund, which is a financial support instrument for the green transition of manufacturers within the EU. The fund is partially financed by CBAM levies from exporting countries, including Ukraine.
Pascal Kanfen , the rapporteur on the Temporary Decarbonization Fund, expressed disappointment at the lack of a clear response from the European Commission regarding Ukraine. He cautioned that a strict implementation of the CBAM could strengthen the position of Russian exporters, who do not face additional carbon costs.
Proposals were made at the meeting to further expand the CBAM to additional tariff codes to protect European companies, which Skoppio from the European Commission welcomed.
As a reminder, in early May, Western media reported that the EU was negotiating with Ukraine to exempt Ukrainian steel from the CBAM.
In February, the CBAM was one of the reasons for the closure of theArcelorMittal Kryvyi Rih foundry and mechanical plant.
What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is a mechanism that imposes additional duties on products manufactured with high carbon emissions. Its goal is to encourage a reduction in carbon emissions in manufacturing; however, this makes Ukrainian steel exporters uncompetitive in EU markets.
