Ukraine is not ready for CBAM and needs it to be postponed – Plachkov

The mechanism will be an excessive burden for the Ukrainian energy sector and industry

Ukraine is not ready for the European Carbon Border Adjustment Mechanism (CBAM), which will be an excessive burden for the Ukrainian energy sector and industry. This was stated by the chairman of the All-Ukrainian Energy Assembly, former Minister of Fuel and Energy Ivan Plachkov.

According to him, the country has taken on a number of commitments as part of European integration, one of which is the National Emission Reduction Plan (NERP), which provided for the shutdown of thermal power plants as early as 2024-2025. However, with the war, the context has changed, given the situation and the state of the energy sector. Accordingly, the plan is being adjusted with a postponement of deadlines. Ivan Plachkov is convinced that the European Commission and the Energy Community will accept these changes from Ukraine.

Similarly, the chairman of the All-Ukrainian Energy Assembly believes that action should be taken with regard to CBAM.

The National Association of Extractive Industries of Ukraine (NAEIU) warned of growing risks to domestic industry due to the lack of an official request from the Ukrainian government to postpone the CBAM. Without an official request to the European Commission, the country’s industry risks losing $1.4 billion in exports and up to 6% of GDP. The association calls on the Cabinet of Ministers to immediately initiate a dialogue with the EC on postponing or softening the conditions for Ukrainian producers.

As GMK Center reported earlier, leading Ukrainian industry associations have appealed en masse to the government with a demand to urgently submit an official request to the European Commission to postpone the implementation of CBAM. Otherwise, Ukraine may lose a significant part of its exports to the European Union as early as 2026. In particular, over the past four years, the European Business Association has been addressing the government on this issue several times a year, participating in all discussions and constantly providing its calculations to all ministries.