Parliament’s Economic Committee urges government to work on postponing CBAM

The Parliamentary Committee on Economic Development has called on the government to take the necessary steps to initiate a postponement of the implementation of the Carbon Border Adjustment Mechanism (CBAM) for Ukraine before the European Commission.

This was announced by Dmytro Kysylevskyi, Deputy Chairman of the Verkhovna Rada Committee on Economic Development.

The parliamentarians propose that the said postponement should apply to Ukraine for the period until the end of the war and for five years after it.

“We appealed to the Cabinet of Ministers with a proposal to take the necessary measures to obtain special CBAM conditions from the EU for Ukraine for the period of martial law and at least five years from the date of termination of martial law,” wrote Dmytro Kysylevskyi.

Similar appeals were previously made by leading Ukrainian business associations. For example, the Federation of Employers of Ukraine emphasized the need to use the force majeure clause in applying CBAM regulations to Ukrainian business.

The introduction of CBAM is one of the main risks that threatens not only the industry but will have fatal consequences for the entire Ukrainian economy. According to a study by CMD Ukraine, CBAM will make economic recovery and implementation of the country’s plans to modernize and decarbonize production impossible.

According to GMK Center’s forecasts, the negative impact of the CBAM will increase over time as the number of available allowances decreases and the price of CO2 rises. According to the estimates, in 2030, Ukraine’s export losses due to the CBAM could amount to $1.8 billion, and the total export losses for 2026-2030 could reach $4.7 billion.

As GMK Center reported earlier, the government is already preparing official requests to the European Commission to grant exemptions for Ukraine as a whole and for electricity exports separately. Work on this issue will continue in the coming months.

As GMK Center reported earlier, the CBAM will come into force on January 1, 2026. Currently, there are no exceptions or special conditions for Ukrainian products. At the same time, domestic producers do not have access to special financing terms and modernization grants available to European manufacturers.