EBA supports Parliament’s proposal to postpone CBAM for Ukraine

The European Business Association’s (EBA) Industrial Ecology and Sustainable Development Committee has supported the call of the Verkhovna Rada Committee on Economic Development to take the necessary steps to initiate the European Commission to postpone the CBAM for Ukraine. This is stated in the EBA statement.

The Verkhovna Rada Committee recently addressed the Ukrainian government with a corresponding proposal. In particular, the parliamentarians propose that such a postponement should be applied for the period until the end of the war and for another five years after its end.

“The EBA greatly values the position of the Members of Parliament, which reflects the challenging conditions under which Ukrainian industry is operating during the full-scale war, as well as the pressing need to ensure the competitiveness of Ukrainian exporters on the EU market,” the EBA said.

The Association expressed hope for further consolidated work of business, parliament and government to protect the interests of Ukraine’s economy and effective integration into European climate regulation, taking into account the realities of wartime.

As a reminder, leading Ukrainian industry associations are massively appealing to the government and the Prime Minister to urgently submit an official request to the EC to postpone the implementation of CBAM, a mechanism for cross-border carbon adjustment. Otherwise, Ukraine may lose a significant portion of its exports to the European Union as early as 2026. In particular, the EBA has been addressing the Government on this issue almost several times a year for the past 4 years, participating in all discussions and constantly providing its calculations to all ministries.

According to GMK Center’s updated estimates, in 2024, Ukraine exported $24.8 billion worth of goods to the EU, of which 14.5% are subject to the CBAM. These are primarily iron, steel, electricity, aluminum, cement, and fertilizers. Analysts predict that under the current structure, the potential losses of Ukrainian exports in 2026-2030 due to the introduction of the mechanism will amount to $4.7 billion, and investment losses over the same period will be $2.7 billion.