The USPP calls on the government to initiate a postponement of CBAM for Ukrainian exports

The Ukrainian Union of Industrialists and Entrepreneurs (USPP) has appealed to the Cabinet of Ministers to submit an official request to the European Commission (EC) as soon as possible to postpone the introduction of the Carbon Border Adjustment Mechanism (CBAM) for Ukrainian exports.

The USPP has repeatedly emphasized the risks of unconditional implementation of CBAM from 2026. Back in May 2024, the organization publicly called for negotiations with European partners to be initiated. Today, this call is reinforced by information that the European Commission is ready to consider postponing the mechanism for Ukraine, provided that an official request is received.

“This is a window of opportunity that cannot be missed. The government must act quickly and in a coordinated manner. It is necessary to immediately appeal to the European Commission with a corresponding request, justified by economic losses and military circumstances,” emphasized USPP President Anatoliy Kinakh.

According to the business community, the introduction of CBAM without a transition period could cost Ukrainian producers more than €1 billion. This concerns key sectors of the economy – metallurgy, chemicals, and cement. Due to the lack of an internal emissions trading system and limited access to financing, Ukrainian enterprises are currently not ready to fully comply with the requirements of the European Green Deal.

The USPP emphasizes that effective decarbonization requires the involvement of international partners, industry associations, and the creation of internal support mechanisms. These issues are already being addressed by the Anti-Crisis Headquarters for Economic Stability, which has submitted relevant proposals to the National Security and Defense Council, parliament, and government.

It should be recalled that leading Ukrainian industry associations are appealing en masse to the government and the prime minister with a demand to urgently submit an official request to the EC to postpone the introduction of CBAM, the cross-border carbon adjustment mechanism. 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.

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