Ukrainian business proposes to adapt climate goals to wartime conditions

Despite the war, infrastructure destruction, and economic instability, Ukrainian businesses continue to implement climate initiatives. However, representatives of the business community emphasize that Ukraine’s current climate commitments require flexibility and adaptation to the real conditions in which the country finds itself. This is stated in a press release from the European Business Association (EBA).

According to estimates by the Kyiv School of Economics, losses in Ukrainian industry, construction, and services have reached $14.4 billion, with more than 500 enterprises destroyed or damaged. In addition, over three years, greenhouse gas emissions related to the war have reached 230 million tons of CO2 equivalent, and in 2024 alone, they increased by 30% compared to 2023.

In these conditions, climate initiatives are mainly implemented by companies that have maintained production. At the same time, business opportunities for investing in decarbonization remain limited without external support.

According to the EBA, the current target of reducing emissions by 68-73% by 2035 (from 1990 levels) is extremely ambitious. The business community proposes to consider the possibility of adjusting it — for example, three years after the end of martial law. Such a mechanism would allow a balance to be struck between international commitments and economic realities.

The EBA has addressed this position to the First Deputy Prime Minister, the Minister of Economy, the Minister of Energy, the Minister of Environmental Protection, and the Verkhovna Rada Committee on Environmental Policy.

It should be recalled that leading Ukrainian industry associations are appealing en masse to the government and the Prime Minister with a request 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 EBA has addressed this issue to the government several times a year, participated in all discussions, and constantly provided 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.