European Parliament Calls for Revising the CBAM Approach Toward Ukraine

The issue of the Carbon Border Adjustment Mechanism (CBAM) and its impact on Ukraine has once again become a topic of discussion in the European Parliament. During a meeting of the European Parliament’s Committee on the Environment, Climate and Food Safety (ENVI), members called on the European Commission to reconsider the application of CBAM to Ukraine and take into account the conditions of the full-scale war.

CBAM rapporteur Mohammed Chahim stated that it is difficult to imagine what circumstances could qualify as force majeure if the war in Ukraine does not. He stressed that, under wartime conditions, Ukraine is unable to decarbonize at the pace required by EU rules and is also facing serious difficulties with emissions verification due to ongoing attacks and damage to infrastructure.

The need for a separate approach toward Ukraine was also supported by Members of the European Parliament Peter Liese and Pascal Canfin. At the same time, European Commission representative Maria Elena Scoppio did not provide a clear response regarding the possibility of a special regime or postponement for Ukraine.

Meanwhile, Ukrainian business associations continue urging the EU to revise its CBAM approach. Industry representatives argue that the European Commission’s current assessments fail to reflect the real economic impact of the war. According to them, the issue has already moved beyond environmental policy and is directly affecting exports, industrial production, and employment. Among the examples cited are production cuts at ArcelorMittal and declining exports of certain steel products to the EU.

Ukrainian officials and business groups have also raised concerns over the use of so-called default values for CO₂ emissions, which they say significantly exceed the actual emissions levels of Ukrainian enterprises. Deputy Prime Minister Taras Kachka stated that the European Commission has already acknowledged mistakes in its previous calculations.

Ukraine is currently continuing negotiations with the EU regarding a possible transition period or a separate CBAM approach under wartime conditions.

Source: based on materials from GMK Center, European Pravda, and statements made during discussions in the European Parliament.

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