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EBA calls for greater efforts to secure special CBAM conditions for Ukraine

19/ 10/ 2026
  The European Business Association has called on the Ministry of Economy and Environment of Ukraine to step up dialogue with the European Commission and EU Member States on introducing special conditions for the application of the Carbon Border Adjustment Mechanism (CBAM) to Ukraine. According to estimates by GMK Center, Ukraine’s export losses resulting from CBAM could rise from USD 372 million in 2026 to USD 1.754 billion in 2030. Potential GDP losses by 2030 are estimated at USD 7.248 billion. The metallurgical sector faces particularly significant risks, with exports to the EU potentially declining by USD 1.75 billion by 2030. The additional burden on businesses is compounded by the rising cost of CBAM certificates, which stands at EUR 82.32 per tonne of CO₂ in the third quarter of 2026. Furthermore, the possible extension of the mechanism to additional products with high steel and aluminium content poses risks to new categories of Ukrainian exports. The Association therefore proposes focusing further efforts on two areas. 1. Strategic approach — developing a special CBAM regime for Ukraine in accordance with Regulation (EU) 2023/956. Specifically, during martial law, the fulfilment of CBAM financial obligations would be temporarily deferred, with the amounts subsequently settled through verified decarbonisation and modernisation projects. After the war ends and until Ukraine joins the EU Emissions Trading System (EU ETS), the relevant CBAM revenues would be channelled into a dedicated fund to finance such projects. To this end, the Association proposes establishing regular consultations between the Ministry of Economy and business representatives to jointly develop proposals for Ukraine’s negotiating position. 2. Practical approach — reviewing default emissions values for Ukrainian steel and cement products, developing mechanisms for verifying actual emissions under wartime conditions, and exempting Ukrainian cement and cement clinker from the calculation of indirect emissions. This approach would help minimise CBAM’s adverse impact on Ukrainian industry, preserve companies’ export opportunities and investment potential, and, at the same time, establish the conditions needed for decarbonisation and Ukraine’s gradual integration into the European climate framework.

The European Business Association has called on the Ministry of Economy and Environment of Ukraine to step up dialogue with the European Commission and EU Member States on introducing special conditions for the application of the Carbon Border Adjustment Mechanism (CBAM) to Ukraine.

According to estimates by GMK Center, Ukraine’s export losses resulting from CBAM could rise from USD 372 million in 2026 to USD 1.754 billion in 2030. Potential GDP losses by 2030 are estimated at USD 7.248 billion. The metallurgical sector faces particularly significant risks, with exports to the EU potentially declining by USD 1.75 billion by 2030.

The additional burden on businesses is compounded by the rising cost of CBAM certificates, which stands at EUR 82.32 per tonne of CO₂ in the third quarter of 2026. Furthermore, the possible extension of the mechanism to additional products with high steel and aluminium content poses risks to new categories of Ukrainian exports.

The Association therefore proposes focusing further efforts on two areas.

1. Strategic approach — developing a special CBAM regime for Ukraine in accordance with Regulation (EU) 2023/956. Specifically, during martial law, the fulfilment of CBAM financial obligations would be temporarily deferred, with the amounts subsequently settled through verified decarbonisation and modernisation projects. After the war ends and until Ukraine joins the EU Emissions Trading System (EU ETS), the relevant CBAM revenues would be channelled into a dedicated fund to finance such projects.

To this end, the Association proposes establishing regular consultations between the Ministry of Economy and business representatives to jointly develop proposals for Ukraine’s negotiating position.

2. Practical approach — reviewing default emissions values for Ukrainian steel and cement products, developing mechanisms for verifying actual emissions under wartime conditions, and exempting Ukrainian cement and cement clinker from the calculation of indirect emissions.

This approach would help minimise CBAM’s adverse impact on Ukrainian industry, preserve companies’ export opportunities and investment potential, and, at the same time, establish the conditions needed for decarbonisation and Ukraine’s gradual integration into the European climate framework.

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