The Government will start negotiations on non-application of a new carbon tax to Ukraine’s exports to the EU
On October 13, the EBA representatives learned about the Government’s intention to start negotiations on not applying a new carbon tax to Ukraine’s exports to the EU during the round table “Climate change: European Green Deal, international commitments, priorities, and opportunities for Ukraine”.
Besides, the Ukrainian side has initiated a dialogue with the EU on an individual approach to Ukraine, which has already committed itself to political and economic integration under the Association Agreement, contributes to decarbonization, and is ready to become a partner in implementing a new “green economy”.
We at the European Business Association have begun to carefully analyze the impact of the European Green Deal and the Carbon Border Adjustment Mechanism (CBAM) envisaged by it already back in the spring. Thanks to the expertise of representatives of EBA member companies in various industries, we were able to develop a holistic position and calculate the consequences that will await Ukrainian business in case this additional regulation is applied. On September 17, during a Ukraine-EU roundtable, business and government officials announced their intention to advocate the non-application of a new carbon tax to Ukraine’s exports to the EU. We are very glad that today our achievements have become not only the voice of the entire business community but also the basis of the official position of the government in international negotiations with European partners.
At the same time, one of the EBA representatives reiterated that for the support and defense of this position, Ukraine has to demonstrate to the EU tangible steps in developing environmental policy and transformation of the Ukrainian industry, agriculture, energy, housing, and communal services, transport.
This involves creating the preconditions for launching a scheme for greenhouse gas emission trading system, reforming environmental finances and their targeted use, as well as setting realistic goals for reducing greenhouse gas emissions in the Second Nationally Defined Contribution to the Paris Agreement (NDC2). Setting an overly ambitious goal, which Ukraine is not able to achieve, could compromise us in the eyes of international partners, which will have a negative impact on our trade relations.
We are grateful to the government for taking into account the position of the Association and we are convinced that only with the synergy of government and business we will be able to continue to effectively build a green economy and combat climate change.
For the reference: The event was initiated by the Ukrainian Business&Trade Association and the National Institute for Strategic Studies with the support of the UN Office in Ukraine, bringing together statesmen, experts, scientists, representatives of international organizations, and business organizations of Ukraine.
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