“The authorities should work to ensure that the mechanisms of the environmental duty are defined and forecast for Ukraine, the expert believes.”, — write: www.unian.ua
The authorities should work to ensure that the mechanisms of the environmental duty are defined and forecast for Ukraine, the expert believes.
Illustration by REUTERSThe Cross-Border Carbon Adjustment Mechanism (CBAM) has already been operational since October 1, 2023. And although there is a transition period until January 1, 2026, during which companies only submit reports on carbon emissions during their production, Ukrainian business has already faced problems, says Serhii Lavrynenko, CEO of Stalkanat PJSC.The main problems of Ukrainian manufacturers are uncertainty, unpredictability and lack of data, the expert clarified. Yes, businesses have already learned how to complete CBAM reporting, but the overall amount of uncertainty remains very high. Manufacturers do not yet know the reference values of greenhouse gas emissions in the EU, what will be the dynamics of the cost of CBAM certificates, how the EU will expand the list of goods that will be subject to CBAM, and how exactly will large international partners, such as the USA and Britain, react are already preparing their CBAM analogues.
“For metal processors, the main internal risk is not understanding whether large Ukrainian metallurgical enterprises will even survive after the full implementation of CBAM. This is a vertically integrated industry and production chain – from ore extraction to the supply of finished products, which are raw materials for us. We we historically depend on these supplies,” Lavrynenko emphasized.
He expressed confidence that the Ukrainian authorities should work to exclude Ukraine from the CBAM due to force majeure circumstances, and at least sign an agreement that would provide clarity and predictability for the next 10-15 years for Ukraine. Namely, it would record an exhaustive list of goods from Ukraine that will be subject to the SVAM (and will not be supplemented), and a clear calculation algorithm with the values of the components published for the next 10-15 years.
We will remind you that Politico previously stated that Europe is helping Ukraine with financing with one hand, and with the other it is introducing a carbon tax on the ETS, due to which Ukraine will lose 1.4 billion euros every year. But these losses can be avoided if negotiations with the EU are started and benefits are obtained, in particular, the postponement of the introduction of this duty in Ukraine due to the war.
You may also be interested in news:
- Metallurgists and farmers were the most affected by the war in Ukraine – study
- Who is stronger: the economies of the BRICS and G7 countries were compared on an infographic
- The NBU worsened the inflation forecast for 2025