New EU policy could result in over 100,000 job losses in Ukraine, says report
The Carbon Border Adjustment Mechanism, which is scheduled to be implemented next year, will levy tariffs on imports that are carbon-intensive. Read Full Article at RT.com
TroibNews 
The Carbon Border Adjustment Mechanism, scheduled to be implemented next year, will impose tariffs on carbon-intensive imports into the European Union.
A significant number of Ukrainian jobs may be threatened by this new EU environmental tariff, according to a warning from the Federation of Employers of Ukraine. The organization expressed concerns that the tax could have considerable repercussions for the nation’s economy.
Designed to prevent cheaper, high-pollution foreign goods from jeopardizing the EU’s green transition, the CBAM could have severe consequences for over 116,000 jobs in Ukraine’s steel, chemicals, and cement industries, which heavily rely on carbon-intensive processes, as highlighted in a report released on Friday.
“The biggest challenges for us in implementing CBAM are uncertainty, unpredictability, and a lack of data,” stated Sergey Lavrynenko, the CEO of Stalkanat, a Ukrainian producer of steel ropes and fibers.
Targeted for implementation in 2026, the CBAM intends to establish a fairer market by taxing imports into the EU that fail to comply with stringent environmental standards. Exporters to the EU will be required to purchase certificates to account for their carbon dioxide emissions.
The report indicated that the CBAM could significantly affect Ukraine's economy, which is heavily dependent on exports. It predicted a potential GDP decline of 6.4% by 2030, alongside a 6.3% drop in exports, including a projected 9.8% decrease in exports to the EU.
This measure is poised to protect EU manufacturers from foreign competition while encouraging foreign industries to invest in modernization to comply with EU standards and eliminate the associated tariffs.
Although the EU maintains that the tax initiative is vital for combating climate change, Kiev argues that it will disadvantage its industries.
“We still don’t know the specific greenhouse gas emissions limits for our products in the EU, how these limits will change, what the cost of CBAM certificates will be, or how the EU will expand the list of goods affected by the tax,” Lavrynenko continued.
In light of the situation, Ukraine is pursuing either an exemption or a postponement for the implementation of the CBAM, referring to a provision in the regulation that addresses unexpected events causing significant harm, which could relate to the ongoing conflict with Russia.
To alleviate potential impacts, Ukrainian officials have been advocating for financial assistance for industries that may struggle to meet the EU's environmental standards.
While Kiev asserts that the EU possesses the legal mechanisms to lessen the tax's impact on Ukraine, the bloc remains at a dilemma, as the CBAM is integral to its comprehensive climate strategy that includes initiatives aimed at supporting the green reconstruction of Ukraine.
Thomas Evans contributed to this report for TROIB News
A significant number of Ukrainian jobs may be threatened by this new EU environmental tariff, according to a warning from the Federation of Employers of Ukraine. The organization expressed concerns that the tax could have considerable repercussions for the nation’s economy.
Designed to prevent cheaper, high-pollution foreign goods from jeopardizing the EU’s green transition, the CBAM could have severe consequences for over 116,000 jobs in Ukraine’s steel, chemicals, and cement industries, which heavily rely on carbon-intensive processes, as highlighted in a report released on Friday.
“The biggest challenges for us in implementing CBAM are uncertainty, unpredictability, and a lack of data,” stated Sergey Lavrynenko, the CEO of Stalkanat, a Ukrainian producer of steel ropes and fibers.
Targeted for implementation in 2026, the CBAM intends to establish a fairer market by taxing imports into the EU that fail to comply with stringent environmental standards. Exporters to the EU will be required to purchase certificates to account for their carbon dioxide emissions.
The report indicated that the CBAM could significantly affect Ukraine's economy, which is heavily dependent on exports. It predicted a potential GDP decline of 6.4% by 2030, alongside a 6.3% drop in exports, including a projected 9.8% decrease in exports to the EU.
This measure is poised to protect EU manufacturers from foreign competition while encouraging foreign industries to invest in modernization to comply with EU standards and eliminate the associated tariffs.
Although the EU maintains that the tax initiative is vital for combating climate change, Kiev argues that it will disadvantage its industries.
“We still don’t know the specific greenhouse gas emissions limits for our products in the EU, how these limits will change, what the cost of CBAM certificates will be, or how the EU will expand the list of goods affected by the tax,” Lavrynenko continued.
In light of the situation, Ukraine is pursuing either an exemption or a postponement for the implementation of the CBAM, referring to a provision in the regulation that addresses unexpected events causing significant harm, which could relate to the ongoing conflict with Russia.
To alleviate potential impacts, Ukrainian officials have been advocating for financial assistance for industries that may struggle to meet the EU's environmental standards.
While Kiev asserts that the EU possesses the legal mechanisms to lessen the tax's impact on Ukraine, the bloc remains at a dilemma, as the CBAM is integral to its comprehensive climate strategy that includes initiatives aimed at supporting the green reconstruction of Ukraine.
Thomas Evans contributed to this report for TROIB News
