The introduction of the Cross-Border Carbon Adjustment Mechanism (CBAM) in 2026 will deal a serious blow to the Ukrainian economy. This warning was issued by Olexander Vodoviz, Head of the Office of the CEO of Metinvest Group, at the conference “On the Path to Integration: Dialogue between Government and Business for Ukraine’s EU Membership.”
He stressed that the government must work together to find a solution to either postpone this period, given that the country is at war, or consider alternative commitments to the EU in order to avoid the introduction of a carbon tax on January 1.
Alexander Vodoviz noted that European metallurgical plants receive billions in grants for decarbonization and bringing environmental standards into line with EU requirements.
«How can we compete with them? We don’t have such opportunities. Therefore, we are asking for a postponement of at least five years from the date of introduction of the CBAM and sincerely hope that this will be achieved,» he explained.
The head of Metinvest’s CEO office emphasized that decarbonization for Europe is primarily a tool to protect its own market, rather than a concern for the environment.
Since 2024, the bloc has adopted more than ten regulatory acts on the CBAM, which will come into force on January 1, 2026. EU directives define permissible CO2 emissions for various units and the procedure for calculating the tax in case of their exceeding for products exported to the EU.
“There are two months left before the introduction of CBAM, and we still don’t know how much we will pay,” explained Oleksandr Vodoviz.
According to research by Ernst & Young and the Federation of Employers of Ukraine, the introduction of the mechanism in Ukraine from next year will lead to a reduction in GDP of approximately 5%, and from 2030 – 10%.
Oleksandr Vodoviz noted that the European Union has a mechanism for trading carbon emission quotas. Companies pay €100-120 per ton of CO2. There are also free quotas that are allocated to metallurgical plants and chemical industry enterprises.
Ukraine has taken the first step in this direction by introducing monitoring and reporting on greenhouse gas emissions. The next task is to create the quota trading system itself.
The head of Metinvest’s CEO office expressed concern about the idea of creating a fund where companies would pay money and then someone would distribute it for decarbonization.
“We understand very well what such opaque schemes can lead to. We advocate a different approach – integration with the European emissions trading system, which has a clear and transparent mechanism: the funds paid for emissions are returned to companies in the form of support for decarbonization,” he said.
At the same time, Minister of Economy, Environment, and Agriculture Oleksiy Sobolev said in an interview with Forbes Ukraine that the ministry is working to postpone the introduction of the ETS for Ukraine until at least 2028.
The minister noted that at the end of November, the government plans to agree with the European Commission on the mechanics of the transition. The priority now is to ensure the survival of businesses, followed by providing additional investments for the transition to the new system.
Sobolev outlined two approaches to implementing the European Emissions Trading System (ETS): building a Ukrainian system and gradually implementing it and connecting it to the European one, or waiting a few years and joining the one in force in the EU.
The minister said that in December, the relevant ministry will hold consultations with businesses to choose a model. After that, a draft law will be developed by the end of the year, which can be adopted in the first quarter of 2026.
Recall that Metinvest COO Oleksandr Myronenko previously noted that postponing CBAM for Ukraine would make it possible to carry out eco-modernization of enterprises after the war.