Visiting Brussels, notably for the launch of the official EU-Ukraine Green Deal dialogue, the Ukrainian Deputy Prime Minister for European and Euro-Atlantic Integration, Olga Stefanishyna, issued a warning about the EU’s implementation of the Carbon Border Adjustment Mechanism (CBAM).
“It’s no way acceptable that this measure should be incompatible with our association agreements, with WTO commitments”, she told three media outlets, including EUROPE. “So we really expect that any form of the measure which will be presented would not, in any form, be a barrier to trade”, she added. The European Commission’s proposal is expected in June (see EUROPE 12708/29, 12650/7).
According to the Minister, Ukraine would be one of the countries most impacted by this mechanism, together with Russia and Turkey. According to the Kiev School of Economics, the implementation of such a mechanism could cost the country between 3 and 20 billion euros depending on the form it takes, the implementation of the Ukrainian Emissions Trading Scheme (ETS), how closely aligned it is to the EU ETS, and also the free allowances.
“It is important that the mechanism is compatible with trade obligations, that it does not conflict with the spirit of the Energy Community Treaty. And if it is in the form of the emissions trading system, a special transition period should be provided in order that those countries who do not yet have this policy, can implement it”, said the minister.
Ukraine believes that those states with an Association Agreement and a full and comprehensive free trade area should be granted preferential treatment or a derogation.
According to Ms Stefanishyna’s information, the MACF is expected to be a type of new generation emissions trading system. Ukraine is currently working on its national ETS, with the goal of reducing its carbon emissions by 65% by 2060. (Original version in French by Camille-Cerise Gessant)