Members of the European Parliament have called on the European Commission to reconsider the application of the Carbon Border Adjustment Mechanism (CBAM) to Ukraine.
The issue was discussed during a meeting of the European Parliament’s Committee on the Environment, Climate and Food Safety (ENVI), where lawmakers reviewed amendments to the CBAM Regulation and proposals linked to a Temporary Decarbonization Fund.
Concerns raised over wartime implementation challenges
Mohammed Chahim, CBAM rapporteur and member of the Parliament, stated that the current force majeure provisions do not adequately reflect the realities of the war in Ukraine. According to Chahim, Ukraine currently lacks the capacity to implement decarbonization measures at the pace required under CBAM and faces difficulties ensuring independent verification of emissions data during wartime conditions. He proposed that the EU discuss a separate solution specifically designed for Ukraine.
Peter Liese, representative of European People’s Party, also supported a special approach, describing Ukraine as an exceptional case, while Pascal Canfin, rapporteur on the Temporary Decarbonization Fund, backed calls for additional flexibility and expressed disappointment that the European Commission had not provided clearer guidance regarding Ukraine’s situation.
European Commission avoids direct commitment
However, Maria Elena Scoppio, director for indirect taxation and tax administration at the European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD), stated that Ukraine was not part of the current report under discussion.
She declined to comment on whether the Commission would consider introducing a special CBAM regime or force majeure provisions for Ukraine.
Ukrainian steel sector warns of competitiveness risks
As SteelOrbis reported previously, Ukrainian miner and steel producer Metinvest Group warned that CBAM poses a major challenge for Ukraine’s steel industry and could significantly weaken the competitiveness of Ukrainian steel exports in the EU market.
In addition, Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, stated that European customers had cancelled orders after learning Ukrainian steel imports could face additional CBAM-related costs of approximately $60-90/mt.
Wider debate on competitiveness and CBAM expansion
During the ENVI committee debate, lawmakers also discussed the broader impact of CBAM on European competitiveness and international trade.
Pascal Canfin warned that European producers are already facing additional carbon-related costs while Russian competitors remain outside the scope of equivalent measures.
The meeting also addressed possible expansion of CBAM coverage to additional customs codes in order to strengthen protection for EU industry. Commission representatives cautioned that overly broad expansion could create significant administrative burdens and stressed the need to balance proportionality with technical feasibility.