Former EU trade commissioner Pascal Lamy has called for Ukraine to be exempted from the EU's Carbon Border Adjustment Mechanism (CBAM), arguing that such treatment could be linked to specific decarbonization commitments as the country progresses toward EU membership, according to media reports.
Lamy said Ukraine should receive special treatment under CBAM given its status as an EU candidate country.
According to Lamy, the EU could make a Ukrainian CBAM exemption conditional on the country implementing its commitments to align its climate policies with the bloc as part of the accession process.
Ukraine is working toward establishing its own emissions trading system in line with its European integration commitments. However, a Ukrainian ETS is not yet operational, meaning the country currently does not have a qualifying domestic carbon price that could be deducted from CBAM obligations under the EU mechanism.
Ukrainian steel industry faces growing CBAM concerns
The issue is particularly significant for Ukraine's steel industry due to its reliance on exports to the EU and the carbon intensity of conventional steelmaking.
Ukrainian steel industry organizations have also been seeking relief from the mechanism. Ukrmetallurgprom and the Federation of Employers of Ukraine have urged the Ukrainian government to seek exemptions from EU measures, while Ukrainian producers have highlighted the combined impact of CBAM and tighter EU steel import quotas on their access to the European market.
The definitive phase of CBAM began on January 1, 2026, requiring EU importers of covered products, including iron and steel, to account for their embedded carbon emissions through CBAM certificates. The mechanism is being progressively strengthened as free allowances under the EU Emissions Trading System are phased out.
