Ukraine starts talks with EU on CBAM implementation

Monday, May 24, 2021
Ukraine starts talks with EU on CBAM implementation

Ukraine has become the first non-EU member country with which it has begun official negotiations on Carbon Border Adjustment (CBA)

As the Vice Prime Minister on European and Euro-Atlantic Integration Olga Stefanyshyna said on her Facebook page, Ukraine created a working group on CBAM, which includes representatives of four Ministries: economy, energy, finance and environment.

"We are in constant contact with the developers of new "green policies" in the EU," Stefanyshyna said. - Based on the information we have received, we have made calculations within the Government regarding the possible effects of the future policy in Ukraine, attracting the best Ukrainian intellectual resources. And this week in Brussels we have held two very successful rounds of talks on CBAM. The first one was at the political level, as part of a special dialogue on the European Green Agreement and Ukraine's green transition, where we presented our arguments about CBAM".

The second round took place at the technical level with the CBAM developers, DG Taxud and his team.

Stefanyshyna noted that CBAM will initially be "soft,", its structure will be simple, but the EU aims to gradually reduce the free permits, and include a wide range of products over time.

"Most likely, CBAM will target companies rather than individual countries. This way they are trying to comply with WTO rules and support businesses that invest in environmental and climate protection. The CBAM is planned to be extended to electricity and some raw materials sectors, of which metallurgy is the most vulnerable," the deputy Prime Minister said.

Preferential regimes under CBAM are being discussed, the final decision is up to the European Parliament.

"A question was raised that is extremely important for us: how the European Commission will take into account the climate policies of other states. We submitted our proposals and agreed to work together on a method for determining their equivalence, which is now in the process of development. I suggest that our think tanks start thinking about this and submit proposals to the government. In the end, we received advice that, in addition to work within the framework of the Association Agreement or the Energy Community, the best strategy for partner countries to claim special treatment is an ambitious NSP, the implementation of emissions trading and development of climate management architecture," said Stefanyshyna.

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