Report states Ukraine possibly to lose exceeding 100,000 jobs because of new EU regulation

(MENAFN) A new EU environmental tariff, known as the Carbon Border Adjustment Mechanism (CBAM), could jeopardize thousands of jobs in Ukraine, particularly in industries like steel, chemicals, and cement. The Federation of Employers of Ukraine has warned that the policy, set to be implemented in 2026, could threaten over 116,000 jobs in sectors heavily reliant on carbon-intensive processes.

The CBAM, designed to prevent foreign goods with high carbon emissions from undercutting the EU’s green transition, will require exporters to the EU to buy certificates for their CO2 emissions. Although the EU argues the measure is essential for climate goals, Ukraine's government fears it could severely impact the country’s economy, which depends on exports. By 2030, Ukraine's GDP could shrink by 6.4%, with exports potentially falling by 6.3%, including a nearly 10% drop in exports to the EU.

Sergey Lavrynenko, CEO of Stalkanat, a Ukrainian steel manufacturer, expressed concerns over the uncertainty surrounding the CBAM, particularly the lack of data and the unpredictability of emissions limits. Ukraine is now seeking a delay or exemption from the policy, citing the ongoing conflict with Russia as a possible reason for significant harm. Officials are also pushing for financial support for industries that struggle to meet the EU’s environmental standards.

While the EU aims to support Ukraine's green reconstruction, the CBAM is a central part of the bloc's broader climate strategy, and its potential impact on Ukraine remains a contentious issue.

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