CBAM discriminates against the Ukrainian metallurgical industry23.04.2021CBAM or scenario of the carbon adjustment mechanism implementation suggested by the European Union could cause damage to Ukraine’s metallurgical industry. The export of Ukrainian metallurgical production worth €25,000,000 is covered by the CBAM program.
The share of Ukrainian metallurgical products delivered to the EU market is higher than the share for domestic use: 26% vs. 23%. The share of converter capacities in Ukrainian metallurgy (including open-hearth capacities) is also one of the largest in the world and constitutes 90%. The sales territory and approach to metallurgical products production in Ukraine cause significant financial losses from the CBAM program. Converter production does not have the potential to reduce CO2 emissions but provides access to iron ore resources, being the basis for Ukrainian metallurgy.
The share of Ukrainian metallurgical products delivered to the EU market is higher than the share for domestic use: 26% vs. 23%. The share of converter capacities in Ukrainian metallurgy (including open-hearth capacities) is also one of the largest in the world and constitutes 90%. The sales territory and approach to metallurgical products production in Ukraine cause significant financial losses from the CBAM program. Converter production does not have the potential to reduce CO2 emissions but provides access to iron ore resources, being the basis for Ukrainian metallurgy.