The CBAM program will discourage investment in the Ukrainian industry22.04.2021Decarbonization is a set of measures aimed at CO2 emissions reduction and global warming slowdown.
If Ukraine adheres to the European Union’s Carbon Adjustment Mechanism (or CBAM) scenario, its metallurgy industry will pay contributions of €168-542 million per year.
The decline in funding will reduce the investment attractiveness of the industry. As a result, the investments in the metallurgical industry will decrease by 12% or €130 million per year. Losses for this industry will increase every year since the price of emission permits will continue rising until 2030. At the same time, the competing countries can receive subsidies from the state for local steel production support.
As a result, due to financial losses from the CBAM program, the process of Ukrainian industry decarbonization will not be accelerated, but rather slowed down.
In general, CBAM will hinder Ukraine's integration into the EU, ie Ukraine's implementation of the Association Agreement.
If Ukraine adheres to the European Union’s Carbon Adjustment Mechanism (or CBAM) scenario, its metallurgy industry will pay contributions of €168-542 million per year.
The decline in funding will reduce the investment attractiveness of the industry. As a result, the investments in the metallurgical industry will decrease by 12% or €130 million per year. Losses for this industry will increase every year since the price of emission permits will continue rising until 2030. At the same time, the competing countries can receive subsidies from the state for local steel production support.
As a result, due to financial losses from the CBAM program, the process of Ukrainian industry decarbonization will not be accelerated, but rather slowed down.
In general, CBAM will hinder Ukraine's integration into the EU, ie Ukraine's implementation of the Association Agreement.