BRUSSELS — Ukrainian steelmakers say the EU’s new carbon border tax is prompting European customers to cancel orders, threatening one of the war-torn country’s most important sources of export revenue.
The Carbon Border Adjustment Mechanism, which came into force in January, requires importers to pay a carbon fee on certain foreign-made industrial goods, including steel. The point is to wean the dirtiest industries off planet-warming fossil fuels.
But Ukrainian steel giants, struggling with the effects of Russia’s four-year full-scale invasion, say they need a temporary exemption from the CBAM, noting it has already chased away regular buyers.
Metals are one of Ukraine’s biggest export industries, worth nearly $4 billion in 2023 according to the World Bank. The EU is by far its biggest market, with Poland alone accounting for a third of Ukraine’s metal exports.
