CBAM and Electricity Sector: Pathway for Ukraine

On April 11th, Rouven Stubbe participated in an online event organized by the European-Ukrainian Energy Agency, with participants from the Ukrainian Ministry of Energy and GIZ on the implications of the Carbon Border Adjustment Mechanism (CBAM) for Ukraine’s electricity sector.

The presentation was based on the corresponding Policy Briefing.

Key insights provided:

Impact on Electricity Exporters in Ukraine: The analysis provided focused on the repercussions of the Carbon Border Adjustment Mechanism (CBAM) for Ukrainian exporters of electricity, particularly those in the renewable sector. It elaborated on the criteria that renewable energy exporters need to fulfill to avoid the implications of CBAM pricing.

Potential for Temporary CBAM Exemption: The possibility of a temporary exemption from the Carbon Border Adjustment Mechanism (CBAM) for the electricity sector was also explored. The necessary conditions that Ukraine must meet to obtain this exemption were outlined, the foremost being the implementation of an Emissions Trading System (ETS) that mirrors the EU’s ETS in pricing by the year 2030.

These discussions highlight the strategic challenges and decisions confronting the Ukrainian energy sector in its efforts to align with European regulatory standards and optimize its renewable energy export capabilities.