CBAM and Ukraine: Impact on Ukraine’s Electricity Sector and the Role of ETS and Carbon Pricing

On the 25th of April, Berlin Economics, within the framework of the Low Carbon Ukraine project, co-organized an expert workshop on the topic “CBAM and Ukraine: Impact on Ukraine’s Electricity Sector as well as the Role of ETS and Carbon Pricing”.

The workshop aimed to analyze the impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) on Ukraine’s electricity sector and outlined the criteria and steps that Ukraine will need to follow in order to either secure an exemption from the CBAM for its electricity exports or to adapt to it.

Pavel Bilek, Deputy Head of the Energy and Climate team at Berlin Economics, moderated the event, and Rouven Stubbe, Consultant at Low Carbon Ukraine, presented two recent policy studies focusing on the potential CBAM exemption for Ukrainian electricity exports to the EU.

The event featured opening remarks by Ukraine’s Deputy Minister of Energy Yaroslav Demchenkov, Deputy Minister of Environmental Protection and Natural Resources Viktoria Kyreieva, as well as other high-level and expert speakers from the European Commission, the Energy Community Secretariat, Ukrainian Ministries and Reform Support Teams, independent experts and representatives from the private sector.

Key discussions at the event focused on the requirements for a CBAM exemption, ongoing efforts and updates on the implementation of an Emissions Trading System (ETS) and carbon tax reforms in Ukraine, as well as discussions on how to improve Ukraine’s compliance with EU standards.

The corresponding publication can be found here.