Ukraine faces potential export losses of $1.39 billion due to the EU's Carbon Border Adjustment Mechanism (CBAM). The metallurgy sector is the hardest hit, with some estimates suggesting a significant decline in exports if actual emissions cannot be verified and default rates are applied. To mitigate these losses, Ukrainian officials are seeking emissions audit support and negotiating with the European Commission for exemptions. The goal is to align Ukraine's climate policy with EU standards to maintain market competitiveness and fund industrial modernization.
