Peculiarities of adaptation of Ukrainian metallurgy to the mechanism of cross-border carbon regulation

Abstract

The article examines the mechanisms for adapting the Ukrainian metallurgy to the requirements of the transboundary carbon management system (TCMS). The main challenges that the industry will face in the event of its final implementation are analyzed (high costs for purchasing certificates, technological backwardness of production, logistical constraints, and risks of losing competitiveness). The average carbon emissions per ton of product are presented, a forecast estimate of the additional payment for CO₂ emissions by type of production facilities is determined. The need to implement a set of institutional (application of free CO₂ emission quotas according to the EU ETS principle) and technological (use of DRI - technologies) measures is emphasized in order to gradually transition the Ukrainian metallurgy to more environmentally friendly standards; reduce the impact of the environmental tax and maintain competitive positions in the European market. The advantages of the proposed measures have been identified, which will allow temporarily reducing the tax burden within the framework of CBAM and obtaining an additional transition period for adapting Ukrainian metallurgy to the environmental standards of the European Union. The need to develop new logistics solutions to improve export supplies to the EU is emphasized, which will reduce transportation costs and expand trade relations. The role of an integrated approach in addressing the issue of cross-border carbon regulation, which includes cooperation between the state, business and international partners, is noted. It is emphasized that the results of the study can be used to form state policy in the field of industrial ecology and support the export potential of the metallurgical industry. Prospects for further research lie in developing a comprehensive strategy for adapting Ukrainian metallurgy to new environmental standards, maintaining its competitiveness and sustainable development in the face of global changes.