Ukraine could face a 4.8% GDP loss in 2026 due to the EU's environmental tariffs, according to the Federation of Trade Unions.

The Federation of Employers of Ukraine has conducted an economic modeling of the impact of the Carbon Border Adjustment Mechanism (CBAM) on the Ukrainian economy following the full implementation of the carbon adjustment mechanism in the EU.

This was reported by the press service of the Federation of Employers of Ukraine, citing the words of the Director of the Department of Ecology, Energy, and Green Economy, Olga Kulyk.

According to Kulyk, the modeling was performed based on commodity groups affected by the CBAM, taking into account the inter-industry connections created by companies producing CBAM goods in Ukraine.

The results of the study indicated that the full implementation of the CBAM could lead to a total decline in Ukraine's GDP by 4.8% by 2026. The number of jobs may decrease by 120,000 by 2034.

Background. Previously, Mind reported that the dynamics of economic development in Ukraine decreased in 2024. The Ministry of Economy estimates the country's GDP growth last year at 3.6%.