WTO takes up Russian challenge to EU carbon trade measures
25.09.2026, DPA
The World Trade Organization (WTO) is to examine a Russian complaint alleging that the European Union's carbon border levy and its emissions trading system violate international trade rules.
Russia submitted a second request for a WTO dispute panel to determine whether the EU's Carbon Border Adjustment Mechanism (CBAM) and an alleged export subsidy under its Emissions Trading System (ETS) are consistent with the bloc's WTO commitments.
The EU had blocked Russia's first request for a panel in July. Under WTO rules, however, a panel is automatically established following a second request.
Russia argues that CBAM creates significant trade barriers for goods imported into the EU.
The mechanism is designed to ensure that certain imports face carbon costs comparable to those imposed on products manufactured within the bloc, with the aim of preventing companies from shifting carbon-intensive production abroad.
Moscow also argues that the EU's allocation of emissions allowances to certain companies under the ETS amounts to an export subsidy intended to make European industries more competitive.
The EU said it was extraordinary that Russia, which it said continues to "wage its war of aggression against Ukraine," was seeking to invoke international law to improve access for its exports to the European market.
It said it would participate in the proceedings to reaffirm its support for the rules-based multilateral trading system rather than to legitimize Russia's actions.
The EU also expressed confidence that both CBAM and the ETS comply with WTO rules.
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