WTO agrees to Russia's request for panel on EU carbon border levy
The WTO's dispute settlement body agreed on Friday to set up a panel to examine the EU's carbon border levy, after blocking Russia's first request in July.
The World Trade Organization’s dispute settlement body agreed on Friday to Russia’s request to establish a panel examining the European Union’s carbon border levy, Reuters reported on 25 September 2026.
Russia first initiated the dispute over the EU’s Carbon Border Adjustment Mechanism (CBAM) last year, arguing the measure — which imposes a carbon charge on certain imports to match the carbon costs faced by European producers — is discriminatory and protectionist, and has asked the WTO to adjudicate whether it violates international trade rules.
Its first request in July this year was unsuccessful but was accepted on Friday upon its second request. The July block was reported by Carbon Pulse at the time, and the request itself was announced by Russia’s Ministry of Economic Development on 16 July.
CBAM is designed to shield European industries against cheaper imports from countries with weaker climate rules, but it has faced criticism from trading partners including Brazil, South Africa and India, who say it penalises developing economies.
Russia argues CBAM imposes trade barriers for covered goods imported into the EU and also says the EU’s offering of allowances to some companies under its Emissions Trading System — its flagship policy for cutting greenhouse gas emissions — amounts to an export subsidy strengthening European competitiveness. The EU has said it is confident its measures are compatible with WTO rules and will take part in the proceedings.
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