Samira Musayeva: Azerbaijan to pay carbon tax on exports to EU

Approximately 0.4% of Azerbaijan's exports to the European Union will be affected by the new Carbon Border Adjustment Mechanism (CBAM), which comes into effect on January 1 of next year, Deputy Head of the State Tax Service Samira Musayeva said at the XIII International Caspian Energy Forum 2025 in Baku, Report informs.

According to her, starting in 2026, the EU will launch a cross-border carbon adjustment mechanism, under which a carbon fee will be charged on certain categories of imported goods.

"This mechanism covers six product groups, and when importing them into the EU, it will be determined whether a carbon price has been applied in the country of origin for emissions arising during production. Depending on this, a carbon fee will be levied at the border," Musayeva explained.

She emphasized that, to minimize potential consequences, Azerbaijan has created a working group under the Ministry of Economy to analyze the impact of the CBAM on local businesses and assess their competitiveness when exporting to Europe.

"According to preliminary estimates, only 0.4% of all Azerbaijani exports are subject to the carbon tax. Given the recently introduced simplified EU mechanisms, this effect will be insignificant," the ministry representative added.