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Policy Focus
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About Us
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Policy Focus
The Carbon Border Adjustment Mechanism (CBAM) aims to create a level playing field on CO₂ costs between EU27 producers and importers. As CO₂ costs have increased in recent years, EU imports of cement have risen sharply, while exports from the EU27 have halved, largely due to the absence of equivalent carbon costs in other regions.
CBAM is designed to ensure that importers face the same carbon costs as EU producers, covering both direct emissions from cement production and indirect emissions from electricity use. The system entered its transitional phase in 2023, with full implementation beginning in January 2026.
Our View
Cement Europe considers the CBAM regulation, adopted at the end of 2022, to be a cornerstone of Europe’s climate and industrial policy. Together with the EU Emissions Trading System (ETS), it is critical to establish a regulatory framework that enables investment in carbon-neutral production while maintaining competitiveness.
However, several key challenges remain. The current CBAM regulation does not yet include a mechanism for exports from the EU27, creating a risk of competitive disadvantage for European producers.
The top priority now must be the watertight implementation of CBAM. Without robust enforcement and effective anti-circumvention measures, importers could bypass the system — undermining the competitiveness of EU producers and the credibility of Europe’s climate policy.
A well-designed and firmly implemented CBAM will ensure fair competition, support industrial decarbonisation, and preserve Europe’s strategic capacity to produce cement locally.
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