In brief 

The Carbon Border Adjustment Mechanism (CBAM) aims to level the playing field between EU27 producers and importers in terms of CO2 costs. With increasing CO2 prices in recent years, there is strong evidence that EU imports of cement have significantly increased.  

CBAM is designed to ensure that importers face similar CO2 costs that the ones borne by EU suppliers. It will take into account both direct and indirect emissions. Whilst reporting requirements are due to enter into force in October 2023, the full implementation of CBAM will start in January 2026.

Our view

The Carbon Border Adjustment Mechanism regulation approved at the end of 2022 is critical to equalize carbon costs between cement producers in the EU27 and importers to the EU27. Together with the EU Emission Trading Scheme (ETS), the CBAM is critical to create a regulatory framework in which carbon neutrality investments can be delivered. We however regret that the CBAM agreement does not foresee any structural solution for European exports.  

Going forward, CEMBUREAU believes that a strong focus should be put on CBAM’s implementation. For instance, national authorities and customs departments will play an important role. Sampling, analysing, monitoring, reporting, etc. all have to be set up for the correct implementation of the CBAM regulation, and to avoid circumventions and fraud.