The European associations Cement Europe, EUROFER (steel), and Fertilizers Europe have issued a joint statement expressing their support for the Carbon Border Adjustment Mechanism (CBAM), viewing it as a necessary tool to level the playing field regarding carbon costs between European producers and those in third countries. The signatory organizations welcome the proposal presented by the European Commission in December 2025 to strengthen the CBAM by expanding anti-circumvention provisions, including specific downstream sectors, and reinforcing traceability requirements. However, they believe that certain aspects need to be clarified or strengthened to ensure the mechanism's effectiveness, predictability, and coherence with the European Emissions Trading System (ETS).

Among their key demands, the associations call for explicitly addressing the risk of “resource shuffling”—that is, the possibility that producers in third countries might direct products with lower emissions intensity to the European Union while redirecting more carbon-intensive ones to other markets. They also seek a stable solution for European exports to ensure that EU producers are not placed at a disadvantage in foreign markets vis-à-vis competitors who do not face equivalent carbon costs.

For their part, the three associations call for the removal of proposed articles that would allow certain products or countries to be excluded from the scope of the CBAM via expedited procedures, arguing that this could undermine the predictability of decarbonization investments. Finally, they advocate for a higher level of traceability for imported products—including information on their composition and specific place of production—and oppose the use of international carbon credits within the CBAM as long as European industry cannot use them on an equal footing within the ETS.




Link to the Fertilizers Europe press release: https://www.fertilizerseurope.com/wp-content/uploads/2026/06/Joint-Statement-Key-requirements-for-an-Effective-and-Predictable-CBAM.pdf