CBAM

Policy areas / Climate & Energy / CBAM

CBAM

CBAM efficiency at covering complex products and complex
value-chains is still to be demonstrated.

In brief

In 2023, the European Union adopted a new regulation introducing a carbon border adjustment mechanism (CBAM) next to the EU Emission Trading Scheme (EU ETS). The mechanism is meant to ensure that the prices of imported goods reflect their carbon content. Under this regulation, importers must surrender carbon certificates corresponding to the carbon price that would have been paid had the goods been produced under the EU’s carbon pricing rules (EU ETS).

Why is it important

Although the CBAM regulation does not include the continuous filament glass fibre products, these could be covered later in a revision of the scope. The CBAM has been initially designed to include non-complex products with a high trade exposure. Provided the mechanism can efficiently cover more complex products and complex value-chains, the CBAM could be an effective instrument to promote climate efforts globally while providing a carbon price signal on the EU market.

Our view

A number of uncertainties surround the CBAM, in particular its capactity to effectively ensure a level-playing field in all industrial sectors. Glass fibre products are integrated into complex products and the sector and its value chain have a history of unfair trade competition on the EU market and circumventions of trade measures. Therefore, Glass Fibre Europe members call on the legislator to consult the association to identify how to ensure the sector will be effectively protected against the risk of carbon leakage should it be integrated in the CBAM.

Supporting documents