As current high energy and other costs were not enough, another blow is coming from the EU on European industry.
On January 1st, the infamous Carbon Border Adjustment Mechanism of the EU entered into force. Targeting especially China, the CBAM is a tax (tariff) on imported goods whose production do not comply with EU Carbon emission standards. The CBAM mechanism does not affect all imports, but initially focuses on the most carbon-intensive industrial sectors at greatest risk of relocation. The goods currently involved include cement, steel products (iron and steel), aluminum, fertilizers, electricity, and hydrogen. Companies operating in these sectors must manage a complex set of regulatory requirements. In addition to obtaining prior authorization, they will have to submit an annual declaration (the first, relating to 2026, will be due on May 31, 2027) indicating the quantities of goods imported and the related embedded emissions. This will have a further concrete impact on companies in the sector that need to collect certificates from non-EU suppliers, which do not always have regulations similar to those in Europe for the export of these raw materials.
