CEMBUREAU, the European Cement Association, welcomed the trilogue agreements struck by EU negotiators on the EU Emission Trading Scheme (ETS) and the EU Carbon Border Adjustment Mechanism (CBAM).
“The agreements on CBAM and ETS are essential to create a global level playing field on CO2 and support our sector in its transition to carbon neutrality. It is positive that the EU institutions strengthened some key aspects of CBAM”, commented Koen Coppenholle, CEO of CEMBUREAU.
“We however regret that the adopted texts do not provide a structural solution for exports. Some countries export up to 50 per cent of their domestic cement production and these will be at risk should no concrete export solution be found before 2026”.
“Looking ahead, we need to focus on CBAM implementation and its watertightness, to ensure the mechanism fully equalises CO2 costs between EU and non-EU suppliers”, added Mr Coppenholle. “It is also essential that policymakers support EU industries like cement, which are confronted with unsustainably high energy costs at a time some of our trading partners are launching massive subsidy programs. CBAM, ETS and a strong innovation fund are essential part of the puzzle, but we look forward to Commission proposals for a truly ambitious industrial policy, as requested by the European Council in its meeting of 15 December.”
Analysts UBS commented," We think a likely outcome will be capacity rationalisation in Europe, with smaller and older plants that have no credible path towards Carbon Capture and Storage (CCS) (eg due to geographic location) likely being shut.
"Ultimately the most efficient import capacity will be competing with the least efficient domestic capacity under a CBAM regime, with CO2 becoming one of the biggest drivers of relative competitiveness."
