Source: European Parliament
The Carbon Border Adjustment Mechanism (CBAM) will ensure that the carbon price of cement imported into the EU is equivalent to the carbon price of domestic production under the EU Emissions Trading System (EU ETS).
Under the EU ETS, the number of free emission allowances declines over time for all sectors. For CBAM sectors like cement, the decline accelerates as from 2026 to maximise the impact of the ETS in fulfilling the EU’s climate goals.
In line with the phase-out of the allocation of free allowances under the EU ETS, the CBAM financial adjustment is phased in gradually.
As required by the CBAM Regulation, a report on the application of the CBAM is foreseen in 2025 before the end of the transitional phase[1].
In view of the expiration of the Autonomous Trade Measures for Ukraine in June 2025, the Commission is working on a review of reciprocal trade liberalisation under Article 29 of the Association Agreement.
However, since cement was already fully liberalised by the original Association Agreement, it was not affected by the Autonomous Trade Measures nor is it within the scope of the review.
The Commission is aware of the challenges that companies and households face due to high energy prices. The EU has jointly responded to Russia’s energy market manipulation and the subsequent high inflation.
The energy dimension of the Clean Industrial Deal and the forthcoming Action Plan for Affordable Energy will address the high energy prices and aim at unlocking all possible decarbonisation pathways for EU industries. Further fuel switches and energy efficiency improvements can also help to reduce energy costs.
- [1] Regulation (EU) 2023/956, Article 30(2).