CEMBUREAU states concern for CBAM Fit for 55 package

CEMBUREAU states concern for CBAM Fit for 55 package
24 June 2021

The European cement industry fully supports the objectives of the European Green Deal, says the industry association, CEMBUREAU. In its Carbon Neutrality Roadmap, the cement sector commits to CO2 emissions reduction targets by 2030 and works towards achieving carbon neutrality by 2050. To achieve these objectives, establishing viable business cases that secure continued growth and employment in Europe is essential. Having the first carbon-neutral cement plant in the European Union within the next decade is within reach.

While the cement industry supports the concept of a Carbon Border Adjustment Mechanism (CBAM), CEMBUREAU is concerned by messages coming out of the European Commission that, as part of the Fit for 55 package, the level of free allowances for industry may be significantly reduced for sectors covered by CBAM. "It is vital that the Fit for 55 package does not endanger the investment decisions and projects made by European cement companies and prevents significant competition distortions with third countries, said CEMBUREAU.

CEMBUREAU states the package must ensure that free allocation under the EU ETS fully co-exists alongside CBAM for an appropriate transition period lasting until 2030. It should ensure a fully comparable CO2 cost basis, covering both direct and indirect emissions, between EU and non-EU cement suppliers so that carbon leakage protection is not weakened. CEMBUREAU also request that it provides for a CO2 charge exemption for EU exporters to third countries, if the country in question is not covered by an equivalent carbon pricing mechanism. There should be a solid monitoring and verification system for assessing emission levels in third countries.

In addition, CEMBUREAU states the package must Include a sufficiently broad number of sectors in CBAM to avoid market distortions, both in terms of ETS coverage and on downstream markets. Furthermore, it should ensure consistency between the different legislative initiatives under the Fit for 55 package and the timely development of secondary legislation before the full introduction of CBAM.

In the absence of these essential elements being part of the Fit for 55 package, the conditions for the cement industry to develop a sound business case for investments in Europe and its crucial role in supplying the downstream concrete and construction market, would be seriously compromised, remarked CEMBUREAU.

Published under Cement News