Competitiveness and Resources for Industry Transition – Stakeholder Perspectives

The EU and the UK have recently developed Carbon Border Adjustment Mechanisms (CBAM) to account for the carbon cost embedded in imported products. Yet, questions remain regarding the efficiency of the mechanisms to adequately address carbon cost differences and incentivise the transition to clean processes.  In this project, DIW Berlin, CETEx, and their European partners gathered the perspectives of industrial stakeholders about potential reform options and how they could better align with industrial decarbonisation goals while addressing competitiveness concerns.

A series of semi-structured interviews were conducted with industry stakeholders across Europe, representing basic material producers and users across four sectors: steel, aluminium, cement, and organic chemicals. Four policy options were particularly investigated: the scheduled CBAM phase-in, extending free carbon allowances, green lead markets, and a CBAM reform toward standardised values. Additionally, a workshop in Brussels with 36 participants, including policymakers, industry representatives, academics, and think-tank experts, allowed for joint exploration of CBAM reform proposals, particularly around standardised emission values.