Asian Development Bank report on value-chains decarbonisation and CBAM

“While CBAM serves as a tariff on foreign producers, it will also raise the cost of raw materials such as steel and fertiliser for downstream EU manufacturers, and could even give them an incentive to relocate more production capacity overseas, including Asia, the ADB report warned”.

This has been the constant position of FACE, and our association proposed to replace CBAM by full trade liberalisation of low carbon raw aluminium and by the creation of a super-EU “IRA” instrument, redirecting already budgeted or pledged finance. Such a new stimulus tool should be administratively simple and agile and should offer fast-track and assisted access to SMEs.