Our Scientific Advisory Committee (SAC) member, André Bardow, and his team have published an analysis (currently under review) assessing the effectiveness of the EU’s Carbon Border Adjustment Mechanism (CBAM) using a Life-Cycle Assessment of global chemical production facilities.
Key Updates:
🔵 The CBAM is an EU initiative designed to prevent carbon leakage and support the transition to net-zero emissions. With plans to extend CBAM to the chemical sector by 2030, its effectiveness remains uncertain, particularly since it currently applies to specific product categories but excludes transformed products, many raw materials, and a wide range of chemicals.
🔵 The analysis uses a Life-Cycle Assessment of 4,470 global chemical production facilities and shows that CBAM currently covers only 50–60% of emissions for key products like ethylene and polyethylene, potentially undermining its objectives.
🔵 The study emphasises the need for CBAM to (1) include fossil feedstocks and refinery products and (2) implement high fallback default values for embodied emissions to encourage data reporting and protect the EU from carbon leakage. Additionally, it highlights the importance of placing a fair price on virgin fossil carbon and creating at least a level playing field with sustainable alternatives such as Carbon Capture and Utilisation (CCU), while also promoting CCU products domestically.
The approach proposed in this analysis can help inform future discussions on improving carbon tracking in products, ensuring the effectiveness of CBAM, and strengthening the EU’s climate policies. Effective supply chain tracking and expert consultation remain crucial for a fair and efficient transition.
Find the analysis here.
More on our SAC here.
