European industry associations, including CECE, are calling on EU institutions to delay additional Carbon Border Adjustment Mechanism obligations linked to the mechanism’s ongoing revision, arguing that the current framework could expose manufacturers to major cost and contractual risks before its full impact is understood.
CECE, the Committee for European Construction Equipment, has joined other European industry associations in signing a joint statement on the EU’s CBAM framework.
Established under Regulation (EU) 2023/956, the Carbon Border Adjustment Mechanism is the EU’s system for applying a carbon cost to certain imported goods, with the aim of limiting carbon leakage and supporting the bloc’s climate objectives. The regulation has since been amended through Regulation (EU) 2025/2083, which is intended to simplify and strengthen the mechanism.
The signatory associations say they support the transition to a low-carbon economy, but argue that climate policy must remain workable and predictable for European manufacturers. Their concern is focused on companies that use CBAM-covered materials further down the value chain, including manufacturers operating with long lead times, customised projects and fixed-price contracts.
For these businesses, the issue is not only the future carbon cost itself. Manufacturers may be required to agree sales contracts before they know the final CBAM-related charges, reporting obligations or the scope of products affected by future changes. According to the associations, that lack of clarity reduces legal certainty and creates financial exposure that can be difficult to manage or pass on through contracts.
The joint statement also raises concerns about extending CBAM to downstream products. While such an extension could broaden the mechanism’s reach, the associations argue that it may increase uncertainty for companies signing long-term agreements without a clear understanding of the costs they could face later.
Their request is therefore for a postponement of the additional obligations under discussion as part of the ongoing CBAM revision, while the European Commission completes a more robust, evidence-based assessment. According to the associations, the delay would allow the Commission to use data collected during the transitional phase, assess administrative and compliance burdens, and consider safeguards for downstream users before further financial obligations are introduced.
For the construction equipment sector, where supply chains rely heavily on steel, aluminium and other carbon-intensive materials, the debate matters beyond compliance. It could affect pricing, investment decisions, contract structures and the ability of European manufacturers to compete globally.
The associations’ position is not a call to abandon CBAM. Instead, they are asking for a measured implementation that aligns Europe’s climate ambition with the need to protect industrial capacity, jobs and competitiveness.
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