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EU car industry warns: CBAM expansion may increase costs and administrative burden

EU car industry warns: CBAM expansion may increase costs and administrative burden

The European Automobile Manufacturers Association (ACEA), the European Automotive Suppliers Association (CLEPA) and Tyres Europe have called on EU policy makers to adopt a more limited and proportionate extension of the carbon dioxide Regulation mechanism (CBAM) to processed products, warning that current proposals could lead to increased carbon dioxide emissions. costs and administrative burdens throughout the value chain in the automotive industry.

In a joint letter in a statement released ahead of upcoming interagency negotiations on expanding the scope of CBAM, the associations stated that they support the purpose of the mechanism to prevent carbon leakage, but argue that processed products should only be included when a significant risk of carbon leakage has been demonstrated and when the required methodology, emission data, and and the possibilities проверки.

The associations stated that the proposed implementation date of 2028 is too early, as more time is needed to assess how the existing CBAM system works in practice before significantly expanding its scope. According to the letter, the list currently under discussion covers hundreds of CN codes and goes beyond what the associations consider to be a technically sound approach. Instead, they called for an expansion focusing on products at the greatest risk of carbon leakage and using the least amount of relevant precursors needed.

The multiple costs of carbon emissions in the automotive value chain стоимости

ACEA CLEPA and Tyres Europe also warned that car manufacturers are already facing rising costs for steel and aluminum produced in Europe., are related to carbon emissions. They argued that extending CBAM to subsequent products without proper precautions could lead to multiple carbon costs throughout the value chain and shift the risks of carbon leakage from upstream producers to downstream producers.

Associations have also called for a simplification of compliance requirements, including more proportional defaults and easier reporting of primary emission data. Car importers operating within long and complex supply chains may have limited opportunities to obtain actual emissions data from upstream suppliers and, therefore, may have to rely on default values.

They also required that CBAM default values reflect different production routes, particularly for aluminum scrap and post-consumption waste. According to the associations, using a single default value without distinguishing between primary and secondary production may hinder recycling.

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