Lorenzo Livraghi
Senior Adviser – Trade and Industrial Policy
The Carbon Border Adjustment Mechanism (CBAM), coupled with the phase-out of free allocation under the EU Emissions Trading System (ETS), will have a negative impact on the competitiveness of Europe’s technology industries. Technology manufacturers will face a considerable increase in the cost of key manufacturing inputs such as steel and aluminium. They will have to face competition from third country manufacturers of downstream products that are able to source raw materials at more competitive prices and export to Europe (as well as other markets worldwide) without being subject to CBAM.
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