CBAM's Impact on Urea Imports Threatens EU Panel and Furniture Industries
The Carbon Border Adjustment Mechanism (CBAM) may negatively impact the Italian and European particleboard industry, which heavily uses urea in adhesives. Assopannelli and the European Panel Federation have raised concerns that CBAM, intended to protect European companies from carbon leakage, could have the opposite effect on sustainable sectors.
Urea, essential for fertilizer production, is included in CBAM, resulting in price increases of €40-60 per ton. Production costs for wood panels may rise by 10-12% within four years. The EU currently imports over 80% of its urea needs.
Recent analyses suggest that the CBAM will affect only 0.1% of EU import values, but specific sectors like steel, aluminum, and urea may see significant impacts. The European Commission is considering temporary exemptions due to pressures from farmers and industry stakeholders.
