CBAM's Impact on Urea Imports Threatens EU Panel and Furniture Industries
The Carbon Border Adjustment Mechanism (CBAM) could disrupt the Italian and European particleboard industry reliant on urea, affecting competitiveness. Assopannelli and the European Panel Federation warn that while CBAM aims to prevent carbon leakage, it may harm sustainable sectors. The urea tax increases costs by €40-60 per ton, potentially raising production costs by 10-12% for wood panels. With EU urea production meeting only 20% of demand, reliance on imports is critical. The European Commission considers temporary exemptions amid pressures from farmers and manufacturers.
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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.
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