The European Union’s Carbon Border Adjustment Mechanism (CBAM) officially took effect on 1 January 2026. By placing a carbon price on imported goods, the policy aims to keep manufacturing from moving to countries with weaker climate rules and ensure fair competition globally. CLEPA has published a new position paper setting out the automotive supply industry’s perspective on the design, implementation, and potential downstream extension of the mechanism, calling for a framework that delivers on climate goals while remaining practical for Europe’s complex industrial value chains.
Europe’s automotive suppliers support CBAM goals, but they currently operate under severe economic pressure. Companies invest heavily to decarbonise production and supply chains, often absorbing higher costs of greener materials. Unfortunately, the current methodology does not always reflect these efforts. The limited access to primary emissions data and reliance on default values often result in outcomes that do not credit companies for the real-world progress they make.
Instead of extending CBAM further downstream, policymakers must first ensure that the mechanism functions effectively in its current form. Without clear rules, better data access, and a more consistent approach to emissions reporting, CBAM risks increasing administrative burden, compliance uncertainty, and cost pressures for European manufacturers.
In this context, CLEPA’s position paper highlights three key recommendations:
- Facilitate primary-data based declaration to reflect the investments manufacturing industries make to decarbonise their value chains.
- Ensure operational feasibility and companies’ readiness by implementing predictable and proportionate default values.
- Guarantee that any downstream CBAM extension remains evidence-based, proportionate and operationally feasible.
Download the full paper to find out more.
