Cbam, FederlegnoArredo: “…the European Parliament’s vote confirms the concerns”

The European Parliament’s vote on the CBAM unfortunately confirms some of the concerns that FederlegnoArredo has been highlighting for some time, translating into new costs and burdens for companies across the wood and furniture supply chain. This is particularly significant at a time when gas prices are rising from 35 to 85 euros/MWh, with a consequent increase in the cost of urea, for which gas accounts for 75 per cent of production costs.

“For months, we have been warning about the risk that an application of the CBAM that does not sufficiently take into account the specific characteristics of manufacturing supply chains could end up undermining the competitiveness of European companies,” said Paolo Fantoni, president of Assopannelli, part of FederlegnoArredo.

“The removal of Article 27a, in particular, deprives the system of an important flexibility mechanism that could be used in exceptional circumstances.

Conflicts in regions that are strategic for the supply of raw materials are already causing shortages and sharp price increases for essential substances such as urea. In this context, the introduction of additional tax burdens risks worsening a situation that is already difficult to sustain.

We therefore remain highly concerned about the decision to keep urea within the scope of the Regulation, a choice that could generate further costs throughout supply chains.”

The next stage will now be the negotiations between the European Parliament, the Council and the European Commission, and the Federation will continue working to ensure that the needs of companies are safeguarded in the final text.

“Environmental objectives,” Fantoni concluded, “must be pursued without compromising the competitiveness of Europe’s manufacturing system. We therefore expect the institutional negotiations to make it possible to address the issues that have emerged and to achieve a CBAM that is effective from an environmental standpoint while also being sustainable for companies.”