Reforming CBAM with Europe’s critical net-zero technology in mind

Reforming CBAM with Europe’s critical net-zero technology in mind

We call on the European Parliament and the Council to amend the European Commission’s proposals for regulations to amend the CBAM Regulation as regards the extension of its scope to downstream goods and anti-circumvention measures, and establishing the Temporary Decarbonisation Fund.

T&D Europe members are deeply concerned about the impact of CBAM on the competitiveness of Europe’s transformer manufacturing industry.

Transformers are indispensable for Europe’s electricity grids, industrial electrification and security of supply across Europe. As developers, providers and manufacturers of strategic net-zero technologies for Europe’s critical electricity system, we call for amendments to avoid the weakening of a strategic European industry that is critical for the success of the clean energy transition.

Diederik Peereboom, secretary general, said: “Our most important request to Members of the European Parliament and Member State representatives is to include transformers, laminations and cores in the list of goods and greenhouse gases in Annex I of the CBAM Regulation. EU legislators need to address the real risk of placing EU transformer manufacturers at a disadvantage compared to non-EU producers. To avoid further increasing the already growing competition from non-EU manufacturers, the EU needs to level the playing field by expanding CBAM’s product scope to include transformers, reactors, cores and laminations, which are currently excluded but face significant carbon leakage risk. Not including imported power transformers from CBAM therefore creates a significant, regulatory asymmetry and strong incentives to relocate transformer manufacturing outside the EU27.”

Exempting the vast majority of grid relevant transformer imports from CBAM risks entrenching carbon leakage while weakening a strategic European industrial base essential for grid expansion, electrification, renewable integration, and digital infrastructure. This will undermine both climate objectives and the resilience of the EU energy system.