EU cement importers may face high CBAM costs

Spanish Market: Cement
20/05/26

European importers likely will have to use punitive default values to cover their 2026 cement imports because of high barriers to obtaining verified carbon emissions data before the deadline in September 2027, a carbon compliance consultancy warns.

There is a "false sense of security" among some companies that they will be able to use verified emissions values, Carboneer managing director Hendrik Schuldt told delegates attending the Argus Mediterranean Solid Fuels Forum in Ostuni, Italy, on 12 May. "Our general assumption is that companies have to use default values."

The cost difference between using verified data and default data is stark. A company importing 10,000t of grey Portland cement from Ukraine in 2026, at a carbon border adjustment mechanism (CBAM) certificate price of €75/t, would pay €195,000 using the actual emissions of this supply, assumed to be 0.91t of CO2 equivalent (CO2e)/t. But it would owe €663,000 in CBAM costs under the default value for Ukraine, which is 1.51t of CO2e/t.

A number of factors make it unlikely that actual verified data will be available to use for 2026 imports. There is a "very short timeline" for producers to get their 2026 emissions verified. This work is only able to start on 1 January 2027, but it must be completed by September of next year. The availability of auditors is also unclear. And verification will only be possible if companies have an emissions monitoring plan in place.

"That is a problem, because many of the producers worldwide who have not been exposed to this kind of logic do not have monitoring systems", Schuldt said. "This will delay the whole process or even make it infeasible."

Another factor for companies to consider is that starting in 2027, they will be required to hold CBAM certificates covering 50pc of year-to-date emissions totals for all imports, reviewed quarterly. Ultimately this 50pc requirement could be based on the CBAM certificates surrendered during the previous period, which could be based on the lower, verified emissions values. But during 2027, this option will not be available. Companies will have to bank 50pc of expected CBAM certificates based on the punitively high default values, even if they have met all the requirements to use verified data.

"That means in ‘27, you have to reserve a lot of liquidity to fulfil this requirement," Schuldt said.

By Lauren Masterson

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07/05/26

Clinker exports to W Africa increase in 1Q

London, 7 May (Argus) — A booming construction market supported higher demand for clinker in West Africa in the first quarter, causing exports to the region to rise sharply. Exports of clinker to West African countries increased by 21pc on the year to 3.53mn metric tonnes (t) between January and March, according to export data from the countries' trade partners compiled by Global Trade Tracker (GTT). Demand from key importers was underpinned by rising cement production capacity and sustained investment in construction. Shipments to Ghana — typically the region's largest clinker importer — reached 1.36mn t, up by 30pc from a year earlier. Ghana accounted for about 39pc of clinker shipments into West Africa. Demand growth in Ghana is closely tied to large public infrastructure programmes and rapidly expanding building and road construction. The Ghana Chamber of Construction Industry last year called for an increase in domestic production, highlighting structural supply shortages and reliance on clinker imports, confirming strong demand across the sector. Dispatches to Ivory Coast, which held a 31pc share of the regional market, grew by 71pc on the year to 1.08mn t. Roads and residential construction in Abidjan, development of logistics infrastructure at the port and public works continued to support demand in the country. Guinea was the fastest-growing importer, with shipments more than doubling on the year to 476,000t during the quarter. Exports to Mauritania rose by 63pc to 110,000t. On the other hand, deliveries to several other markets declined over the period. Supplies to Togo and Liberia fell by 19pc and 27pc to 233,100t and 127,800t, respectively. Shipments to Mali, Burkina Faso and Benin dropped by 37pc, 82pc and 52pc to 60,000t, 44,200t and 38,000t, respectively, showing weaker demand in smaller and landlocked markets. Clinker suppliers shift On the supply side, stronger demand in West Africa coincided with significant changes in exporter dynamics. China reemerged as a dominant clinker supplier, aided by competitive pricing, weaker domestic demand and surplus production capacity. China exported 1.42mn t of clinker to the region during the quarter, up from 117,500t a year earlier, GTT data show. Vietnam also sharply increased shipments to 878,300t in the first quarter, up from 130,000t a year earlier. But firmer domestic and regional demand limited spot availability at the start of the year, while tight vessel availability and higher freight costs constrained flows to more distant markets, including West Africa. Pakistan and Egypt raised exports by 75pc and 36pc on the year to 317,000t and 183,300t, respectively, maintaining their presence in the region. In contrast, Turkey — another traditional supplier — cut exports by 73pc to 143,800t. The decline reflects stronger competition from lower priced Asian material, along with a shift towards alternative destinations and higher margin cement sales. By Alexander Makhlay Cement exports to W Africa (by buyer) ’000t Cement exports to W Africa (by seller) ’000t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Turkey cement makers warn CBAM may block trade

24/03/26

Turkey cement makers warn CBAM may block trade

London, 24 March (Argus) — Turkey's cement industry has warned that the EU's Carbon Border Adjustment Mechanism (CBAM) risks becoming a non-tariff trade barrier if Brussels sticks to punitively high default values for carbon emissions intensity without providing a means for exporters to verify actual emissions. The default emission values imposed on countries without EU-approved data significantly inflate CBAM-related costs for Turkish clinker and cement exports, the Turkish Cement Manufacturers' Association (TurkCimento) said. The EU did not specify cement product default values for Turkey, the largest supplier of clinker and cement to the EU , leaving its shippers to be classified under the "other countries" category. These would charge importers based on a default of 1.551t of CO₂/t of Turkish clinker , although exporters' actual emissions reported during the CBAM transition period averaged only 0.88t of CO₂/t of clinker. While the default values are designed to be punitive to encourage companies to verify their actual emissions, the process to do so remains unclear. Slow verification timelines and limited accredited verifier capacity could delay registering actual emissions in the CBAM system. The association therefore pressed the EU to use actual emission data until the verification infrastructure becomes fully operational. It also suggested that Turkey should be assigned a country-specific default value based on data from Turkish plants produced under a longstanding monitoring, reporting and verification (MRV) framework aligned with EU requirements. "To prevent CBAM from becoming a de facto trade barrier, national values based on EU-aligned MRV data should be used instead of general ‘Other Countries' default values", TurkCimento chief executive Volkan Bozay said. Under the current default values that apply to Turkey, the carbon cost per tonne of clinker jumps from about €20/t ($23.20/t) to €80/t. This is almost twice the price of clinker on an fob Turkey basis, which Argus assessed for February at $44-48/t, "directly threatening the economic sustainability of exports", Bozay said. These higher costs would also be passed on to EU consumers through higher cement and downstream construction material prices. All Turkish facilities use low-emission dry process kilns. Turkish producers are also working to expand renewable electricity use, which would further lower embedded emissions, but the benefits would be lost if EU systems do not recognise verified plant-level data. "Within the scope of CBAM, there is need for clear rules that will allow these investments and the declared actual production data to be recognized in indirect emission calculations." Bozay said. By Alexander Makhlay Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia should have CBAM on some commodities: Review

13/02/26

Australia should have CBAM on some commodities: Review

Sydney, 13 February (Argus) — Australia should consider introducing a carbon border adjustment mechanism (CBAM), starting with imports of cement and clinker and potentially expanding to products such as hydrogen, steel, and ammonia and derivatives like urea and ammonium phosphate, according to a key report released by the government today. The identified commodities face risk of future carbon leakage from imports, which could lead to greenhouse gas (GHG) emissions being relocated from Australia to overseas. The carbon leakage review , led by Australian National University professor Frank Jotzo between July 2023 and March 2025, assessed leakage risks in 2030 for all 75 trade-exposed commodities under Australia's safeguard mechanism across 42 commodity groups. The review was announced as part of the 2023 reform of the safeguard mechanism While current safeguard mechanism settings are effective at mitigating carbon leakage risk in the short- to medium-term, the declining emissions baselines under the scheme could put some of the identified sectors at a "more significant" risk over time, according to the report. Cement and clinker first, others to follow Risks are higher for cement and clinker, and the implementation of a border carbon adjustment for these products "is likely to be simplest," according to the report. Australian production of lime and glass, on the other hand, is only partially covered under the safeguard mechanism, and a CBAM application would face more complexity. Hydrogen, steel, and ammonia and derivatives carry material carbon leakage risks, but feature more complexity with respect to production methods, supply chains, and product diversity. Some of these products are also only partially covered by the safeguard mechanism. The government should also consider potential risks for a second group of commodities, consisting of aluminium and alumina, refined petroleum, and pulp and paper. These products face mixed evidence related to leakage risk indicators and analysis of trade and investment leakage, but the government could assess them in the forthcoming review of the safeguard mechanism scheduled for the July 2026-June 2027 financial year and consider particularly the suitability of arrangements for emissions-intensive trade-exposed activities for all commodities under the scheme. Preference for fees instead of ACCU surrenders The safeguard mechanism covers over 200 individual facilities emitting more than 100,000t of CO2 equivalent (CO2e) in a compliance year across the oil and gas, mining, manufacturing, transport and waste sectors. Facilities earn Safeguard Mechanism Credits (SMCs) if their reported scope 1 emissions fall below their baselines, and must surrender SMCs or Australian Carbon Credit Units (ACCUs) if emissions exceed the threshold. If the Australian government decides to pursue a CBAM, it should consider applying liabilities only to scope 1 emissions that exceed the relevant safeguard mechanism baseline at the time of import. The assessment should be based on explicit carbon prices only, and the liability should account for the differences between the effective carbon price paid in the originating country and an Australian benchmark price. While importers could, in principle, clear the liability by paying a fee or surrendering ACCUs, there was "broad support" for the fee option during the consultation, according to the report. Surrendering ACCUs would more closely reflect domestic requirements, but trading in ACCUs has legislative requirements that would have to be met by importers which would require careful consideration, the report warned. The ACCU purchase option would create additional demand for the product, raising prices. But stakeholder feedback "reflected concerns about the potential impact on ACCU supply" if these carbon credit units were used to meet carbon border adjustment liabilities. The government should not consider a carbon border adjustment that provides rebates for exports, as that would be inconsistent with Australia's emissions reduction targets and could raise considerable international trade law concerns. "Rebating emissions obligations to exports would effectively exempt production for export from emissions reductions obligations, running counter to overall policy objectives towards net zero and increasing the required emissions reductions elsewhere in the economy," the report read. Teba provisions could be removed Trade-exposed, baseline-adjusted (Teba) facilities operating in emission-intensive sectors that might face unfair competition from imports from countries with weaker or no emission reduction policies currently benefit from discounted baseline decline rates under the safeguard mechanism. Decline rates can be as low as 2pc for non-manufacturing sectors or 1pc for manufacturing sectors, compared with the standard 4.9pc/yr declining rate until 2030. The Teba provisions for a commodity should be removed once a border carbon adjustment is fully implemented for that commodity, according to the review. Limited impact on downstream activity The report also noted that analysis indicates the impact of a carbon border adjustment on downstream activity, such as construction, would be "very limited". "The review's analysis suggests that the maximum price impacts on final goods that incorporate commodities that may be subject to a border carbon adjustment, such as wind farms, house construction and crops like wheat, would be vanishingly small as a share of product prices," the report said. The government said today it will continue to consult on carbon leakage with affected industries, and will consider the report's recommendations in the safeguard mechanism review. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

European cement prices expected to rise in 2026

10/02/26

European cement prices expected to rise in 2026

London, 10 February (Argus) — European cement producers may raise domestic prices this year due to higher imported cement prices and cost pressures related to the EU's carbon border adjustment mechanism (CBAM) and emissions trading system (ETS). Some European producers and traders aim to increase cement prices by 10-15pc in 2026 from last year, market participants said at the Intercem conference in Dubai last week. A larger price increase is possible in subsequent years when CBAM costs for imported cement and clinker rise substantially. EU cement prices were most recently in the mid-to-high $100s/metric tonne (t) on an ex-works or fob basis, depending on the country and destination. CBAM costs for imported cement and clinker from Turkish or Egyptian origins are expected to be about $12-20/t, market participants said, once a supplier's emissions are verified and depending on the supplier's carbon intensity. With bulk cement prices from Turkey in the mid-to-high $50s/t on an fob basis, and freight costs typically around $15-20/t, this still puts imported cement at a discount. But the high levels of uncertainty on CBAM costs should nevertheless drive more buyers to domestic supplies. Many EU cement producers rely on imported clinker from non-EU suppliers in the Mediterranean, and those suppliers will "obviously" raise cement prices as clinker costs go up as a result of CBAM, one trader said. But even those cement companies that do not import clinker are unlikely to keep prices steady if their competitors are raising prices because of higher clinker costs, he said. European cement producers are also facing rising energy and carbon-compliance costs that will likely lead them to raise prices, unless policymakers take steps to address rising costs. In a joint statement released on 2 February, a group of European energy-intensive industries, including cement makers, called on the EU to issue emergency measures, such as suspending further carbon benchmark reductions under the ETS, to avoid a further loss of competitiveness and plant closures. EU leaders are scheduled to hold an informal meeting on competitiveness on 12 February. By Alexander Makhlay Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Vietnam seaborne cement supply tightens

10/02/26

Vietnam seaborne cement supply tightens

London, 10 February (Argus) — Several Vietnamese cement suppliers are sold out for much of the year, according to comments made at the Intercem conference in Dubai last week, as stronger domestic and regional demand has limited spot availability. Securing Vietnamese volumes has now become challenging, one trader said. Higher public spending and residential construction demand in the domestic market has led some Vietnamese sellers to sharply increase export prices since the beginning of this year. Some producers, including Vicem Ha Tien, SCG Vietnam, Insee Vietnam, Fico YTL and Vicem Ha Long, also raised domestic cement prices by around $4/metric tonne (t) in January, according to the Vietnam Chamber of Commerce and Industry. Producers pointed to rising energy and raw material costs as additional factors behind the price adjustments. Vietnamese cement makers have been increasingly exporting to the US and other markets over the past five years because of excess supply after Chinese demand declined. The country delivered its first 122,300t to the US in 2019 and increased supply steadily to 4.47mn t in 2025, up from 1.12mn t in 2020. This cement has traditionally been offered at a significant discount to other origins such as Turkey. In recent months, Vietnamese cement has been offered at around $75-$85/t cfr US Gulf coast, compared with $90/t cfr or higher for Turkish cement. Fob prices were heard in the high $30s/t, although one US buyer heard fob prices significantly higher than this, potentially because sellers do not have excess tonnes for export. Although Vietnamese cement makers have room to boost exports, with most plants operating at just 60-80pc utilization and installed cement capacity exceeding 120mn t, producers remain primarily focused on the domestic market and only export surplus volumes, a market participant said. Lower exports from Vietnam to the US are likely to support demand for Turkish supply, which is expected to rely more heavily on the US market after the EU implemented its Carbon Border Adjustment Mechanism (CBAM) this year. The CBAM policy imposes a cost on imports to the EU from outside the region and could lead Turkish sellers to redirect much of the roughly 3mn t they supplied to the EU in 2025. Cement offers from Turkey to the US have already increased since the start of this year because of reduced competition from Vietnam and as CBAM "limits shipments to Europe", the trader said. By Alexander Makhlay Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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