❗Expanding CBAM scope will:

➤Create fairer competition for low-emission alternatives
➤Prevent carbon leakage
➤Put a real price on carbon-intensive imports

👇 Read the full policy brief from Sandbag:
📄 sandbag.be/2025/11/25/c...

#CBAM #EUETS #ClimatePolicy #Decarbonisation

4/4

✅ How can chemicals be included in CBAM?

•Start with basic organic chemicals (e.g. steam cracking products)
•Add key polymers like PE, PP, PVC to prevent leakage
•Cover upstream refinery products
•Use a phased, targeted approach to expand coverage

3/4

🔍 Why this matters:

•Chemicals + refining = 173 MtCO₂e in 2023
~30% of industry emissions in the EU ETS
•Sector received 163M free allowances — worth €13 billion
•Free allocation favours carbon-intensive production and undermines low-emission alternatives

2/4

📘 Treat ship steel as a strategic circular feedstock — not just waste.

🏛️ Industrial decarbonisation must go beyond emissions targets — to securing the materials that make clean steel possible.

🔗 Full report: sandbag.be/2025/11/20/s...

4/4

But a shortage of premium scrap — and policy gaps — are holding back clean steelmaking.

📌 We call on EU policymakers to:
→ Align ship recycling with EU Waste rules
→ Improve traceability
→ Invest in EU recycling hubs
→ Align with the Circular Economy Act
and Clean Industrial Deal

3/4

📊 The report finds:

• Retiring EU/EFTA ships could supply up to 20% of Europe’s scrap steel needs
• Up to 95% of a ship’s weight is recoverable as high-grade steel
• 10–15 Mt/year of scrap potential
• Ideal for flat steel via EAF–DRI — more traceable than imports

2/4

✅ The coalition calls for:

• A halt to ICC expansion until reformed
• Updated CO₂ factors based on real marginal emissions in each bidding zone

📩 ETS revenues must fund real decarbonisation, not fossil subsidies.
👇 Read the letter:
sandbag.be/2025/11/13/i...

4/4

⚠️ What’s wrong with the proposal?

• Subsidies to sectors with low carbon leakage risk
• Compensation based on fossil fuel averages, not real-time grid mix
• ❌ No obligation to invest in clean tech or cut fossil energy use

3/4

💶 In 2023, nearly €4bn in ETS revenues were spent on ICC — 16.4%+ of the total.

Now, the Commission plans to double the number of eligible sectors and keep using outdated fossil CO₂ factors — risking further diversion of funds away from climate action.

2/4

👇 Read it here:
sandbag.be/2025/11/12/s...

👇Read it on European Commission portal: ec.europa.eu/info/law/bet...

#RecycledContent #Decarbonisation #CleanSteel

4/4

• Scrap classification and certification
• Minimum recycled content requirements for all steel on the EU market, including imports

❗The Act can address systemic fragmentation and support low-carbon steel production by aligning policy incentives with circular material use.

3/4

Sandbag’s submission focuses on the carbon-intensive flat steel sector, where scrap remains underused despite its decarbonisation potential.

📌 Recommendations include:

• Design-for-recyclability obligations
• Avoid downcycling/export of high-grade scrap
• Improve traceability tools

2/4

✅ To deliver real climate benefits, electrification must be strategic and flexible — with new renewables added on top of what’s already needed to decarbonise power grids.

❌ Otherwise, the EU risks locking in fossil-fuel output for years

👇Read our report
sandbag.be/2025/06/12/g...

3/3

Sandbag’s Getting Electrification Right warns:

If electricity demand rises faster than renewable supply, fossil generation fills the gap.

❗Industrial electrification without flexibility risks induced emissions — more fossil, not less.

2/3

✅ CBAM can work for Africa — it supports a shift to cleaner production

🏭 Lower emissions = fewer costs
📦 Competitive exports
💡 Long-term industrial advantage

👇 Read Sandbag’s chapter (pp. 59–60):

sandbag.be/wp-content/u...

#CBAM #CarbonMarkets #Africa

3/3

📊 Net CBAM costs for Africa could fall to €670M — even without cleaner production — thanks to higher EU selling prices. 🌍

A 50% carbon price of the EU price in Africa could flip this into a €134M net gain.

📈 Aluminium = gain
⚠️ Steel & fertilisers = net costs

2/3

4/4

This would:

✔️ Incentivise clean electricity
✔️ Prevent windfall profits
✔️ Cut costs for Member States
✔️ Align with a CBAM extension to indirect emissions

📄 Read our full response:

🔗 sandbag.be/2025/08/21/s...

#CBAM #CarbonMarkets