INTERVIEW: Effective implementation by member states key to CBAM success: World Cement Association

As discussions around the EU's Carbon Border Adjustment Mechanism (CBAM) continue to gain momentum, its transparent implementation by member states at the top level and adoption of low-carbon cement at the user level in the construction chain is key to its success, Fabien Charbonnel, Director of the World Cement Association and CEO of Cem'In'Eu, said in a recent interview with Platts, part of S&P Global Commodity Insights.

The following has been edited for length and clarity.

What impact do you see on the cement trade after CBAM kicks in on Jan. 1, 2026 considering some analyst estimates show that around 30% of kilns in Europe will close once the free quotas start getting phased out?

I don't know if 30% of kilns will close, it is very difficult to say. What I am sure about is that the industrial setup will change. The reason is that to improve the level of efficiency, producers would have to invest to improve production from the carbon point of view which will need investments and producers cannot invest in all plants. So, of course, in 10 years they will concentrate on a smaller number of plants and use decentralized grinding plants to decrease clinker emissions.

It should not impact imports or exports of cement or clinker as there would be the same constraints for producers inside or outside of Europe as the cost of the carbon will be the same so the flows of imports within Europe because of CBAM or EU ETS [Emissions Trading System] will not change drastically.

As we move ahead with CBAM, the demand for supplementary cementitious materials (SCMs) is expected to grow but their availability is also a concern, so how do you expect the role of SCMs to evolve?

I agree that it is a concern. Traditional SCMs like fly ash and GBFS [granulated blast furnace slag] are byproducts of other industrial processes, and their availability will decrease because coal power plants will shut down in Europe and the future of steel and pig iron production remains unknown. If they switch to electrical processes, there won't be any more GBFS available. Of course, there are old stockpiles but those are limited amounts so if we want to decrease the clinker factor and use SCMs, we have to use other SCMs that are widely available in Europe like limestone, pozzolans where possible, and artificial pozzolan like calcined clay which uses much less energy than clinker production. We have to push for the solutions and develop new types of cement, and now we have the framework to develop these.

What barriers do you see in the adoption of CBAM?

Besides the availability of SCMs, there are other barriers. The current framework of the European standard of cement is quite wide and flexible and you can push down the clinker factor and are allowed to produce low carbon factor cement with a high level of SCMs, so there is no barrier in Europe on this side. The things that are slowing down adoption are constraints in the construction chain from different actors. When you use less clinker, the biggest issue is that you decrease the compressive strength of cement so you must change the construction process and this is what is slowing down the adoption of these new types of low-carbon cement and in some European countries, you also have constraints stemming from building regulations.

So, right now there is pressure from the top of the chain, where carbon is more expensive, and pressure from the bottom as the building owner or construction company is not convinced.

The only thing we need to make sure is that CBAM is well implemented by all countries in the EU as currently the framework has been done by the EU, but implementation is under individual member states, so they need to get it properly done.

How will the price of cement be impacted?

The industry has to understand that the essence of the policy of the EU is to integrate the carbon cost in the cost of the product and this will result in a price increase. But the common goal is to decrease carbon emissions, and the cement industry has an important role to play because of the high emissions. With average emissions of 650 kg/mt, and around 160 million mt of production in the EU, our burden is very heavy. We agree we have to do something; we agree we have to put a price on carbon, and this means the carbon price will be included in the price of cement and concrete. This is within the concept of CBAM and EU ETS so it will have a year-by-year consequence which will push the price up. It is very difficult to have a figure but roughly we are looking at an addition of around Eur100/ton so we will see cement prices nearly double 10 years from now. Also, all these new investments like CCUS are also in their pilot phase so we don't know yet what would be their impact on cost.