As governments worldwide accelerate decarbonization efforts, the EU’s Carbon Border Adjustment Mechanism (CBAM) is emerging at the forefront of regulatory change. As part of the EU Green Deal, CBAM imposes new costs on carbon-intensive imports, significantly impacting fertilizer, hydrogen, and chemical industries. For export-driven regions like the GCC, where Europe accounts for over 10% of total chemical exports, this is a momentous regulatory development with far reaching implications. In collaboration with PwC Middle East, GPCA has published a new paper entitled “CBAM implications for fertilizers and possible extension to other sectors”. From CBAM in the context of the EU Green Deal, to its scope, including current and potential future coverage, the paper uncovers the requirements and challenges for chemical producers, the key factors influencing costs and strategic implications for compliance.



