Non-Implementation of CBAM – Implications for the Cement Industry and the Environment

What impact will the renunciation of a carbon border adjustment mechanism (CBAM) have on the Swiss cement industry and thus on the achievement of Switzerland's net zero targets? A Swiss CBAM means that Swiss builders have to take CO₂ costs into account in all their cement purchasing options: they can either buy CO₂-free cement or the CO₂ content in the cement is internalised via the CBAM levy or through the purchase of emission certificates. Without a Swiss CBAM, or without other measures with a comparable effect, there is a risk that the cement industry or clinker production moving abroad. As long as builders are not willing to pay a significant premium for CO₂-free cement, CO₂-contaminated cement will continue to be used in Switzerland in future. This would jeopardise the achievement of the net-zero target. A Swiss CBAM does not protect the domestic cement industry. Builders can still import cement from Europe or third countries. However, since the same system of CO₂ emission rights exists in Europe and for imports from third countries, the CBAM surcharge at the border would create a level playing field for EU, non-EU and Swiss cement suppliers.