Germany’s industrial giants in chemical and car making are already criticising the bureaucratic strain expected from the EU’s controversial Carbon Border Adjustment Mechanism (CBAM).

CBAM would apply the same carbon costs to imported products as would be incurred by EU companies in order to ensure that EU produced goods are not made more expensive by following environmental regulations than imported goods. The policy is due to be phased in from 2026, starting with steel, iron, cement, aluminium, electricity, hydrogen, and fertiliser.

However, several groups from Germany’s industrial sector are not happy. An example is Wolfgang Große Entrup, head of the chemical industry association VCI, who said of the CBAM: “What else do we think we can burden the industry? The bureaucratic madness caused by CBAM is unbelievable, the path in the world is once again uncoordinated and the success of climate policy is more than doubtful.”

He continues that there should not be “constantly new regulations and laws that not only completely overload our companies, but also take away international competitiveness step by step, day by day, and thus drive them abroad. Our companies simply don't have the air to breathe! Politicians in Germany and Europe must wake up NOW”. Citing the UK and France as examples of countries that have, in his mind, effectively become industrial museums.

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