Cement is among the most difficult industries to decarbonise because nearly 60 % of its CO₂ emissions come from limestone calcination, an inherent chemical process.
On average, one tonne of cement emits 0.6–0.9 tonnes of CO₂, making the industry responsible for around 2.3 Gt CO₂ annually — 7 % of global emissions.
By including cement in CBAM, the EU and UK aim to disincentivise carbon-heavy imports and foster innovation in low-carbon binders and carbon capture.
Yet downstream industries — construction, real estate and infrastructure — will inevitably face higher material costs. Policymakers and companies must therefore navigate the trade-off between meeting climate targets and keeping housing and infrastructure affordable.
At CFP Energy, we help businesses meet their carbon obligations within CBAM.
As ETS specialists, our team can provide expert insights, as well as instant access to CBAM certificates, to assist businesses that import cement.
Contact our energy team to see how we can help you access CBAM certificates and avoid the cost burden of non-compliance.
The Carbon Border Adjustment Mechanism (CBAM) was devised to address the carbon emissions embedded in cement, along with other materials such as iron & steel, aluminium, fertilisers, electricity, and hydrogen.
It does this by placing a carbon price on cement imported into the EU, thereby bringing the material in line with the carbon levy already paid by EU cement producers under the Emissions Trading System (ETS).
Levelling the Playing Field: Carbon Pricing on Cement
By placing a carbon price on imported cement, CBAM aims to ensure that cement imports are subject to the same environmental costs as goods produced within the EU.
The purpose of this is to prevent carbon leakage. This occurs when companies, in this case, cement producers, divert manufacturing to countries with weaker climate policies to avoid facing regulations that place a cost - or carbon price - on their greenhouse gas emissions.
By placing a carbon price on imported cement, CBAM ensures that these imports are subject to the same environmental costs as goods produced within the EU. This helps level the playing field by encouraging sustainable production throughout the world, regardless of location.
Although CBAM may present a challenge to cement importers in the short term, in the long term, this carbon levy presents an ideal opportunity to decarbonise.
Because CBAM puts a price on the carbon content of imported cement, this makes high-emission imports less competitive, helping to incentivise more energy-efficient production methods, as well as the development of more sustainable materials like geopolymer or carbon-cured cement.
CBAM Cement UK - Navigating the Specific Hurdles for Cement Importers
The cement supply chain faces several critical challenges under the new carbon border mechanism, from data collection and financial impact to compliance. The next section will address these issues, highlighting each new hurdle that cement importers now face.
Emissions Data Collection
The need for cement importers to submit emissions data poses the most immediate challenge.
Importers of CBAM-covered goods, like cement, must report their actual embedded emissions every quarter. However, in practice, this can prove difficult. Supply chains often lack transparency in emissions reporting. Meanwhile, third-party verification – a key requirement of emissions reporting within CBAM – can add further complexity to the process, generating administrative costs and potential bottlenecks to meet these requirements.
To avoid these issues, importers must establish robust data collection systems across multiple suppliers. Importers should submit a structured data request using the official EU CBAM Communication Template for Installations to their key suppliers. This will ensure any data you collect conforms to EU standards, while your data set as a whole is consistently formatted.
Financial Impact
The financial impact of CBAM will intensify from 2026 onwards. CBAM certificates must be purchased to cover carbon-intensive imports. Because certificate costs link directly to the carbon intensity of imported cement, this increases the overall cost of cement imports and influences long-term procurement strategies based on low-carbon alternatives.
Price volatility in carbon markets is also likely to create budgeting challenges. EU CBAM certificates are linked to the average weekly price of Emission Trading System (EU ETS) allowances. This means that importers will not have the benefit of cost certainty: prices are likely to fluctuate based on supply and demand, policy changes, energy trends, and even weather.
Regulatory Complexity
The regulatory complexity of CBAM represents another barrier for importers. Compliance frameworks can vary significantly between production locations. This means that, for each source country, importers must assess local emissions standards, check if local verifiers are accredited under ISO 14065, and determine if partial exemptions or adjustments apply.
Why Cement Has a High Embedded Carbon Footprint
Cement production generates unavoidable carbon emissions through fundamental chemical processes. Understanding these sources helps businesses prepare for CBAM obligations.
Process Emissions
Process emissions represent the largest component of cement's carbon footprint. Through a process called calcination, CO₂ is released. Because these emissions cannot be eliminated through process optimisation, alternative materials, such as Supplementary Cementitious Materials (SCMs), are often used. In addition, carbon capture and storage systems, such as post-combustion capture and direct air capture, can also help abate process emissions and their environmental effects.
Energy Use
Energy use can generate substantial emissions. The energy used to create cement is a key contributor to climate change, and a target of the indirect emissions pricing outlined in CBAM.
In practice, the energy used in the cement industry often derives from fossil fuels, used for heating, while coal and petroleum coke remain common fuel sources. Fuel switching and energy efficiency measures, such as high-efficiency kilns and Waste Heat Recovery (WHR), can help reduce these emissions at source.
The UK's position within adds another layer of complexity. The UK government plans its own CBAM implementation from 2027. This system will cover cement imports into the UK. UK businesses face dual compliance requirements for EU and domestic markets. Separate reporting systems may apply. Strategic planning must account for both regulatory frameworks.
CBAM Cement UK: How A Low-Carbon Strategy Can Mitigate Costs
CBAM creates powerful incentives for cement supply chain transformation. The main opportunity lies in the complete supply chain transparency that the mechanism brings.
CBAM enables businesses to map their cement carbon emissions from end to end. This visibility reveals emission hotspots across suppliers, while empowering informed decision-making. Under CBAM, companies are better positioned to benchmark supplier performance, ensuring that their carbon intensity is accurately measured and prioritised for decarbonisation.
In addition, CBAM helps incentivise the sourcing of lower-carbon cement alternatives. LC3 cement (Limestone Calcined Clay Cement), for instance, reduces emissions by up to 30% compared to standard Portland cement. Blended cements, meanwhile, utilise industrial by-products like fly ash or slag. These alternatives maintain structural performance while cutting carbon intensity, and may become more prevalent as CBAM costs come into play.
Navigate Cement Sector Challenges with CFP Energy
The cement industry faces fundamental changes under carbon border mechanisms. Early preparation, such as formulating a decarbonisation strategy, will ensure long-term advantage.
At CFP Energy, we help cement importers operating in sectors from manufacturing to construction calculate embedded emissions, as well as purchase CBAM certificates. Our expertise covers complex reporting obligations under both EU and UK CBAM frameworks, helping us to turn the CBAM regulatory burden into a long-term competitive advantage.
To find out how we can help you meet your regulatory obligations and access CBAM certificates, contact our team today.
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