For several weeks now, Solar Heat Europe has been leading an advocacy work towards policymakers to ensure that solar thermal collectors and water tanks (a crucial component of the value chain) are included in the Carbon Border Adjustment Mechanism (CBAM).
The CBAM currently imposes a levy on certain raw materials (aluminium, steel, cement, fertilisers, electricity, hydrogen). The CBAM is now set to be extended to hundreds of downstream products, and we want solar thermal to be included. This means that imported solar thermal collectors will have to pay the carbon cost of their production (which European manufacturers already bear via the ETS).
To date, more than 90% of solar thermal collectors sold in Europe come from companies manufacturing on the continent, making our sector one of the only renewable energies made in Europe. However, competition from non-European manufacturers is intensifying, as they benefit not only from carbon tax exemptions but also from dumping practices for access to raw materials. This ‘double’ disadvantage for European manufacturers leads to unfair access to raw materials and makes their end products more expensive.
EU solar thermal manufacturers are already impacted by carbon-related mechanisms for raw materials (such as steel and aluminium, via ETS and CBAM) and should not be penalized in global trade competition. As a consequence, extending the scope of CBAM to solar thermal finished products (codes 841912, 841919), as well as water tanks (730900, 841990, 731010, 851610) would enable them to compete with imported technologies.
Solar Heat Europe recently met with the office of MEP Kanev and therefore hopes to see these codes included in the European Parliament’s amendments.