EFIC has joined the European Panel Federation (EPF), the European Confederation of Woodworking Industries (CEI-Bois), the European Parquet Federation (FEP), the International Committee of Decorative Laminates Industry (ICDLI) and and the Association of European Producers of Laminate Flooring (EPLF) in calling for a balanced application of the EU Carbon Border Adjustment Mechanism (CBAM). While supporting CBAM’s objective of preventing carbon leakage and ensuring a level playing field, the organisations warn that its application to essential industrial inputs such as urea and methanol is placing disproportionate costs on Europe’s wood-based panels and furniture value chains.
Urea and methanol are essential for producing the resins and adhesives used in wood-based panels, and there are currently no technically or economically viable alternatives available at scale. As EU production is also insufficient to meet European demand, manufacturers cannot avoid additional CBAM costs by switching to EU suppliers. These higher costs are already being passed along the value chain, weakening the competitiveness of European wood-based panel and furniture manufacturers without creating a realistic decarbonisation pathway.
The joint statement calls on EU policymakers to exclude urea and methanol from CBAM, maintain Article 27a as an effective safeguard mechanism in cases of severe and unforeseen market disruption, and conduct a robust assessment of downstream impacts before including further chemicals within its scope. The co-signatories underline that CBAM must remain a targeted climate instrument that prevents carbon leakage while supporting the EU’s competitiveness, circular economy and bioeconomy objectives.