CBAM: Assopannelli opposes ENVI Committee vote, warning of risks to the entire timber and furniture supply chain

Brussels – Assopannelli, a member of FederlegnoArredo, has expressed serious concern following the European Parliament’s ENVI Committee vote on the revision of the CBAM Regulation, which confirms that urea is among the raw materials subject to the carbon border adjustment mechanism. 

According to the association, the measure risks weakening strategic manufacturing supply chains with no viable alternative sources of supply within the EU. “Urea is a strategic raw material for the production of resins and adhesives used in wood-based panels, accounting for around 43 per cent of direct production costs,” Paolo Fantoni, president of Assopannelli, explained.

The entry into force of the obligation to purchase CBAM certificates could result in an additional cost of between 40 and 60 euros per tonne in 2026 alone, with panel costs rising by 10–12 per cent by the end of the first four years of implementation. This additional cost would be passed on throughout the value chain, also affecting the furniture and interior design sectors. The situation is made more critical by the sector’s reliance on imports: in 2023, over 80 per cent of the urea imported into Italy came from third countries, in particular Egypt, Algeria, and Nigeria. Assopannelli is calling on the European Parliament to introduce temporary suspension mechanisms, greater flexibility in application and the exclusion of urea from the scope of the regulation.

Article written with the assistance of AI.