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Cement Europe demands urgent investment support amid rising import competition

European cement industry calls for stronger policy framework to enable decarbonisation investment as imports surge to 14.2Mt and exports plummet 63%, one year after launching its Cement Action Plan.

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Cement Europe calls for action on competitiveness

Cement Europe has called on EU policymakers to strengthen investment conditions for cement decarbonisation, rejecting proposals to weaken carbon pricing as a solution to the industry's mounting competitiveness crisis.

In a statement issued on 13 October, exactly one year after launching its Cement Action Plan at an event in Brussels attended by over 100 stakeholders, the association highlighted that more than 120 innovation projects, including carbon capture schemes, are advancing towards commercial deployment. However, the European cement sector faces intensifying trade pressures, with imports climbing from 2.4Mt in 2016 to 14.2Mt in 2025, while exports collapsed by 63 per cent over the same period.

The trade figures mark a continuation of a decade-long erosion of European competitiveness. Since 2015, EU cement exports have fallen by 49.4 per cent in volume from 14.5 million tonnes to 7.4 million tonnes in 2025, even as average export prices increased by 77.5 per cent. The southern European markets have been particularly affected, with Spain experiencing a 2,822 per cent surge in imports since 2016, Italy seeing a 1,747 per cent increase, and Greece registering a 1,535 per cent rise.

Turkey has emerged as the dominant external supplier, with cement imports from Turkey growing by 728 per cent in value to €187 million by 2025, making it the EU's largest import source. Ukraine has also become a major player, with its market share exceeding 10 per cent of total European cement imports in 2024.

Regulatory pressure intensifies

The competitiveness challenges are compounded by the EU's Carbon Border Adjustment Mechanism, which entered its definitive phase on 1 January 2026. Following a transitional reporting period from October 2023 to December 2025, importers must now purchase CBAM certificates to cover embedded emissions in cement and other covered goods, with financial obligations in effect since the start of this year.

Simultaneously, free allocation of EU Emissions Trading System allowances to the cement sector began its gradual phaseout in 2026, running through 2034 in parallel with CBAM implementation. Free allocation currently covers approximately 90 per cent of benchmark emissions but will decline progressively to reach zero by 2034, creating dual regulatory pressure on domestic producers.

The European cement industry emits approximately 104 to 114 megatonnes of carbon dioxide annually, equivalent to Belgium's total annual CO2 emissions. The sector faces unique technical challenges, with approximately 60 per cent of cement's emissions being process-related from the chemical breakdown of limestone. These emissions cannot be eliminated through efficiency improvements alone, making cement a hard-to-abate sector requiring capital-intensive solutions like carbon capture.

Industry demands policy action

Cement Europe reaffirmed its support for the EU Emissions Trading System and called for an effective Carbon Border Adjustment Mechanism addressing both import and export competitiveness. The association emphasized the need for measures to prevent circumvention and close regulatory loopholes.

Other priorities outlined by the industry include competitive electricity prices through lower taxes and levies, investment in grid infrastructure, equal access to alternative fuels, timely development of CO2 transport and storage infrastructure, and funding mechanisms to reduce investment risks. The association also urged the creation of markets that reward EU-produced low-carbon cement and concrete.

According to CEMBUREAU's updated Net Zero Roadmap, the EU cement sector aims to store up to 12 million tonnes of CO2 per year by 2030, increasing to 62 million tonnes per year by 2050. This ambitious target underscores the scale of infrastructure investment required to achieve decarbonisation goals.

Some progress is already visible. Heidelberg Materials' Brevik cement plant in Norway became operational in 2025 as the first industrial facility in Europe to capture CO2 at scale and store it permanently through the Northern Lights project, capturing 400,000 tonnes of CO2 annually.

Cement Europe noted that several proposals currently under negotiation in Brussels reflect the industry's requests, but stressed that implementation at scale is essential to enable the investment needed for decarbonisation while maintaining competitiveness.

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