CEO Position: CBAM Must Protect Europe’s Industrial Value Chains – Not Leave Them Exposed

3 March 2026

CBAM Must Protect Europe’s Industrial Value Chains – Not Leave Them Exposed

European Tool Association calling on the European Parliament and the Council to correct the current imbalance of CBAM and amend the Commission proposals accordingly. CBAM can only be credible if it protects Europe’s industrial value chains in their entirety, not just their first link.

 

The European Tool Association (CEO) represents the interests of Europe’s tool and fixings manufacturers, covering key categories such as hand tools, power tool accessories and construction fixings like anchors.

With a yearly turnover of 30 billion euros and a total workforce of around 150.000 in the EU, the tool industry is a significant part of the European industrial landscape. Beyond its economic weight, the tool industry provides essential inputs for a wide range of sectors, including manufacturing,
construction, maintenance of critical infrastructure and defence-related applications.

The Carbon Border Adjustment Mechanism (CBAM) is a defining element of the European Union’s climate and industrial strategy and a litmus test for its ability to reconcile ambitious climate objectives with the need to preserve a strong and competitive industrial base.

At the same time, it is important to underline that CBAM is an intervention in trade. Under the current conditions in the EU, however, CBAM is a necessity. CEO therefore supports CBAM as long as it is proportionate, prevents abuse, and does not place a unilateral burden on European
manufacturers.

However, the Commission’s current proposals for the revision and extension of CBAM to downstream products fall short of achieving these objectives. Significant parts of Europe’s downstream manufacturing base such as hand tools, measuring tools and power tool accessories remain excluded from CBAM and will be exposed to unfair international competition once CBAM is  fully applied.

To remedy this, CEO explicitly calls for the inclusion of the relevant CN tariff codes for hand tools, measuring tools and power tool accessories (in particular CN Chapter 82 and relevant products under Chapter 90) in CBAM.

You can find the full text of the CEO Position Paper in the Download section below.