Assopannelli urges EU to exclude urea from CBAM

Assopannelli, an association within FederlegnoArredo, is urging the European Union to amend upcoming regulations regarding the Carbon Border Adjustment Mechanism (CBAM). Ahead of a crucial vote in Strasbourg, the group is calling for the exclusion of urea from the CBAM scope and the retention of Article 27a, a safeguard clause designed to address market distortions such as price spikes or supply shortages.

Paolo Fantoni, president of Assopannelli, noted that urea is a strategic raw material used to produce resins and glues for wood-based panels. The inclusion of urea in CBAM is expected to increase import costs from non-EU countries, potentially raising prices for finished products and consumers by an estimated 10–12%. The urgency of this request is heightened by rising natural gas prices, which significantly impact urea production costs.