Usage Procedure – How to use the CBAM Calculator Sheet

INPUT
PARAMETERS section (Highlighted in blue)

The system will automatically calculate the payable
emissions and the total CBAM cost (€) based on the
inputs provided.

Notes:
• Change any input value to automatically update CBAM cost.
• Formula used: Carbon price × payable emissions × quantity.
• Model aligned with CBAM supplier-side illustrative methodology.

04 JUNE 2026 AL CIRCLE

EU unveils made in Europe plan for aluminium and clean-tech sectors

EDITED BY : STAFF EDITOR 3MINS READ

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The European Commission has proposed a new law to increase the use of European-made aluminium, steel and clean-tech products in projects receiving public funding.

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Known as the Industrial Accelerator Act (IAA), the proposal covers sectors including aluminium, steel, cement, batteries, solar power and electric vehicles. Under the draft rules, a portion of the aluminium used in public procurement projects would need to be both low-carbon and produced within the European Union, while certain clean-tech products would face new sourcing requirements.

The legislation would also seek to reduce dependence on a single overseas supplier for clean-tech products and key components. In certain public procurement projects, no more than 50 per cent of the value of a clean-tech product or its key components could come from a single third country.

According to the European Commission, the proposal comes as manufacturing's share of the EU economy has declined over the past two decades. The bloc aims to increase manufacturing's contribution to GDP from 14.3 per cent in 2024 to 20 per cent by 2035.

The proposal has attracted attention because of its potential implications for Chinese manufacturers. European Commission data cited in the legislation indicates that China accounts for around 80 per cent of global battery and solar manufacturing capacity.

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China's Ministry of Commerce has criticised the proposal, arguing that it could undermine fair competition.

The legislation remains at an early stage and must be approved by both the European Parliament and EU member states before it can become law.

The proposal has also sparked debate over costs. Some industry groups support measures designed to strengthen domestic manufacturing, while others warn that stricter sourcing requirements could increase project costs.

The European Commission has acknowledged that some European-made products may be more expensive than imported alternatives but argues that the overall impact on project costs is likely to be limited.

The proposal also introduces new requirements for foreign investment in strategic sectors such as batteries, electric vehicles, solar power and critical raw materials. Investments exceeding EUR 100 million could face additional conditions related to local employment, partnerships and research activities.

Industry observers say the measures could encourage more overseas manufacturers to establish production facilities within Europe rather than relying solely on exports to serve the market.

If approved, the legislation could increase the importance of local manufacturing and regional supply chains across a range of industrial and clean-tech sectors, including aluminium.