The European Solar Manufacturing Council (ESMC) has recently had a meeting with the European Commission to extend the scope of the Carbon Border Adjustment Mechanism to include solar trackers, photovoltaic modules, and similar other finished solar products in its portfolio. The concern is that while raw materials like aluminium fall under CBAM, finished imports escape scrutiny – undermining EU producers. Expanding coverage and promoting the use of green aluminium could close this loophole and cut carbon leakage.
ESMC authorities believe that leaving these products outside the CBAM portfolio can have a credibility impact on the EU manufacturers, and at the same time, it will be a disadvantage for the business in the long run.
The loophole CBAM is dealing with at present
As of now, CBAM only includes carbon-intensive raw materials like aluminium, steel, and glass. It means a typical 22-kilogram solar panel actually contains 14 kilograms of glass and 3 kilograms of aluminium. Selling these products requires an additional carbon adjustment pricing which is otherwise not required for completely finished products as they use green aluminium and other eco-friendly items. And that’s what gives foreign products a competitive edge.
Anti-circumvention and compliance
Extending CBAM to finished solar products can be a key anti-circumvention tool that will surely prevent untaxed embedded emissions from slipping into the EU market. The council noted that most solar manufacturers already publish carbon data through Environmental Product Declarations (or EPDs). There are certification schemes like France’s Certisolis to make compliance more feasible. However, they can combat this issue by simply leveraging green aluminium instead of the traditionally used variety in finished products. This would not only minimise carbon emissions but also help ESMC to ensure environmental security.
The ESMC emphasised that broadening CBAM coverage to solar products would complement the Net-Zero Industry Act and the European Solar Initiative, both of which aim to reindustrialise Europe while safeguarding energy security. This is a business imperative as well as a smart move for energy conservation and reducing carbon footprint.
Technical measures proposed by ESMC
To aid enforcement, ESMC endorsed SolarPower Europe's proposal for dedicated customs codes for solar mounting systems and trackers. Such categorisation would give EU authorities valuable tools to identify and monitor imports, ensuring effective CBAM application.
Also read: H1 2025: Top 5 trends to watch in the global aluminium value chain
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