CBAM has become an increasingly topical issue over the last two years, culminating in its entry into force on 1 January 2026.
ASSOFOND, the trade association representing Italian foundries and a founding member of the European Foundry Federation (EFF), has expressed its concern about the uncertainties brought about by this regulation, in addition to the “simple” risk of rising costs that the sector is already facing.
“What concerns foundries is the paralysis in the procurement of raw materials subject to CBAM such as pig iron, ferroalloys and primary aluminium. The price of these essential production inputs for the sector is currently impossible to quantify, as it will depend on the value of CBAM certificates, which will only be known once importers are able to purchase the certificates themselves (i.e. from February 2027). This unprecedented situation has generated chaos: suppliers and buyers are currently unable to set a price, a condition that is leading to a freeze in sales and a tangible risk of material shortages.”
These raw materials are directly subject to the environmental duties applied at import under the regulation, facing cost increases of up to 35%, while at the same time there are no alternative sources of supply within Europe, or where present they are insufficient to meet demand.
Assofond has therefore asked the Italian Government to act as a spokesperson in Europe to extend the transitional period that expired on 31 December 2025 to the 2026–2027 biennium, turning it into an “evaluation period” in order to stabilise prices and prevent a production shutdown.
This request aims to safeguard the entire Italian foundry sector, which includes around 900 companies employing 23,000 workers and generating a total turnover of €6.6 billion, operating within a circular economy system with products that are 100% recyclable.
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