Listen on * Spotify * Apple Music * Amazon Music Zittern um die Versorgungssicherheit: Deutschlands Gasspeicher sind nur noch zu einem Drittel gefüllt. Während Wirtschaftsministerin Katherina Reiche beschwichtigt, warnt die Branche vor Engpässen an extrem kalten Tagen. Joana Lehner von “Energie und Klima am Morgen” berichtet im Gespräch mit Gordon Repinski über die Sorgen der Energiebranche und wie Unternehmen mit kurzfristigem Bedarf in finanzielle Nöte geraten könnten. Ein kostenloses Probe-Abo des Pro-Newsletters gibt es hier. Im 200-Sekunden-Interview erklärt Netzagentur-Chef Klaus Müller, warum er trotz leerer Speicher keine Mangellage sieht, aber mit steigenden Preisen rechnet, wenn auch nicht für private Haushalte.  Beben in Washington: Drei Millionen neu veröffentlichte Seiten der Epstein-Akten erschüttern das Machtzentrum der USA. Mittendrin: Präsident Donald Trump. Washington-Korrespondent Jonathan Martin  von POLITICO analysiert, warum der Zynismus der US-Wähler gegenüber den Institutionen einen neuen Siedepunkt erreicht. Außerdem im Podcast: Zahnarzt nur noch für Selbstzahler? Die Aufregung um den Vorstoß des CDU-Wirtschaftsrates. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski. POLITICO Deutschland – ein Angebot der Axel Springer Deutschland GmbH Axel-Springer-Straße 65, 10888 Berlin Tel: +49 (30) 2591 0 information@axelspringer.de Sitz: Amtsgericht Berlin-Charlottenburg, HRB 196159 B USt-IdNr: DE 214 852 390 Geschäftsführer: Carolin Hulshoff Pol, Mathias Sanchez Luna

The eurozone economy held up well at the end of 2025, with three of the region’s four largest countries growing by more than expected. Preliminary data from the EU’s statistical office, Eurostat, on Friday showed that the eurozone’s economy expanded by 0.3 percent during the last three months of last year, unchanged from the third quarter. That was better than market expectations of an increase of 0.2 percent. In year-on-year terms, gross domestic product growth slowed by less than feared, to 1.3 percent from 1.4 percent in the previous quarter. GDP was up 0.3 percent in Germany, the region’s biggest economy, and by 0.4 percent and 0.8 percent in Italy and Spain, respectively. The standout underperformer was France, where it was stagnant, held back by a political deadlock that delayed the approval of a budget for 2026. Eurostat’s numbers still showed the scars of the U.S.-driven trade war that overshadowed the economy all through last year. Ireland, whose GDP figures are heavily influenced by trade and financial flows between it and the U.S., registered a sharp contraction of 0.6 percent in the final three months of the year. Eurostat gave no analysis of its numbers, but the figures were likely supported by the fall in global energy prices toward the end of last year. This typically helps European spending power, given that Europe is a net importer of energy.

BRUSSELS — Hungary and Slovakia will sue the European Union over its plan to ban all imports of Russian gas as soon as the law officially comes into force, the countries’ foreign ministers announced today. Hungarian Foreign Minister Péter Szijjártó wrote on X Monday that the country would use “every legal means” to have the ban annulled, adding the ban went “against our national interest and would significantly increase energy costs for Hungarian families.” EU lawmakers and leaders agreed in December to end all purchases of gas from Russian exporters by the end of 2027, with a similar ban on crude likely to come later this year. Leaders rubber-stamped the law on Monday, but Hungary and Slovakia — which are highly dependent on Russian fossil fuels — voted against the measure, arguing that it would send energy prices skyrocketing. Hungary said it would begin proceedings against the EU as soon as the law is formally adopted, which is likely to be in early February. Szijjártó has repeatedly threatened to sue the EU but this is the first time he has laid out a specific timeframe. He criticized the EU’s use of a “legal trick” to pass the law by presenting it as a trade measure rather than a sanction, which would have required unanimity. Slovakia will also sue the bloc, Foreign Minister Juraj Blanár said in a statement, without giving a specific date. “We cannot accept solutions that fail to reflect the real capacities and specific circumstances of individual countries,” he said.

Ed Miliband is the U.K. energy secretary and Dan Jørgensen is the EU commissioner for energy. The world has entered an era of greater uncertainty and instability than at any other point in either of our lifetimes, and energy is now central to this volatile age we find ourselves in. In recent years, both Britain and Europe have paid a heavy price for our exposure to the roller coaster of international fossil fuel markets. Russia’s illegal invasion of Ukraine in 2022 sent global gas prices soaring — driving up bills for families and businesses across the continent and leading to the worst cost-of-living crisis our countries have faced in a generation. Even as Europe rapidly cut its dependence on Russian gas and is now swiftly moving toward a complete phaseout, exposure to fossil fuels remains the Achilles’ heel of our energy systems. The reality is that relying so heavily on fossil fuels — whether from Russia or elsewhere — can’t give us the energy security and prosperity we need. It leaves us incredibly vulnerable to international market volatility and pressure from external actors. Like European Commission President Ursula von der Leyen said: “As our energy dependency on fossil fuels goes down, our energy security goes up.” This is why Britain and the EU are committed to building Europe’s resources of homegrown clean power, looking to increase our energy security, create well-paid jobs, bring down bills and boost our industrial competitiveness, all while tackling the climate crisis to protect future generations. Today, nine European countries, alongside representatives from NATO and the European Commission, are meeting in Hamburg for the third North Sea Summit to act on this shared understanding. Together, we can seize the North Sea’s vast potential as a clean energy powerhouse — harness its natural resources, skilled workforce and highly developed energy industries to lead the world in offshore wind, hydrogen and carbon capture technologies.   Three years ago in Ostend, our countries united behind a pioneering goal to deliver 300 gigawatts of offshore wind in the North Sea by 2050. Today in Hamburg, we will double down on those commitments and pledge to jointly deliver shared offshore wind projects. With around $360 billion invested in clean energy in the EU just last year, and wind and solar overtaking fossil-fuel-generated power for the first time, this is an historic pact that builds on the clean power momentum we’re seeing all across Europe. And this unprecedented fleet of projects will harness the abundant energy waiting right on our doorstep, so that we can deliver cheap and secure power to homes and businesses, cut infrastructure costs and meet rising electricity demand. Everything we’re seeing points to a clean energy economy that is booming. Indeed, earlier this month Britain held the most successful offshore wind auction in European history, delivering enough clean energy to power 12 million homes — a significant vote of confidence in Britain and Europe’s drive to regain control of our energy supplies. We believe there is huge value in working together, with our neighbors and allies, to build this future — a future that delivers on shared energy infrastructure, builds strong and resilient supply chains, and includes talks on the U.K.’s participation in the European electricity market. Strengthening such partnerships can help unlock investment, reduce our collective exposure to fossil fuels and bring down energy costs for our citizens. This speaks to a wider truth: An uncertain age makes cooperating on the basis of our shared interests and values more important — not less. By accelerating our drive to clean energy, today’s summit will be fundamental in delivering the energy security and prosperity Europe desperately needs.

BRUSSELS — The trade war is back. Donald Trump’s threat to impose tariffs on European countries over Greenland has blown up last year’s transatlantic trade truce and forced the EU into a familiar dilemma: hit back hard, or try to buy time.  On paper, Brussels has options. It could target politically sensitive U.S. exports like Republican-state soybeans. Or it could unleash its trade “bazooka,” the Anti-Coercion Instrument. Here are the actions that EU leaders can consider when they gather for an emergency summit on Thursday: HITTING BACK AGAINST U.S. PRODUCTS Retaliatory tariffs on €93 billion worth of U.S. goods are still sitting in the EU’s pantry. These date back to Trump’s first round of tariffs last year and were frozen for six months in August. This package will automatically kick into force on Feb. 7 unless the Commission proposes to extend the freeze and the 27 EU countries agree with that. Such a suspension can happen very quickly, however, as the Commission typically sounds out support from capitals several times a week. Part of the package targets distinctively American products like Levi’s jeans, Harley Davidson motorcycles and Kentucky bourbon. Other goods would be targeted because they originate in states that lean towards the Republican side of the spectrum. A tariff on soy beans, for instance, would target the red state of Louisiana from which House Speaker Mike Johnson hails. DEPLOYING THE TRADE “BAZOOKA” The biggest weapon in the EU’s arsenal is its Anti-Coercion Instrument. This all-purpose tool is meant to deter other countries from using trade tactics to extort concessions in other areas. With it, Brussels can impose or increase customs duties, restrict exports or imports through quotas or licenses, and impose restrictions on trade in services. It also can curb access to public procurement, foreign direct investment, intellectual property rights and access to the bloc’s financial markets.  But in a case like this, it would take a few months to first clear diplomatic hurdles between the Commission and the Trump administration. Because it has never been triggered before, the EU is in uncharted waters. That is especially true for the dynamics between the Commission and national capitals. Brussels needs to propose launching the mechanism, and would only do so if it knows enough capitals will agree. France is keen, but Germany and other countries? Not so much. Thomas Lohnes/Getty Images “It’s one of the cards,” but “it’s really not the first in the line that you use,” Lithuanian Finance Minister Kristupas Vaitiekūnas told POLITICO in an interview. PLAYING THE CHINA CARD Canadian Prime Minister Mark Carney did something unprecedented last Friday. Turning the page on the acrimonious relationship between Canada and China born out of the arrest of a high-profile Huawei executive, the Canadian leader struck a preliminary trade deal with Beijing to liberalize imports of Chinese electric vehicles in exchange for a steep reduction in tariffs on Canadian agricultural goods. Carney didn’t mention Trump by name, but the message was clear: Canada has other partners, and it won’t sit quietly while Washington tries to strong-arm it.   A blueprint for Brussels? It’s not that simple. While the EU has tried to thread the needle on its trade relations with Beijing — the Asian country remains its second-largest trading partner  — policymakers are keenly aware of the competitive threat posed by China, Inc. Germany’s automotive industry is reeling from high energy prices and fierce competition from China (now the world’s top automotive exporter). In general, overcapacity — the term for China’s dizzying output of products that, unable to be absorbed by its domestic market, are sold abroad — keeps EU business leaders up at night. Compared with Canada, for the EU China is a “whole different can of worms,” said trade expert David Kleimann. “The Chinese are outcompeting us on all of our main exports and domestic production,” he said. “We will need more barriers, more managed trade with China.”  AN ASSET FIRESALE America’s enormous debt pile is one Achilles heel. The U.S. loves to spend, and Europeans, in turn, snap up that debt. George Saravelos, head of foreign exchange research at Deutsche Bank, said that European public and private sector entities hold a combined total of $8 trillion of U.S. stocks and debt — “twice as much as the rest of the world combined.”  “In an environment where the geoeconomic stability of the western alliance is being disrupted existentially, it is not clear why Europeans would be as willing to play this part,” the analyst wrote in a note to clients. If European governments order their banks and pension funds to dump their holdings, that would almost certainly spark a financial crisis, sending America’s borrowing costs soaring. The ensuing financial Armageddon would engulf Europe as well, though. The firesale of financial assets would crush prices, and European lenders would book huge losses — the financial equivalent of nuclear mutually assured destruction.  Increasing decoupling from the U.S. financial system looks likely, but a violent wholesale break is extremely unlikely.  PLAYING FOR TIME Restraint is the EU’s weapon of choice for now. “The priority here is to engage, not escalate, and avoid the imposition of tariffs,” Olof Gill, deputy chief spokesperson for the European Commission, said on Monday. Under their trade deal struck last year, the United States has already lowered tariffs on most EU products to 15 percent, while the EU has yet to make good on its pledge to cut its tariffs on U.S. industrial goods to zero. That’s because Trump’s threats have derailed a vote in the European Parliament on lowering tariffs for U.S. products. While this stalemate lasts, EU companies actually benefit from lower costs while the reverse is not true for their American counterparts. “Trade continues to flow, investment continues to flow,” Gill added. “So we need to be very sensible in how we approach the difference between a threat and operational reality.” With Trump trying to drive a wedge between European leaders by threatening tariffs against some countries, including France and Germany, while sparing others, like Italy, maintaining cohesion will be a huge challenge. Any serious retaliation, such as wielding the bloc’s trade “bazooka,” the Anti-Coercion Instrument, would require very broad support. WHAT COMES NEXT The U.S. Supreme Court might rule on some of Trump’s tariffs as soon as Tuesday. If the administration loses the case, Trump would have to deal with the fallout while he’s attending this week’s World Economic Forum in Davos.  “On a purely economic warfare basis, that would play in our favor,” said Kleimann. “But we haven’t considered Trump’s ambitions to actually put boots on the ground.” At Davos, Trump might meet with Commission President Ursula von der Leyen, although no bilateral is yet confirmed. Von der Leyen will speak at Davos on Tuesday; Trump is due to arrive the day after.  Then on Thursday, EU government leaders hold an emergency summit in Brussels to discuss transatlantic relations and the latest tariff threats. The meeting is not expected to create a glitzy attack plan but rather to sound out whether the EU should indeed target the U.S. goods or maybe shoulder its trade bazooka. By Feb. 1, the U.S. tariffs on the European allies would kick in, if Trump follows through on his threats. A week later, the EU’s retaliation package automatically kicks in if no solution is found. If that happens, we really will be in a trade war.

BRUSSELS — The need for the EU to respond to multiple global crises means world affairs are likely to encroach on a leaders’ summit next month that was supposed to be solely a brainstorm on how to boost the bloc’s flagging industries. Discussions over February’s informal European Council agenda — the first face-to-face sit-down of the year — reveal the competing short and long-term pressures facing Brussels, as it works to cut the economy’s reliance on the U.S. and China. Pedro Lourtie, chief of staff to European Council President António Costa, met ambassadors on Wednesday to discuss preparations for the summit, scheduled for Feb. 12 at  Alden Biesen, a castle in the eastern Belgian countryside. Costa called the gathering as an extraordinary session to focus on competitiveness issues. But that was before U.S. President Donald Trump amped up his efforts to take control of Greenland from Denmark and launched a new round of talks with both Russia and Ukraine. An informal summit in Copenhagen last year ended with a number of planned issues left unresolved because of time constraints, with diplomats and officials keen to ensure that does not happen this time. Ambassadors used their meeting with Lourtie to say the agenda would need to give their leaders sufficient space to debrief on transatlantic relations and the threat from Moscow. “There was broad support from a large number of countries saying that there needs to be adequate time for the discussion of the big geopolitical issues that leaders will also want to talk about,” said one of the diplomats, granted anonymity to speak freely about the closed-door talks. “That will need to happen to make sure we can also talk about the important issue of competitiveness.” Global issues “may demand leaders’ attention” and Costa will ensure there’s enough time for that discussion, a Council official said. Hungary was skeptical about the move, the diplomats said. Budapest has refused to join other capitals in condemning Trump’s efforts to take control of Greenland from Denmark, and pursued closer relations with both China and Russia. The competitiveness debate is expected to include two elements: external threats including unpredictable trade barriers imposed by the U.S. and Beijing’s hostile trade policies, and internal threats like energy prices and red tape for industry. Hungary wants to focus primarily on the second point, the diplomats said. Victor Jack contributed to this report.

Listen on * Spotify * Apple Music * Amazon Music Cem Özdemir will Ministerpräsident von Baden-Württemberg werden – und damit die grüne Erfolgsgeschichte nach Winfried Kretschmann fortschreiben. In dieser Sonderfolge des POLITICO Berlin Playbook Podcast spricht der frühere Landwirtschaftsminister, Parteichef und Europaabgeordnete über seinen Anspruch auf das Amt, seine politische Erfahrung und seinen Politikstil zwischen Kompromiss, Pragmatismus und Führung aus der Mitte der Gesellschaft. Diese Folge ist das zweite Gespräch aus der Reihe “Let’s find common ground” zusammen mit Telefónica O2. Das Interview mit CDU-Spitzenkandidat Manuel Hagel gibt es hier zu hören. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski. Legal Notice (Belgium) POLITICO SRL Forme sociale: Société à Responsabilité Limitée Siège social: Rue De La Loi 62, 1040 Bruxelles Numéro d’entreprise: 0526.900.436 RPM Bruxelles info@politico.eu www.politico.eu

Listen on * Spotify * Apple Music * Amazon Music Manuel Hagel tritt an, um Baden-Württemberg politisch neu auszurichten. Der CDU-Landes- und Fraktionschef will im kommenden März 2026 der Ministerpräsident werden und die Ära Winfried Kretschmann beenden. In dieser Sonderfolge des POLITICO Berlin Playbook Podcast spricht Hagel ausführlich über seinen Anspruch auf das Amt, seine Abgrenzung zu Cem Özdemir und seine Vorstellung davon, wie das Land wirtschaftlich wieder nach vorn kommen soll.  Diese Folge ist das erste von zwei Gesprächen aus Stuttgart aus der Reihe “Let’s find common ground” zusammen mit Telefónica O2. Am morgigen Samstag folgt das Interview mit Cem Özdemir. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski. Legal Notice (Belgium) POLITICO SRL Forme sociale: Société à Responsabilité Limitée Siège social: Rue De La Loi 62, 1040 Bruxelles Numéro d’entreprise: 0526.900.436 RPM Bruxelles info@politico.eu www.politico.eu

Listen on * Spotify * Apple Music * Amazon Music Die europäische Sicherheitslage steht heute im Mittelpunkt. Mark Rutte, der NATO-Generalsekretär, kommt nach Berlin und trifft den Kanzler. Für Friedrich Merz ist dieses Gespräch zentral, denn es hängt die Frage über allem, wie sich Europa verteidigen soll, wenn Washington sich weiter zurückzieht. Gordon Repinski ordnet ein, welche Erwartungen an das Treffen geknüpft sind und welche Rolle eingefrorene russische Vermögen für die Ukraine dabei spielen Im 200-Sekunden-Interview spricht Franziska Brantner, Co-Vorsitzende der Grünen, über die Verteidigungsfähigkeit Europas. Sie erklärt, warum die Europäer Sicherheitsgarantien für die Ukraine vorbereiten müssen und weshalb eine kleinere Gruppe schneller vorangehen sollte. Im Anschluss berichtet Marion Soletty von POLITICO in Frankreich zu den Gesprächen zwischen Verteidigungsminister Boris Pistorius und seiner neuen französischen Amtskollegin Catherine Vautrin. Das FCAS-Projekt, ein gemeinsamer Kampfjet, steckt fest. Es geht um industrielle Führungsansprüche zwischen Dassault und Airbus und um die Frage, ob noch in diesem Jahr eine Einigung möglich ist. Am Ende ein Blick in die SPD, wo Generalsekretär Tim Klüssendorf mit einer wirtschaftsfreundlichen Rede überrascht und bei Arbeitgebern Zustimmung findet. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski. Legal Notice (Belgium) POLITICO SRL Forme sociale: Société à Responsabilité Limitée Siège social: Rue De La Loi 62, 1040 Bruxelles Numéro d’entreprise: 0526.900.436 RPM Bruxelles info@politico.eu www.politico.eu

High energy prices, risks on CBAM enforcement and promotion of lead markets, as well as increasing carbon costs are hampering domestic and export competitiveness with non-EU producers. The cement industry is fundamental to Europe’s construction value chain, which represents about 9 percent of the EU’s GDP. Its hard-to-abate production processes are also currently responsible for 4 percent of EU emissions, and it is investing heavily in measures aimed at achieving full climate neutrality by 2050, in line with the European Green Deal. Marcel Cobuz, CEO, TITAN Group  “We should take a longer view and ensure that the cement industry in EU stays competitive domestically and its export market shares are maintained.” However, the industry’s efforts to comply with EU environmental regulations, along with other factors, make it less competitive than more carbon-intensive producers from outside Europe. Industry body Cement Europe recently stated that, “without a competitive business model, the very viability of the cement industry and its prospects for industrial decarbonization are at risk.” Marcel Cobuz, member of the Board of the Global Cement and Concrete Association and CEO of TITAN Group, one of Europe’s leading producers, spoke with POLITICO Studio about the vital need for a clear policy partnership with Brussels to establish a predictable regulatory and financing framework to match the industry’s decarbonization ambitions and investment efforts to stay competitive in the long-term. POLITICO Studio: Why is the cement industry important to the EU economy?  Marcel Cobuz: Just look around and you will see how important it is. Cement helped to build the homes that we live in and the hospitals that care for us. It’s critical for our transport and energy infrastructure, for defense and increasingly for the physical assets supporting the digital economy. There are more than 200 cement plants across Europe, supporting nearby communities with high-quality jobs. The cement industry is also key to the wider construction industry, which employs 14.5 million people across the EU. At the same time, cement manufacturers from nine countries compete in the international export markets. PS: What differentiates Titan within the industry?  MC: We have very strong European roots, with a presence in 10 European countries. Sustainability is very much part of our DNA, so decarbonizing profitably is a key objective for us. We’ve reduced our CO2 footprint by nearly 25 percent since 1990, and we recently announced that we are targeting a similar reduction by 2030 compared to 2020. We are picking up pace in reducing emissions both by using conventional methods, like the use of alternative sources of low-carbon energy and raw materials, and advanced technologies. TITAN/photo© Nikos Daniilidis We have a large plant in Europe where we are exploring building one of the largest carbon capture projects on the continent, with support from the Innovation Fund, capturing close to two million tons of CO2 and producing close to three million tons of zero-carbon cement for the benefit of all European markets. On top of that, we have a corporate venture capital fund, which partners with startups from Europe to produce the materials of tomorrow with  very low or zero carbon. That will help not only TITAN but the whole industry to accelerate its way towards the use of new high-performance materials with a smaller carbon footprint. PS: What are the main challenges for the EU cement industry today?  MC: Several factors are making us less competitive than companies from outside the EU. Firstly, Europe is an expensive place when it comes to energy prices. Since 2021, prices have risen by close to 65 percent, and this has a huge impact on cement producers, 60 percent of whose costs are energy-related. And this level of costs is two to three times higher than those of our neighbors. We also face regulatory complexity compared to our outside competitors, and the cost of compliance is high. The EU Emissions Trading System (ETS) cost for the cement sector is estimated at €97 billion to €162 billion between 2023 and 2034. Then there is the need for low-carbon products to be promoted ― uptake is still at a very low level, which leads to an investment risk around new decarbonization technologies. > We should take a longer view and ensure that the cement industry in the EU > stays competitive domestically and its export market shares are maintained.” All in all, the playing field is far from level. Imports of cement into the EU have increased by 500 percent since 2016. Exports have halved ― a loss of value of one billion euros. The industry is reducing its cost to manufacture and to replace fossil fuels, using the waste of other industries, digitalizing its operations, and premiumizing its offers. But this is not always enough. Friendly policies and the predictability of a regulatory framework should accompany the effort. PS: In January 2026, the Carbon Border Adjustment Mechanism will be fully implemented, aimed at ensuring that importers pay the same carbon price as domestic producers. Will this not help to level the playing field? MC: This move is crucial, and it can help in dealing with the increasing carbon cost. However, I believe we already see a couple of challenges regarding the CBAM. One is around self-declaration: importers declare the carbon footprint of their materials, so how do we avoid errors or misrepresentations? In time there should be audits of the importers’ industrial installations and co-operation with the authorities at source to ensure the data flow is accurate and constant. It really needs to be watertight, and the authorities need to be fully mobilized to make sure the real cost of carbon is charged to the importers. Also, and very importantly, we need to ensure that CBAM does not apply to exports from the EU to third countries, as carbon costs are increasingly a major factor making us uncompetitive outside the EU, in markets where we were present for more than 20 years. > CBAM really needs to be watertight, and the authorities need to be fully > mobilized to make sure the real cost of carbon is charged to the importers.” PS: In what ways can the EU support the European cement industry and help it to be more competitive? MC: By simplifying legislation and making it more predictable so we can plan our investments for the long term. More specifically, I’m talking about the revamping of the ETS, which in its current form implies a phase-down of CO2 rights over the next decade. First, we should take a longer view and ensure that the cement industry stays competitive and its export market shares are maintained, so a policy of more for longer should accompany the new ETS. > In export markets, the policy needs to ensure a level playing field for > European suppliers competing in international destination markets, through a > system of free allowances or CBAM certificates, which will enable exports to > continue.” We should look at it as a way of funding decarbonization. We could front-load part of ETS revenues in a fund that would support the development of technologies such as low-carbon materials development and CCS. The roll-out of Infrastructure for carbon capture projects such as transport or storage should also be accelerated, and the uptake of low-carbon products should be incentivized. More specifically on export markets, the policy needs to ensure a level playing field for European suppliers competing in international destination markets, through a system of free allowances or CBAM certificates, which will enable exports to continue. PS: Are you optimistic about the future of your industry in Europe?  MC: I think with the current system of phasing out CO2 rights, and if the CBAM is not watertight, and if energy prices remain several times higher than in neighboring countries, and if investment costs, particularly for innovating new technologies, are not going to be financed through ETS revenues, then there is an existential risk for at least part of the industry. Having said that, I’m optimistic that, working together with the European Commission we can identify the right policy making solutions to ensure our viability as a strategic industry for Europe. And if we are successful, it will benefit everyone in Europe, not least by guaranteeing more high-quality jobs and affordable and more energy-efficient materials for housing ― and a more sustainable and durable infrastructure in the decades ahead. -------------------------------------------------------------------------------- Disclaimer POLITICAL ADVERTISEMENT * The sponsor is Titan Group * The advertisement is linked to policy advocacy around industrial competitiveness, carbon pricing, and decarbonization in the EU cement and construction sectors, including the EU’s CBAM legislation, the Green Deal, and the proposed revision of the ETS. More information here.