The EU CBAM: A Two-Way Street to Climate Integrity?

Sandbag’s latest report examines how the EU’s CBAM will impact third country exporters. While some may reduce costs through resource shuffling, real emissions may remain unchanged — calling for stronger alignment through carbon pricing.

State Aid for Indirect Carbon Costs: Reform before extending!

Sandbag responds to the EU’s consultation on State aid for Indirect Carbon Costs (ICC), calling for targeted reforms to better support clean electricity, avoid windfall profits, and align with the Carbon Border Adjustment Mechanism (CBAM).

Heat up industry, not the climate!

This position paper analyses the European Commission’s industrial heat auction, highlighting the importance of auction design to ensure electrification reduces emissions without causing unintended increases due to electricity grid dynamics.

Strengthening the CBAM — by default

Sandbag’s August 2025 brief calls for systemic default values to close CBAM loopholes—addressing scrap and cement circumvention, electricity imports, and indirect emissions.

Extending the CBAM to indirect emissions

Sandbag’s latest brief outlines why the CBAM must include indirect emissions — and how this would improve climate effectiveness, industrial fairness, and fiscal efficiency.

New Principles for Steel Labelling: response to the consultation on the Industrial Decarbonisation Accelerator Act

Sandbag’s response to the EU’s Industrial Decarbonisation Accelerator Act sets out four principles to guide green steel labelling schemes, promoting credible standards based on lifecycle emissions and system-wide decarbonisation.

We’re a non-profit climate change think tank which uses data analysis to build evidence-based campaigns on climate policy

We focus on EU policies such as the EU Emissions Trading Scheme, carbon border adjustment mechanisms and emissions reductions in industrial sectors. We believe in Europe’s ability to lead climate action by example and use its large market and ability to stimulate technological competition as an incentive for others to follow. But we’re also aware of the risk that Europe might fail to deliver on its own pledges, which is why we want to get EU climate policy right.

Our Work

Carbon Pricing

Our accomplishments on Carbon Pricing

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Our policy recommendations on EU industry

CBAM

Our work on the Carbon Border Adjustment Mechanism

 

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Financing

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Publications

Aluminium production and CCS/U: A reality check

Aluminium production and CCS/U: A reality check

Aluminium production remains challenging to decarbonise. This brief examines the limited potential of Carbon Capture and Utilisation (CCS/U) in the sector and explores alternative approaches that may offer more effective emissions reductions.

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Towards a minimum recycled steel content in passenger cars: setting an initial target

Towards a minimum recycled steel content in passenger cars: setting an initial target

The EU has around 286 million motor vehicles, and every year, 6.5 million of these are scrapped. If the steel scrap from these end-of-life vehicles (ELVs) is not managed well, valuable resources are lost, harming the environment. With the EU preparing its ELV Regulation, which could set targets for minimum recycled steel content for passenger cars : what should those targets be?

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In or Out: What’s best for carbon removals and the EU ETS?

In or Out: What’s best for carbon removals and the EU ETS?

What will the future of the EU Emissions Trading System (ETS) look like as the emissions cap heads towards zero? Is integrating carbon dioxide removals (CDRs) into the ETS a solution to help the EU achieve its climate goals? Or would they compromise the integrity and functioning of the system? These questions are at the forefront of the Commission’s mind as they review different options for the future of the ETS ahead of the 2026 revision.

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For a systematic use of default values in the CBAM

For a systematic use of default values in the CBAM

The current carbon emissions reporting in the CBAM fails to achieve its goal of replacing free allocations under the EU ETS and undermines its integrity. A systematic default value system would improve the CBAM and safeguard the EU ETS.

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TESTIMONIALS

Sandbag is recognised as a top global climate think-tank

An inspirational idea that promises to make a real and positive difference… and a wonderful opportunity to help sort out the climate mess we’ve all created. Prof. Chris Turney is the author of Ice, Mud and Blood: Lessons from Climates Past
Chris Turney

Professor, University of Exeter

Sandbag is playing a crucial role in making sure that Europe’s cornerstone climate policy actually does its job.
Caroline Lucas

United Kingdom MP

Sandbag… strikes a balance between underlining the merits of the EU ETS and criticising the weaknesses.
Connie Hedegaard

Former European Commissioner

Mundo Matogné. Rue d’Edimbourg 26, Ixelles 1050 Belgium. Sandbag is a not-for-profit (ASBL) organisation registered in Belgium under the number 0707.935.890. EU transparancy register no. 277895137794-73. VAT: BE0707935890

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