The EU CBAM: a two-way street between the EU and Africa

Sandbag’s newly released CBAM Simulator allowed us to explore how the EU’s Carbon Border Adjustment Mechanism (CBAM) could impact African exporters — and how cleaner production and carbon pricing could turn a cost into a competitive edge.

Electrification or electrical decarbonisation? We need both!

Sandbag’s response to the EU’s Electricity Action Plan highlights why both electrification and power sector decarbonisation are essential. It warns that growing electricity demand risks cannibalising clean power, unless renewable deployment accelerates.

Sandbag’s Response to the CBAM Calls for Evidence

Sandbag has submitted responses to the EU’s CBAM calls for evidence, addressing emissions reporting, adjustment for free allocation, and carbon prices paid abroad. We highlight risks such as loopholes and unequal treatment, and propose practical solutions to strengthen CBAM’s effectiveness and fairness.

CBAM impact on US trade: an analysis

Sandbag’s September 2025 research note explores the impact of the EU’s CBAM on US exports. It finds that even with expanded scope, the financial impact remains marginal — and US carbon pricing could turn net costs negative.

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).

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

Industry

Our policy recommendations on EU industry

CBAM

Our work on the Carbon Border Adjustment Mechanism

 

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Explore all of our data tools

Financing

Our research on EU funding

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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CBAM DRI loophole requires new free allocation reform

CBAM DRI loophole requires new free allocation reform

We took part in a targeted survey run by the European Commission’s DG TAXUD on methodologies used to calculate embedded emissions and the rules for adjusting CBAM obligations alongside free allocation under the ETS. Our proposal: free allocation should be reformed to close the ‘DRI loophole’.

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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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