EU CBAM tax – Orlen is sounding the alarm. The system is full of holes and Russia is flooding us with products
CBAM, i.e. the EU mechanism for adjusting prices at borders taking into account CO emissions2is to be a shield for European industry. According to Orlen Group representatives, although in theory it is a good tool, it still requires refinement. In the fertilizer industry, there are cases of bypassing the new mechanism. As they emphasize, while in some sectors the system must be tightened, in others it must be completely abandoned.
– The CBAM mechanism introduced by the European Union may be quite a good system to protect the European market and industry. However, we still do not see the effect of these regulations. In our opinion, they are severely underdeveloped. We either focus on protection or allow part of the market to operate regardless and bypass CBAM regulations, says Witold Literacki, vice-president of the management board for corporate affairs at Orlen SA, to the Newseria agency.
CBAM (Carbon Border Adjustment Mechanism) is the EU mechanism for adjusting border prices taking into account carbon dioxide emissions. It concerns the import of certain goods into the European Union and its purpose is to evaluate greenhouse gas emissions generated during their production in third countries. The mechanism was introduced as a shield against the so-called carbon leakage. It occurs when companies based in the EU move their high-emission production abroad, where climate policy is less stringent, and then export their products to the EU market. This means that products from the European Union are replaced by cheaper imported products with higher carbon dioxide emissions. Through CBAM, imported goods are also expected to bear the cost of emissions. This is to eliminate competitive advantage based on cheap but climate-damaging production.
– The CBAM idea is good, but should we rely solely on it in the development of the EU economy and production in the European Union? Honestly, no. We should be competitive in ourselves, and not rely solely on limiting the supply of cheaper products from outside the EU – emphasizes Witold Literacki.
CBAM is supposed to protect the competitiveness of the economy, but things are different
The implementation of the CBAM mechanism is intended to protect the competitiveness of the economy, support the maintenance of existing and the creation of new jobs in industry throughout the European Union. The problem is that – according to experts – not everything works as it should yet.
– CBAM regulations are being bypassed in the field of fertilizers, which are very important to us. Anwil has serious problems related to the incredibly large inflow of fertilizers from Russia and Belarus, outside the EU, which are produced in violation of the climate rules imposed by the European Union. Yet they are flooding the European market and, unfortunately, destroying our plants – explains the vice-president of Orlen.
According to Eurostat data, in the third quarter of 2025, Russia was the second largest supplier of fertilizers to the European Union, its share in imports from outside the Community was 13%. (although a quarter earlier it was over 33%). Some Russian and Belarusian fertilizers, including those based on nitrogen, phosphates and potassium, were not subject to import restrictions or duties until mid-last year, when the Community imposed duties and controls on them.
– Reducing the inflow of fertilizers from Russia could help our chemical industry. The European Union, buying fertilizers from the East, will finance the war with Ukraine with its own money earned in the European Union – emphasizes Witold Literacki.
Data from the European Commission show that fertilizer imports to the EU decreased from nearly 2.5 million tonnes in January 2025 to 1.1 million tonnes in January 2026. Farmer organizations that are concerned about the situation are warning that this is the result of the introduction of fees under the CBAM mechanism. In turn, the organization of European fertilizer producers, Fertilizers Europe, estimates that this decline was influenced by many factors, including: the inflow of fertilizers in December 2025 is almost twice as high as last year.
There are industries where CBAM should work, but unfortunately it does not
The Polish Chamber of Chemical Industry also draws attention to the risk of circumventing the CBAM mechanism. Nevertheless, it is considered an important tool that protects and levels the conditions of competition between EU and non-EU producers. The chamber's demands include strengthening measures to prevent CBAM circumvention, e.g. introducing more effective control mechanisms and strengthening the verification mechanism.
– There are industries in which CBAM should work, but unfortunately it does not. At this point, it is a tool that is underutilized. In our opinion, there are also some areas where CBAM should not work. There is oil and gas that we import from outside the EU. Imposing a tax on these energy sources would only increase prices for consumers, so it would be ineffective. This tool must be used, but wisely and wisely – emphasizes the vice-president of the Orlen management board for corporate affairs.
The CBAM mechanism covers goods including: from the fertilizer, cement, iron and steel, aluminum sectors, but also electricity and hydrogen. However, the fees apply only to selected products defined by the appropriate CN codes.
Representatives of the cement industry also have concerns about the tightness of the system. As they emphasize, without effective CBAM, cheap cement from countries outside the European Union will still compete with European production. The Association of Cement Producers estimates that last year a record 1.7 million tons of cement could be imported to Poland, of which almost 1 million from Ukraine.
The CBAM mechanism and its impact on European industry was one of the topics of the expert debate “Poland 2026. Horizon of change”, organized by the European Commission, the European Parliament and the Newseria agency. Orlen was the strategic partner of the event.
