The Carbon Border Adjustment Mechanism (CBAM) will test whether the EU can address carbon leakage while keeping investment in Europe. As implementation of the CBAM advances, companies face costs and reporting duties under rules that are still taking shape. Preventing carbon leakage matters. However, the CBAM should work in practice before scope extension is considered. Moving too soon could place burdens on companies and disrupt value chains, with consequences for investment and trade. The focus should be on avoiding measures that introduce further uncertainty and extending proposed safeguards in the Temporary Decarbonisation Fund beyond 2027. Learn how to shape the CBAM so it prevents carbon leakage while maintaining competitiveness. 

Europe’s clean industrial transition will depend on policies that can unlock investment, strengthen energy systems and support sustainable transport. From Tuesday, 16 to Wednesday, 17 June, AmCham EU travelled to the European Parliament in Strasbourg, France for a series of meetings on EU transport, energy and climate policy developments. The delegation engaged with Members of the European Parliament and political group advisers to share business perspectives on Europe’s clean industrial transition. Discussions focused on the Industrial Accelerator Act, the revision of the EU Emissions Trading System, the Carbon Border Adjustment Mechanism, the Grids Package and energy security. Members highlighted the need for predictable, technology-neutral rules that support investment, strengthen Europe’s industrial base and preserve openness to trusted partners.

The Industrial Accelerator Act will be a key test of whether the EU can strengthen industrial competitiveness while advancing decarbonisation. With significant pressure already weighing on businesses in Europe, from high energy costs and supply chain disruptions to unnecessary red tape and intensifying global competition, getting that balance right matters. If Europe fails to send clear signals that it remains a predictable place to invest, capital will go elsewhere.

AmCham EU supports the objectives of the IAA, but its success will depend on how it is designed. A central question in the debate is how ‘European preference’ should be approached. Strengthening Europe’s economic resilience and security is a legitimate objective. However, an approach that creates uncertainty for companies from partner countries, particularly by leaving key decisions to secondary legislation, risks undermining investment and limiting access to the technologies needed for the transition.

The focus should instead be on providing clarity early and rewarding companies that create real EU-added value through manufacturing, R&D, skills and emissions reductions. Learn more in our full paper.

On Tuesday, 17 February, AmCham EU met with Caleb Orr, US Assistant Secretary of State for Economic, Energy and Business Affairs, to exchange views on transatlantic economic priorities. Malte Lohan, CEO, opened the discussion by highlighting the importance of a strong and predictable business environment for US companies operating in the EU. The exchange focused on regulatory and investment conditions affecting international business, as well as the broader EU-US trade relationship and the value of continued economic cooperation. Participants also discussed cooperation on critical mineral supply chains, underlining the importance of coordinated transatlantic efforts to strengthen economic security, resilience and competitiveness. 

The upcoming Circular Economy Act represents a crucial opportunity to address longstanding business challenges through simplification and the strengthening of the Single Market. Its success depends on revising the Waste Framework Directive (WFD) and the Waste Electrical and Electronic Equipment (WEEE) Directive, re-opening some provisions of the Waste Shipment Regulation (WSR) and the Single Market Transparency Directive, promptly adopting secondary legislation under the Packaging and Packaging Waste Regulation (PPWR) and implementing financial flanking measures where necessary.

Europe’s environmental rules have become increasingly complex, creating contradictory and duplicative requirements that undermine the EU’s competitiveness globally. With the Environmental Omnibus, the EU has an opportunity to streamline its most complex rules. Tackling overlaps, inconsistencies and excessive reporting obligations would improve legal clarity, enhance predictability and strengthen the business case for investment and the clean transition. From permitting to product sustainability, waste, chemicals and beyond, learn why clearer rules will drive Europe’s competitiveness and accelerate the green transition.