The EU’s Carbon Border Adjustment Mechanism (CBAM) is impacting fertilisers and hydrogen exports and is expected to impact organic chemicals and polymers with the anticipated extension of its scope. Businesses in our region need to adapt to the new rules and explore low-carbon options. It’s crucial to prepare for compliance and seize new opportunities for sustainability.
The GCC chemical industry is highly export-driven, with Europe as the third-largest market. This export reliance makes the GCC chemical industries especially sensitive to regulatory shifts such as the EU CBAM.
Starting January 1, 2026, the definitive phase of CBAM takes effect—bringing with it significant compliance requirements and cost implications for exporters. Producers of CBAM-covered goods must assess how carbon pricing will affect their profitability, pricing models and supply chain strategies. The pressure to shift toward low-carbon production is not just regulatory - it’s a business imperative.
Are you prepared for these changes?
In our latest paper with the Gulf Petrochemicals Chemical Association (GPCA), we explore the EU CBAM's impact on fertilisers and chemicals – and how Middle East companies can prepare, comply, and unlock new growth through sustainable innovation.
Let's prepare for these changes together - mitigate risk, stay competitive and lead the low-carbon future.
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