The European Panel Federation (EPF), together with Assopannelli (FederlegnoArredo), is calling for the suspension of the Carbon Border Adjustment Mechanism (CBAM) on industrial urea, following a joint meeting held today in Milan.
Industrial urea is a critical raw material for the production of adhesives and resins used in wood-based panels for construction and furniture. From 1 January 2026, CBAM will impose carbon costs on imports of urea, despite the fact that European production currently covers only around 20% of industrial demand, making imports structurally unavoidable.
According to estimates shared by Assopannelli and EPF, the application of CBAM to industrial urea could lead to an increase in wood panel production costs of up to 10–12% over four years, with serious consequences for the competitiveness of the entire European wood and furniture value chain.
“Applying CBAM to industrial urea without adequate corrective measures risks penalising European manufacturers rather than protecting them,” said Matti Rantanen, Managing Director of EPF. “Urea is used not only in agriculture but also as a key input for industrial glues and resins. While we support the objectives of CBAM, its current scope risks distorting the internal market and weakening downstream industries.”
EPF underlines that CBAM currently applies to raw materials and semi-finished products, but not to finished products. This creates an uneven playing field, potentially favouring furniture manufactured outside the EU, even when it contains the same carbon-intensive inputs.
The sector’s concerns are heightened by the fact that the European wood-based panel industry is already highly sustainable: more than 60% of panels produced in Europe are made from recycled wood.
“CBAM was designed to prevent carbon leakage, yet in its current form it risks producing the opposite effect for a sector that is deeply embedded in the circular economy,” said Paolo Fantoni, President of Assopannelli.
EPF and Assopannelli will continue to work jointly to raise awareness among European institutions and to advocate for a policy framework that supports both climate objectives and industrial competitiveness across the European panel and furniture sector.
For further details, the full joint press release is available here.