Impact of the CBAM and the RED III directive on the competitiveness of the industrial sector

The complex global economic and geopolitical situation poses significant risks for Basque and European industry. This document analyses the potential impact on the competitiveness of the industrial sector of two recently updated regulations in the European Union (EU) aimed at protecting the competitiveness of industrial companies while promoting the decarbonisation of their activities: (a) the update of the Renewable Energy Directive, known as RED III; and (b) the Carbon Border Adjustment Mechanism (CBAM).