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The Carbon Border Adjustment Mechanism (CBAM) could disrupt the Italian and European particleboard industry reliant on urea, affecting competitiveness. Assopannelli and the European Panel Federation warn that while CBAM aims to prevent carbon leakage, it may harm sustainable sectors.

The urea tax increases costs by €40-60 per ton, potentially raising production costs by 10-12% for wood panels. With EU urea production meeting only 20% of demand, reliance on imports is critical. The European Commission considers temporary exemptions amid pressures from farmers and manufacturers.