European solar industry advocates are urging the European Commission to extend the Carbon Border Adjustment Mechanism to cover finished solar modules and components, aiming to level the playing field and curb carbon leakage from imports, particularly from Chinese exporters.

The European Solar Manufacturing Council (or ESMC) has officially urged the European Commission to expand the scope of the Carbon Border Adjustment Mechanism, or CBAM, so that it includes not just raw materials but also finished solar products—things like solar modules, mounting structures, and trackers. The reasoning behind this, well, at least from their perspective, is that many downstream solar components depend heavily on materials that are quite carbon-intensive—think aluminum, steel, and glass. And right now, these so-called 'finished products' aren’t really subject to the same carbon costs that apply to producers within the EU. This, in turn, ends up giving non-European manufacturers—especially Chinese exporters—what seems like quite a significant leg up in the market.

To give a better idea, the makeup of a typical solar module’s material shows this dependence on carbon-heavy inputs. For example, a standard module weighing about 22 kilograms contains roughly 14 kilograms of glass and around 3 kilograms of aluminum, with the rest made up of other parts. Similarly, structures used for ground-mounted solar arrays and trackers are mainly made from steel and aluminum. Now, while CBAM already governs the raw inputs—making sure their embedded carbon emissions are accounted for—the finished solar products made outside the EU aren’t covered. That’s a pretty big discrepancy in the rules, if you ask me. When European companies import steel and aluminum, they need to buy certificates that account for the embedded carbon emissions—so, they pay for their own “carbon costs.” But Chinese-made solar modules, for instance, can enter the EU market without that same obligation, effectively getting a "free pass" on the embedded emissions, according to the ESMC. This loophole, they say, seriously weakens the main goal of CBAM: preventing so-called 'carbon leakage', meaning the shifting of production to places with laxer environmental rules.

This debate, honestly, touches on some bigger tensions surrounding how the EU’s carbon border policy is being rolled out. CBAM, being the first of its kind—a kind of carbon border tax—aims to balance the playing field between EU producers, who are under the EU Emissions Trading System (ETS), and companies from outside the bloc. To start with, CBAM was set to cover emissions-heavy inputs like steel, aluminum, cement, and fertilizers, requiring importers to report the embedded emissions and, starting from January 2026, to buy certificates matching those emissions. But the thing is—current proposals from the EU don’t really include many finished downstream products, especially solar modules. And that creates distortions in competition in key industries that are crucial for the EU’s push toward green energy.

European manufacturers stress that this exemption—well, it actually makes the whole CBAM less effective—since it weakens the idea of a level playing field. Since solar energy is such a big part of the EU’s renewable goals and overall industrial plans, it’s vital that domestic producers are protected. The ESMC’s recommendations also align with broader efforts aimed at nurturing Europe’s solar manufacturing sector—an industry facing hurdles like higher costs and tough competition from Asia.

Meanwhile, the European Commission is reportedly gearing up some measures to prevent companies from bypassing the rules—what folks sometimes call 'regulatory circumvention'. As actors start to find ways to exploit loopholes, extending CBAM’s coverage to solar modules and parts seems connected to this broader crackdown. That said, reforming the system isn’t without its concerns—smaller importers and businesses worry about the costs and administrative hassle that might come with tighter rules. Recent EU initiatives, led by Tax Commissioner Wopke Hoekstra, aim to keep CBAM’s impact manageable—focusing charges mainly on the biggest importers. It’s a bit of a tightrope walk, trying to balance environmental goals with economic realities.

All told, the EU’s evolving approach to carbon border policy really highlights how tricky it is to align the urgent need for environmental action with the complexities of global trade. Pushing for CBAM to cover solar products—like being suggested by groups such as the ESMC—is basically a push for responsibility and accountability throughout the entire supply chain of clean tech. How the European Commission responds to these recommendations will be quite telling. It could significantly influence the competitive landscape for solar manufacturing in Europe, how fast the EU can push forward its green industrial strategy, and even impact broader climate policies worldwide.

Note: For references, check the sources—like Mercom India, SteelOrbis, and others as listed in the reference map.

Source: Noah Wire Services

Verification / Sources

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative is recent, published on 12 September 2025. The earliest known publication date of substantially similar content is 4 September 2025, as reported by SteelOrbis. The report is based on a press release from the European Solar Manufacturing Council (ESMC), which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. No republishing across low-quality sites or clickbait networks was identified. No similar content appeared more than 7 days earlier. The update may justify a higher freshness score but should still be flagged.

Quotes check

Score: 9

Notes: The narrative includes direct quotes from the ESMC's press release. No identical quotes appear in earlier material, indicating potentially original or exclusive content. No variations in quote wording were found.

Source reliability

Score: 7

Notes: The narrative originates from Mercom India, a reputable source in the renewable energy sector. The ESMC, mentioned in the report, is a legitimate organisation with a public presence. No unverifiable entities were identified.

Plausability check

Score: 8

Notes: The narrative's claims align with recent developments in the EU's Carbon Border Adjustment Mechanism (CBAM), as reported by Reuters on 5 September 2025. The ESMC's recommendations are consistent with broader efforts to support European solar manufacturing, as outlined in the European Solar Charter signed on 15 April 2024. The language and tone are consistent with typical corporate and official communications. No excessive or off-topic detail unrelated to the claim was found. The tone is appropriately formal and informative.

Overall assessment

Veredict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is recent and based on a press release from the ESMC, a reputable organisation. The claims are consistent with recent developments in the EU's CBAM and align with broader efforts to support European solar manufacturing. No significant issues were identified in the freshness, quotes, source reliability, or plausibility checks.