Background
The EU Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on 1 January 2026. Importers bringing iron and steel, cement, fertilisers, aluminium, electricity and hydrogen into the EU must now account for the emissions embedded in those goods. Certificate sales begin in February 2027, and the first annual declarations are due in September 2027. Where the exporting country operates its own carbon price, that cost can be credited against the CBAM liability. Where it does not, the full cost lands on the exporter.
Cement, nitrogen fertilisers and iron and steel all rank among Algeria’s exports to the European market, and all three fall under CBAM. The country has no carbon pricing instrument in place, and facility-level emissions monitoring remains fragmented, which means exporters may struggle to substantiate their actual embedded emissions and default values would apply instead.
HEAT Services
On behalf of GIZ, HEAT leads a technical study that gives Algerian institutions a consolidated evidence base for responding. The work is commissioned under the TaqatHy+ and ClimGov2 programmes, co-financed by BMZ and the European Union, and delivered with the Ministry of Energy and Renewable Energies as lead national partner, together with the Ministry of Environment and Quality of Life and the Ministry of Finance.
The study covers five stages:
- Exposure and financial assessment. Identification of CBAM-covered goods by customs code, mapping of export-oriented installations, and quantification of the economic and financial impact, including cost pass-through analysis and scenario modelling.
- Environmental, climate and social implications. Emission reduction potential, carbon leakage risk, employment and local price effects, a gap analysis of national monitoring, reporting and verification readiness, and a review of domestic carbon pricing options.
- Sector case studies. At least three case studies across iron and steel, fertilisers and cement, translating the national picture into decisions individual installations can act on.
- Policy and institutional measures. A menu of support measures for Algeria’s policy partners, including a proposal for a national body to coordinate carbon pricing across ministries.
- Consolidation and transfer. A final report with an implementation roadmap, technical training, and a closing workshop with national stakeholders.
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