European Union copper smelters and refineries are subject to EU ETS carbon costs, while imported refined copper is not charged under the current CBAM rules. Copper is not included in CBAM coverage, unlike aluminium and selected iron and steel products. The policy gap is relevant as the EU aims to strengthen strategic raw materials supply chains and domestic processing.
Copper is used across Europe’s energy transition, including electricity grids, renewable power generation, electric vehicle charging and industrial electrification. It is also used in data centres. For domestic processors, the key issue is whether they can compete with imported refined metal while meeting EU climate compliance requirements.
EU copper import values and supply sources
Eurostat data put EU copper imports at approximately €17.2 billion in 2025, up from €10.7 billion in 2019, although volumes remained broadly stable. Chile supplied 23% of import value, the Democratic Republic of Congo 17% and Brazil 15%. Copper supplies are relatively diversified compared with some other critical materials, but Europe remains a major net importer.
Demand for conductive metal is linked to investment in electricity networks, renewable energy, electric vehicle charging, electrified heating and data centres. As copper-intensive infrastructure expands, processing raw materials within Europe is presented as a way to reduce external supply-chain risks. In that context, the competitiveness of European smelting and refining is relevant to industrial security.
Downstream shifts if refining capacity declines
If European consumption rises while domestic refining capacity declines, dependence could move further downstream. Manufacturers could become more reliant on refined copper and semi-fabricated products made outside the EU rather than primarily importing ores or concentrates. That would affect efforts to retain processing value in the European economy and maintain resilient industrial supply chains.
The source of mineral resources alone does not ensure supply security when processing capacity is concentrated outside Europe. This is particularly relevant as the EU pursues its critical raw materials objectives. The issue connects carbon policy to industrial capacity planning for copper processing.
Copper production stages and carbon-related operating costs
Copper production runs from concentrate preparation through smelting, converting and refining to cathode copper. The refined metal is then used to make wire rod, tubes, foil and other industrial products. Each stage has different energy requirements and emissions characteristics, with electricity, fuel, oxygen production and process chemistry influencing environmental impact.
European smelters and refineries must manage energy expenses alongside applicable EU ETS costs. Imported refined copper faces no direct CBAM charge under current rules. As a result, domestic processors can face carbon-related operating costs without an equivalent border treatment that applies to covered aluminium and selected iron and steel goods.
Project economics for new smelting and refining capacity
The lack of direct CBAM coverage removes one element from the business case for new European copper smelting and refining capacity. Projects may still draw support from strategic status under the Critical Raw Materials Act (CRMA), recycling integration, secure concentrate supplies and long-term demand from industrial customers. Traceability and reliable delivery can also support relationships with manufacturers seeking more transparent supply chains.
Investors cannot assume that copper will receive carbon-border treatment available to covered metals. Facility plans depend heavily on electricity prices, processing efficiency, feedstock access, financing conditions and long-term offtake agreements. Affordable low-carbon electricity and advanced processing technology can lower operating costs and emissions.
Recycled copper offers another feedstock source, although scrap availability and quality limit how much secondary material can contribute to total supply. Long-term agreements with grid operators, renewable energy developers and industrial manufacturers can improve revenue visibility for new facilities. For banks and investors, the question is whether operational advantages can cover capital and energy requirements while offsetting the absence of a direct CBAM benefit.
Copper’s regulatory status within CBAM coverage
Copper highlights how carbon regulation intersects with industrial competitiveness and strategic material security. The EU seeks more domestic processing, yet CBAM does not cover every energy-intensive metal used in its industrial transition. Expanding coverage to copper would require regulatory decisions on product inclusion, emissions accounting and how border measures relate to domestic carbon pricing.
For now, European copper smelters and refineries compete without direct CBAM treatment available to certain other metals. Whether low-carbon electricity, recycling capabilities, improved technology and strategic supply agreements can sustain new investment remains tied to efforts to strengthen Europe’s copper processing industry. Copper could therefore be relevant in discussions about extending EU carbon-border policy beyond sectors originally covered.