European Union copper smelters and refineries are subject to applicable carbon costs under the EU Emissions Trading System (EU ETS). At the same time, imported refined copper is not charged directly under the current Carbon Border Adjustment Mechanism (CBAM). Copper is not included in CBAM coverage, unlike aluminium and selected iron and steel products. The policy gap is relevant as the EU seeks to strengthen strategic raw materials supply chains and domestic processing.
Copper is used in electricity grids, renewable power generation, electric vehicle charging and industrial electrification. It is also used in data centres. For domestic processors, the central issue is whether they can compete with imported refined metal while meeting EU climate compliance requirements.
EU copper import values and supplier mix
Eurostat data put EU copper imports at approximately €17.2 billion in 2025, up from €10.7 billion in 2019. Import volumes remained broadly stable over the same period. Chile supplied 23% of import value, the Democratic Republic of Congo 17% and Brazil 15%. Overall, copper supply is 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 in Europe is presented as a way to reduce external supply-chain risks. In that context, the competitiveness of domestic smelting and refining is relevant to industrial security.
If European consumption increases while domestic refining capacity declines, dependence could shift further downstream. Manufacturers could rely more on refined copper and semi-fabricated products made elsewhere rather than importing ores or concentrates. This would affect efforts to retain processing value within the European economy and build resilient industrial supply chains. Access to mineral resources alone does not ensure supply security when processing capacity is concentrated outside Europe.
Copper production stages and carbon-related operating costs
Copper production starts with concentrate preparation and proceeds through smelting, converting and refining to cathode copper. The refined metal is then used to make wire rod, tubes, foil and other industrial products. Different stages have different energy requirements and emissions characteristics. Electricity, fuel, oxygen production and process chemistry all influence the environmental impact of processing.
European smelters and refineries must manage energy expenses alongside applicable EU ETS costs. Those costs can affect competitiveness when compared with imports that do not face a direct CBAM charge for refined copper. As a result, domestic processors can face carbon-related operating costs without equivalent border treatment available for covered aluminium and selected iron and steel goods.
Project economics for new smelting and refining capacity
The lack of direct CBAM coverage removes one component that could support 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 copper will receive carbon-border treatment available to covered metals.
Facility economics depend heavily on electricity prices, processing efficiency, feedstock access, financing conditions and long-term offtake agreements. Affordable low-carbon electricity and advanced processing technology could lower operating costs and emissions. Recycled copper provides an additional 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 these operational advantages can cover capital and energy requirements while offsetting the absence of a direct CBAM benefit. Low-carbon power, recycling and technological improvements are therefore expected to support commercial returns without relying on CBAM coverage that currently does not apply to copper.
Regulatory scope for potential future CBAM coverage
Copper highlights how carbon regulation interacts with industrial competitiveness and strategic material security. The EU aims for more domestic processing, but CBAM does not cover every energy-intensive metal used in its industrial transition. Expanding coverage to copper would require regulatory decisions on product coverage, emissions accounting and how border measures relate to domestic carbon pricing.
For now, European copper smelters and refineries compete without the direct CBAM treatment available to certain other metals. Whether low-carbon electricity, recycling inputs, improved technology and strategic supply agreements can sustain new investment remains tied to efforts to strengthen Europe’s copper processing industry. Copper may also be referenced in discussions about extending EU carbon-border policy beyond sectors originally included.