EU industrial companies affected by the major changes in carbon costs resulting from the new EU ETS rules and the Carbon Border Adjustment Mechanism (CBAM) need to develop strategies to address them if they have not already done so. Otherwise, they will fall behind those who have. Pablo Ruiz from Rabobank summarises their analysis and conclusions. Ruiz presents a roadmap for each of the different starting positions. The study looks at critical variables for industrial decarbonisation: carbon and energy intensity, investment options and the expected effects of CBAM on sectoral business models. It illustrates how different strategies for purchasing carbon allowances and/or investing in decarbonisation may or may not deliver significant savings compared to a business as usual scenario. The timing of decisions and pathways are crucial, and the analyses cover the period from now until 2030. Companies need to assess where they stand in relation to their competitors and potentially new competitive sectors. And at the EU level, successfully managing industrial decarbonization could unlock profound growth opportunities for the European Union as it seeks its place in an ever-changing world, says Ruiz. (Pablo Ruiz)