French Ultramarine Economies Oppose EU Carbon Border Adjustment Amid High Costs and Environmental Concerns

The implementation of the EU's Carbon Border Adjustment Mechanism (MACF) is facing strong opposition from the Mouvement des Professionnels de l'Industrie (MPI) and France's ultramarine economic sectors. Franck Desalme, president of MPI, warned on May 18, 2026, that MACF threatens the survival of these territories' economies, which already grapple with high structural costs due to their insularity and elevated living expenses.

The MACF is expected to impose significant tariff shocks, particularly impacting critical sectors like construction and agriculture. The construction industry faces a 34% price increase for cement by 2026, primarily driven by MACF-related costs. Agricultural producers are similarly burdened, with higher taxes on imported fertilizers leading to widespread increases throughout the food supply chain.

Desalme emphasized that the MACF was designed with continental industries in mind, failing to accommodate the unique challenges of island economies reliant on far-flung imported materials, which already contribute to a larger carbon footprint. This creates an ecological paradox: while MACF intends to support environmental transition, it penalizes regions essential for carbon absorption, such as Guadeloupe's mangroves and forests, crucial in the fight against climate change.

This opposition highlights the tension between EU climate policies and the safeguarding of fragile local economies in French ultramarine territories, underscoring the need for policy adjustments that consider geographic and economic particularities.