European steelmakers are urging for urgent improvements to the Carbon Border Adjustment Mechanism (CBAM) before its planned launch in 2026. The industry has been subject to the EU Emissions Trading System (ETS) since 2005, facing a unilateral carbon price that has recently reached around €75 per ton of CO2. Meanwhile, over 25 million tonnes of steel (around 20% of EU production) are imported annually from third countries without any carbon cost.
The steelmakers emphasize the need for a watertight design to ensure the CBAM's effectiveness in preventing carbon leakage and supporting decarbonisation investments. They propose introducing a structural solution to preserve European exports, implementing stricter rules against circumvention practices, and extending the CBAM’s scope to steel-intensive downstream sectors.
The industry also calls for simplifying administrative procedures to minimize the burden on operators while ensuring the mechanism's environmental integrity. These changes are crucial to maintain the competitiveness of the European steel industry and prevent the relocation of production to third countries.