The European Steel Association EUROFER has urged the European Commission to urgently review and enhance the Carbon Border Adjustment Mechanism (CBAM) ahead of the publication of the first official prices for carbon certificates. The new phase of CBAM implementation will begin on April 7, 2026, when the European Commission will announce the cost of CO2 that importers, including steel companies, must pay when bringing products into the EU.
This is reported by Finway
Critical Gaps in the Current CBAM Model
EUROFER reminded that financial obligations for importers under CBAM will take effect from January 1, 2026. The publication of carbon certificate prices will serve as the first clear benchmark for the cost of this mechanism for businesses. The association supports the introduction of CBAM, considering it a key tool in combating “carbon leakage” and a stimulus for the decarbonization of the European steel industry. However, the organization emphasizes that there are several critical shortcomings in the current version of the mechanism.
“EUROFER confirms that with proper refinement, CBAM can simultaneously provide effective support for climate policy and European industry. However, the current imperfections create a risk of not reducing emissions but merely relocating them outside Europe.”
These issues are particularly pronounced in the context of a record-high global surplus of production capacity in the steel industry, as well as due to a new surge in energy resource prices triggered by geopolitical factors.
EUROFER’s Proposals for Reforming CBAM
- Expanding the scope of CBAM to a broader range of products with low processing levels.
- Introducing mandatory standard values for goods and countries with a heightened risk of manipulation.
- Accelerating and expanding the temporary decarbonization fund.
- Creating a sustainable solution for exports as soon as possible.
- Strengthening requirements for steel traceability.
- Abolishing simplified procedures for exempting certain goods and countries from the mechanism.
- Harmonizing CBAM rules regarding international credits with the EU ETS system.
- Eliminating the exemption for the customs territory processing procedure.
According to the association, if these changes are not implemented, CBAM will not ensure a level playing field for European steel producers and may weaken both the EU’s climate and industrial goals.