The European Steel Association (EUROFER) said that the Carbon Boundary Regulation Mechanism (CBAM) is full of loopholes, and if left unchecked, it will undermine investment in decarbonization, accelerate deindustrialization, favor production to third countries, and fail to reduce global emissions. The association said the European steel industry's efforts to transition to a green economy risk being undermined by cheap and carbon-intensive imports.
Noting that 70% of EU steel exports go to countries where there are no carbon prices, EUROFER stressed that the lack of a solution to preserve exports is a serious loophole that has a negative impact not only on competitiveness, but also on the climate, as EU exports will be displaced by more carbon-intensive products.
In order to improve CBAM's efficiency and eliminate loopholes, EUROFER stated that free funds should continue to be allocated for exports to avoid carbon leakage to global markets; resource redistribution should be prevented; CBAM should be extended to products that require high costs for steel processing; for 304 stainless steel, which has higher emissions, there should be restrictions have been set; compensation for indirect costs of steelmaking should be continued, and indirect emissions of ferroalloys should be included in CBAM; the origin of CBAM goods should be indicated where the steel was smelted and cast; the internal processing procedure should be discontinued to avoid serious environmental problems; and benchmarks for the free distribution of rolled products and stainless steel they should reflect product quality requirements. the most climate-friendly methods.
Steelorbis.com
