CBAM can help "level the playing field" for EU importers, but it will also disrupt competition and jeopardize the competitiveness of European steel producers, experts said at the Kallanish Europe Steel Markets 2025 conference in Amsterdam on Tuesday.
"European steel mills are located in we are already facing the costs of ETS[Emissions Trading System]. It's simple," said Jaap Jan Aardenburg, head of Tata Steel's sales department in the Netherlands.
He called it a "misconception" that all EU plants receive free emission quotas in accordance with the ETS. "In order to create a level playing field for everyone, importers do not pay any carbon costs. And to equalize this, so that we all face the same cost levels, we have implemented the CBAM system," he explained.
However, Aardenburg also recognized the difficulty of implementing CBAM and the need for a workable solution that would balance the interests of both steel producers and consumers. He warned that the lack of clarity from the European Commission was already causing distortions in the market.
"CBAM is also a direct tax, and it cannot be compensated," said Alexander Julius, member of the Board of EUROMETAL. He said that steel producers producing products in Europe will also feel the impact of CBAM, which will "minimize" their competitiveness, and as a result, exports of finished products will also decrease.
Julius also highlighted the administrative burden placed on importers, questioning the wisdom of requesting emissions data from about 100,000 suppliers. all over the world. He stressed that exporters from third countries need to register with the Commission in order to simplify compliance with the requirements.
He also called on the Commission to speed up the development of recommendations and technical clarifications so that the industry can accurately assess the cost of products in accordance with the new regime.
The panelists also noted that the ongoing risks in the energy supply sector, especially in France, exacerbate price pressures on European enterprises, which already face a high regulatory burden.
Sukhita Poddar India
kallanish.com
