The European Commission (EC) has submitted a new package of regulatory proposals aimed at addressing the identified shortcomings in the development of a Mechanism for Regulating Carbon Dioxide Emissions (CBAM). However, representatives of the steel industry argue that the proposed measures are not yet sufficient to ensure the effective functioning of CBAM.
Identifying gaps is not enough
According to Kerstin Maria Rippel, CEO of the German Steel Manufacturers Federation (WV Stahl), the Commission has correctly identified the key flaws in the current CBAM system, but the proposed remedial measures remain insufficient. From the federation's point of view, resolutely addressing existing gaps is a prerequisite for CBAM to achieve its core objective.
Measures to prevent circumvention are considered too weak
One of the main issues raised in
V. Stahl, it is related to the proposed approach to preventing circumvention of the rules. The Federation called these measures excessively slow, vague and unnecessary. Instead, V.
V. Stahl called for the mandatory application of standard emission values for a specific country during the transition period.
The burden of exports remains unresolved
The second key problem identified by the federation is the lack of a targeted and structural solution to reduce the burden on steel exports from the EU to third countries. According to the Federation, this gap should be eliminated by further distributing export volumes free of charge.
Limited coverage of the value chain creates risks
V.
V. Stahl also criticized the proposals for insufficient coverage of the entire value chain in the steel industry. To prevent such consequences, V.
V. Stahl argued that CBAM would need to be comprehensively extended to steel products, rather than applied piecemeal.
Dates and relevance until 2026
The Federation also expressed concern about the timing of the proposed measures. Due to the fact that the CBAM is due to enter into force on January 1, 2026,
V. Stahl noted that the need for corrective actions has been obvious for some time, but there are still no effective solutions. In this regard, he called for immediate action to address the shortcomings and stressed that until a fully functional CBAM system is established, the German federal Government should continue to strongly advocate for the preservation of existing exceptions.
Against the background of increasing global competition,
V. Stahl warned that partial or incomplete
