Italy is calling for a faster extension of the carbon dioxide emissions control mechanism (CBAM) to processed products, calling the current proposed start date of production - January 1, 2028 - too remote, says Minister of Enterprises and Made in Italy Adolfo Urso.
The comments were made at a recent meeting in Rome with representatives of other ministries and industry associations, including Federacciai, the Italian steel manufacturers association.
Urso noted that the volume of finished products covered by the expanded CBAM should be carefully determined in order to protect production value chains and avoid market distortions. He added that the possibility of any inclusion of ferrous scrap should be considered. Clarity is also needed on how the temporary decarbonization fund, designed to support exports, will function, as well as any mechanisms to prevent circumvention of CBAM.
Regarding the revision of the EU Emissions Trading System (ETS), Urso said that the first data obtained from CBAM should be taken into account and existing market distortions should be eliminated, starting with excessive price volatility related to speculation.
He added that for some energy-intensive sectors, climate neutrality currently remains technically and economically unattainable, which effectively turns ETS into an additional form of taxation. In this context, maintaining free benefits after 2034 would be a balanced solution that recognizes the efforts of companies already involved in decarbonization.
2026 should be a year of reforms and a turning point. "The European Commission now needs to take bold and pragmatic decisions to protect and revive European manufacturing in the most vulnerable sectors, such as the automotive and energy-intensive industries," the ministry said in a note obtained by Kallanish.
Author: Natalia Kapra
Kallanish.com
