A coalition of 162 European industry associations and companies, including the European Steel Manufacturers Association (EUROFER), the European Federation for Distribution and Trade of Steel, Pipes and Metals (EUROMETAL), as well as major manufacturers such as ArcelorMittal, thyssenkrupp and Voestalpine, called on EU policymakers to expand the scope of the Carbon Boundary Regulation Mechanism (CBAM).
Industry stakeholders argue that although the CBAM program is aimed at eliminating carbon leakage risks in the production of materials such as steel and aluminum, it does not apply to processed products. Because of this limitation, a significant portion of the value chain depends on imports that do not involve equivalent carbon costs.
Processing industries are facing increasing pressure
Industries such as energy, mobility, construction, mechanical engineering, packaging, defense, and household appliances are increasingly affected.
These industries face rising costs under the EU's climate policy, while competing imports benefit from less stringent environmental regulations, creating a competitive imbalance.
The risk of carbon leakage is shifting downstream
The coalition warned that the current system could inadvertently increase carbon leakage down the value chain rather than eliminate it. This creates the risk of shifting production to regions with lower environmental standards, which undermines the EU's climate goals.
According to industry representatives, the failure to expand CBAM may weaken the incentives for investment in low-carbon production. The current system risks distorting supply chains and reducing the effectiveness of decarbonization policies.
We call for a quick and simplified expansion
The coalition calls on the European Parliament and the Council to expand CBAM quickly and simplistically to include products requiring steel and aluminum recycling. Such a step is seen as important for ensuring equal conditions and protecting European industry.
Axel Eggert, CEO of EUROFER, stressed that without broader coverage, importers can avoid carbon costs by redistributing emissions downwards. He stressed that the expansion of CBAM is necessary to maintain fair competition and ensure that the mechanism achieves its environmental and industrial goals.
Author: SteelOrbis Editorial Team
Steelorbis.com
