EUROMETAL, 19 European industry associations and the IndustriALL European Trade Union have called for a wide extension of the carbon adjustment mechanism at the EU border (CBAM) to products of subsequent processing.
The joint statement was published on the EUROMETAL website on October 19, on the eve of the trilateral negotiations between the European Parliament, the Council of the EU and the European Commission scheduled for October 20. The signatories called on European politicians to agree on large-scale measures to protect industrial supply chains, investment and employment in Europe.
"Products subject to CBAM are subject to more equal competition conditions, which will allow them to continue to be produced in Europe," the statement said. — It will become increasingly difficult for goods that remain outside the framework of the mechanism to compete with imports: they may be forced out of the market or their production transferred to third countries where producers do not bear comparable carbon costs. As free quotas are gradually eliminated under the EU Emissions Trading System, this threat will increase."
CBAM now applies primarily to products with a high carbon footprint, including steel and aluminum. At the same time, free quotas are being gradually abolished within the framework of the EU Emissions Trading System. According to industry associations, manufacturers using these materials may face increased emissions costs, while imports of finished and semi-finished products from outside the EU will not bear a comparable burden.
This could put European manufacturers at a disadvantage and increase the risk that imports will displace their products and production will shift to countries with less stringent carbon emissions requirements. Such a scenario, the organizations note, may also weaken the incentives to invest in cleaner production in Europe.
Among the vulnerable industries, the signatories of the statement included construction, transport and automotive, mechanical engineering, energy, packaging and household appliances, environmentally friendly technologies, as well as other industries with high metal consumption.
EUROMETAL represents European companies engaged in the trade of steel, pipes and metals. The association believes that the competitiveness of the processing industries depends on the sustainability of the entire European steel supply chain. Previously, the organization has also repeatedly stressed the need to extend CBAM to products of subsequent conversions.
According to the association, the joint initiative is designed to ensure a coordinated approach in which European goods will not lose out due to carbon costs stipulated by legislation.
