The State Federation demands urgent clarifications on CBAM
The State Federation of the Netherlands has issued an urgent call for clarification on the implementation of the Carbon Emissions Regulation Mechanism (CBAM), warning that the current system could lead to serious disruptions in the Dutch manufacturing industry and in the broader European steel supply chains.
According to Staalfederatie, the implementation of CBAM, designed to apply a carbon price to imported products to ensure a level playing field with EU producers who adhere to strict climate policies, remains extremely difficult in practice for the Dutch steel company market. Although this mechanism is aimed at preventing carbon leakage and protecting European industry, its rapid implementation creates uncertainty throughout the supply chain.
The main problem is the lack of a fully operational procedure for checking embedded emissions. The first financial settlement under CBAM will be made in 2027 for imports made in 2026. However, it is currently unclear to importers how the actual emissions will be verified. Meanwhile, many companies have to rely on default values set at the EU level. It is reported that these values significantly exceed the expected real emission intensity, which leads to a potential overestimation of cost forecasts.
This uncertainty makes it difficult for importers to determine the final costs and, consequently, what should be passed on to consumers. The Federation warns that this situation could have serious consequences for the competitiveness of processing companies operating in the Dutch manufacturing sector. Currently, comparable fees have not yet been introduced for many processed products, which increases the risks of market imbalance.
Staalfederatie also points to broader implementation issues. It is argued that the available calculation tools and current default values do not provide a realistic picture of the financial consequences. In some cases, existing commercial contracts may be economically unprofitable if all the costs of CBAM are taken into account. As a result, price predictability is reduced and the stability of the supply chain may suffer.
In addition, practical compliance obligations, including mandatory registration in the CBAM registry and permission from the Dutch Air Emissions Authority to import more than 50 tons of steel or aluminum, further complicate administrative work.
In this regard, Staalfederatie calls for the CBAM system to be simplified and operationally operational as soon as possible. In particular, it contains