The European steel industry stated that after the decision of the European Parliament, the EU still does not have equal conditions for all market participants. MPs supported the expansion of the carbon adjustment mechanism at the border, or CBAM, for recycled steel and aluminum products.
464 deputies voted in favor of extending the scope of the mechanism to finished products, including fasteners, wire, springs and household goods, 50 were against, 159 abstained. The initiative is aimed at combating carbon leakage in the processing industry, where imported steel products are increasingly entering the EU market without the emissions costs incurred by European producers.
"Today's vote is a step in the right direction, but it still does not create a level playing field for European industry. The proposed coverage remains incomplete, implementation is too slow, and there is still no solution for EU exporters who continue to incur carbon costs in the face of global competition," said Alexander M. Julius, President of Eurometal.
"In addition, CBAM alone is not able to offset the more serious costs faced by European producers due to high steel prices and regulatory pressures. If Europe wants to prevent carbon leakage and deindustrialization, it must protect the entire value chain," he added.
The Federation called for extending the CBAM to all products with high steel and aluminum content, speeding up the implementation of the mechanism and strengthening support for European exporters. According to the organization, the EU's industrial policy should protect production within the union, rather than encourage its transfer to other countries.
The German Steel Industry Association Wirtschaftsvereinigung Stahl has also called for increased protection for EU exporters who continue to face European carbon costs. The association noted that it is important for the Parliament to coordinate the regulations with the European Commission and the Council of the EU as soon as possible.
Before the vote, the European Steel Producers Association Eurofer supported the proposal, but called for stricter rules to prevent circumvention of the mechanism, taking into account the large-scale investments needed by the industry to decarbonize.
"European steel producers are investing billions in cleaner production, but this transition is impossible without equal competition conditions. MEPs can strengthen CBAM so that investments in low—carbon steel in Europe make economic sense," said Axel Eggert, CEO of Eurofer.
"Europe must create conditions for