The European Steel Association (EUROFER) said the European Commission's latest proposals for a Carbon Border Adjustment Mechanism (CBAM) recognize several structural weaknesses that could undermine the effectiveness of the instrument. These include shortcomings related to EU exports, recycling sectors and circumvention practices.
Identifying shortcomings is only a starting point
However, EUROFER warned that the proposed measures are not yet a comprehensive or long-term solution that can prevent carbon leakage and jobs. According to EUROFER CEO Axel Eggert, acknowledging the shortcomings of CBAM is only a starting point. He stressed that the remedies currently proposed by the Commission do not meet the level of protection required by the European steel industry. Eggert stressed that without robust and waterproof solutions from the start, CBAM will not be able to support the decarbonization of the steel sector while maintaining global competitiveness.
Carbon leakage associated with exports remains unaddressed
The association argues that the Commission's approach remains fragmented and lacks a structured, long-term solution. The proposed export-related measures are time-limited, covering only a two-year period, and have a narrow scope, covering less than a quarter of EU steel exports. Additionally, funding for the proposed Decarbonization Transition Fund remains uncertain. EUROFER warns that
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