The European Commission (EC) has presented a new package of regulatory proposals aimed at addressing identified shortcomings in the development of the Carbon Border Management Mechanism (CBAM). However, representatives of the steel industry argue that the proposed measures do not yet go far enough to ensure the effective functioning of CBAM.
Insufficient identification of gaps
According to Kerstin Maria Rippel, CEO of the German Steel Federation (WV Stahl), the Commission has correctly identified key shortcomings in the current CBAM system, but the proposed remedial measures remain insufficient. From the federation's point of view, decisively closing existing gaps is a prerequisite for CBAM to achieve its main goal.
Anti-circumvention measures are considered too weak
One of the main problems raised by V. V. Stahl is related to the proposed approach to preventing circumvention. The federation called the measures too slow, vague and non-binding. Instead, WV Stahl called for the mandatory application of country-specific emissions standards during the transition period.
Export burden remains unresolved
The second key problem identified by the federation is the lack of a targeted and structured solution to ease the burden of steel exports from the EU to third countries. According to the federation, this gap should be addressed by continuing the free allocation of export volumes.
limited scope of the value chain creates risks
B. W. Stahl also criticized the proposals for failing to sufficiently cover the entire steel value chain. To prevent such consequences, V.
V. Stahl argued that CBAM would need to be comprehensively extended to downstream steel products, rather than applied piecemeal.
Timing and urgency ahead of 2026
The Federation also expressed concerns about the timing of the proposed measures. Since the CBAM is due to come into force on January 1, 2026, V. V. Stahl noted that the need for corrective actions has been obvious for some time, but there are still no effective solutions. He therefore called for swift action to address shortcomings and stressed that as long as
