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European industry urges EU to extend CBAM to more imported products

European industry urges EU to extend CBAM to more imported products

European steelmakers and industry groups have urged EU institutions to extend the Carbon Border Adjustment Mechanism (CBAM) to the widest possible range of downstream products. Their joint statement was issued during trilogue talks between the European Parliament, the Council of the EU and the European Commission.

Signatories include EUROFER, EUROMETAL, ESTA, EUNIRPA, EUROFORGE, Europacable, European Aluminium, EWRIS, FEC, Metal Packaging Europe, Steel for Packaging Europe, Electromechanics Synergy Network and industriAll European Trade Union.

The signatories say broader CBAM coverage is needed to protect European industrial value chains, investment and jobs from production shifting to countries with lower carbon costs and from imports that do not face comparable charges.

Steel and aluminium manufacturers face rising carbon costs across their supply chains, while finished and semi-finished products from third countries can enter the EU market without equivalent costs. The groups warn that these risks will grow as free emissions allowances under the EU Emissions Trading System (ETS) are phased out.

Sectors exposed to carbon-intensive imports include energy, automotive and other mobility industries, machinery, construction, packaging, clean technologies and defence. Household appliances, cookware and cutlery, catering equipment, hand tools and other metal products are also affected.

Including these products in CBAM would create more balanced competitive conditions, the signatories say. Sectors left outside the mechanism could face import substitution and production moving beyond the EU. The groups urged negotiators to build on the positions of the European Parliament and the Council and ensure the broadest possible downstream coverage, while prioritising European production, investment and employment.

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