The European Steel Association (EUROFER) emphasized the urgent need to improve and implement the Carbon Border Adjustment Mechanism (CBAM) before its scheduled launch in 2026. Over 25 million tons of steel, 20% of EU production, are imported annually from countries without carbon costs, while European steelmakers face a carbon price of EUR75/ton CO2 under the EU Emissions Trading System (ETS).

EUROFER highlighted CBAM’s importance in preventing carbon leakage and supporting investments in steel decarbonization but warned of significant risks due to the steel sector’s complexity. The association calls for measures to safeguard European exports, stricter anti-circumvention rules, and expanded CBAM coverage to downstream sectors.

Additionally, EUROFER advocated for minimizing administrative burdens, including revised reporting thresholds and exemptions for re-imported EU products. These changes must be implemented this year to ensure CBAM’s effectiveness and protect the EU steel industry’s competitiveness before the final phase-out of free allowances.