The German Steel Association (WV Stahl) said the EU’s proposed reforms to the Carbon Border Adjustment Mechanism (CBAM) fail to address key shortcomings. While supporting CBAM as a vital tool to prevent carbon leakage and promote decarbonization, WV Stahl said the current proposals do not adequately close existing loopholes.

As CBAM takes effect on January 1 next year, the association cited major flaws in three areas: weak and unclear anti-circumvention measures, no relief for exports to third countries, and insufficient coverage of the value chain. 

WV Stahl urged mandatory country benchmarks during the transition period and an expansion of CBAM to steel-intensive downstream products.