The EU Carbon Border Adjustment Mechanism (CBAM) takes effect on January 1, 2026, applying carbon charges to imports such as steel, cement, aluminum, fertilizers, and electricity.

For Europe’s steel industry, 2026 will be a critical year. Although CBAM will have a major impact on global trade, it also encourages steelmakers that are serious about cutting carbon emissions. 

As a result, European producers are pushing ahead with low-carbon steel projects, especially direct reduced iron (DRI) plants that do not rely on coke. Several major green steel projects in Sweden, Germany, Spain, and the Netherlands are expected to start operations between 2026 and 2027.