The China Iron and Steel Association (CISA) has announced that it has held a high-level symposium to assess the implications of the EU’s Carbon Border Adjustment Mechanism (CBAM) on Chinese steel exports.
The symposium brought together more than 140 participants, including representatives from major producers such as China Baowu Steel Group, Ansteel Group, HBIS Group, CITIC Pacific Special Steel, Nanjing Iron and Steel, Jiangsu Shagang Group, and Delong Steel Group. Stakeholders from both upstream and downstream industries also participated in the discussions.
With steel included in the first phase of CBAM implementation, Chinese producers are expected to face higher export costs and stricter requirements to disclose detailed carbon footprint data. Given that the EU remains a key export market, the financial and operational impact is expected to be significant.
Potential expansion to downstream products
According to CISA, the EU is considering extending CBAM coverage to around 180 downstream steel- and aluminum-intensive products by 2028.
These include machinery, automotive components, and household appliances, which could significantly increase the impact on China’s indirect steel exports, particularly in high value-added segments.
Concerns over methodology and compliance
Industry participants raised concerns about high default emission values, which may inflate carbon costs for exporters.
Additional challenges include pre-verification requirements, emissions calculation methodologies, data security, and a lack of regulatory clarity.
Ongoing China-EU dialogue
Officials from China’s Ministry of Ecology and Environment noted that CBAM rules are still evolving and are influenced by both climate and trade considerations. The ministry confirmed ongoing technical discussions with EU counterparts to secure recognition of China’s domestic emission factors and to strengthen its carbon data infrastructure.
The discussions highlighted the need for closer cooperation between China and the EU on carbon market mechanisms and standardization. CISA stated that it will compile industry feedback and submit policy recommendations to relevant authorities to support Chinese companies in adapting to the CBAM framework.
