As the EU’s Carbon Border Adjustment Mechanism (CBAM) moves closer to its January 1, 2026, start date, the European Association of Non-Integrated Metal Importers & Distributors (EURANIMI) has urged the European Commission to grant a six-month grace period for stainless steel imports. The organization argues that without this transitional relief, downstream European SMEs risk severe cost pressures and supply chain instability.
Consultations and uncertainty
On August 28, 2025, the Commission launched three consultations covering methodology for calculating embedded emissions, benchmarks and default values, and deduction rules for carbon prices in third countries.
According to EURANIMI, delays in finalizing these rules mean importers lack reliable data to calculate CBAM costs, negotiate prices or secure supply contracts for 2026. This uncertainty, the group warns, jeopardizes the stability of Europe’s stainless steel distribution network, particularly for SMEs.
Postponement vs exemption
While rumors circulate about delaying CBAM’s fiscal phase, EURANIMI points out that postponement would require changes to EU law, an unrealistic scenario. The commission already confirmed that the January 2026 date remains in force.
Instead, EURANIMI recommends temporary exemptions via implementing acts, which would provide immediate relief without undermining the legal timeline or political credibility, while giving importers and customs authorities time to adapt.
Benchmark problem for stainless steel
A critical issue lies in the benchmark methodology:
- EU stainless steel production relies entirely on scrap-based electric arc furnaces (EAFs), with scrap emissions counted as zero.
- Global production, however, often uses carbon-intensive methods such as blast furnaces or nickel pig iron smelting.
This creates a benchmark gap. EU values will fall well below global averages, meaning imported stainless steel faces disproportionately high CBAM costs. For SME distributors, EURANIMI warns, these costs could exceed profit margins, threatening business viability.
Ultimately, EURANIMI urges the commission to grant a formal six-month grace period, during which importers would not be required to surrender CBAM certificates for stainless steel. This period should begin once the definitive CBAM rules and benchmarks are published.
