The European Steel Association (EUROFER) has called for targeted reforms to the Carbon Border Adjustment Mechanism (CBAM) as the system approaches a key milestone, with the first carbon certificate prices scheduled to be published on April 7, 2026.
On this date, the European Commission will announce the carbon price that importers must pay under CBAM, based on EU ETS prices for the first quarter of 2026, as SteelOrbis reported previously. This will provide the first clear indication of the financial impact on importers, particularly in the steel sector, following the start of financial obligations on January 1, 2026.
Concerns over design gaps and competitiveness
EUROFER reiterated its support for CBAM as a central tool to prevent carbon leakage and support decarbonization. However, the association warned that the current design still contains significant shortcomings.
According to Adolfo Aiello, deputy director general of EUROFER, the mechanism risks shifting emissions outside Europe rather than reducing them if not properly calibrated. He noted that record global steel overcapacity and rising energy prices are intensifying competitive pressures on European producers.
Since its launch in January 2023, CBAM has primarily functioned as a reporting mechanism, with full implementation still evolving. EUROFER strongly supports extending CBAM’s scope to downstream products, arguing that this is essential to prevent carbon leakage across the value chain.
Key reform proposals outlined
To address current gaps, EUROFER has proposed a series of improvements aimed at strengthening the mechanism’s effectiveness. These include the introduction of mandatory default values to prevent resource shuffling, the expansion of the Temporary Decarbonisation Fund, and the development of an export solution to safeguard EU producers in global markets. Additional recommendations focus on improving traceability requirements for steel and aligning CBAM rules on international carbon credits with the EU Emissions Trading System.
EUROFER also called for the removal of exemptions such as the inward processing procedure and rejected proposals for fast-track exemptions for certain products or countries.
