Finland-based stainless steel producer Outokumpu has welcomed the European Commission’s proposed regulation on the Carbon Border Adjustment Mechanism (CBAM), describing it as an important milestone in advancing Europe’s climate ambitions.
From January 2026, CBAM is intended to ensure that imported carbon-intensive goods face carbon costs equivalent to those borne by EU producers, thereby preventing carbon leakage.
Long-standing commitment to climate regulation
Outokumpu underlined that it has been subject to the EU Emissions Trading System (ETS) for more than two decades. The company was the first steel producer to commit to a climate target aligned with the 1.5°C pathway, aiming to reduce its emissions intensity by 42 percent by 2030 compared with 2016 levels. As a result of sustained investment and technological progress, Outokumpu stated that its stainless steel already carries up to a 75 percent lower carbon footprint than the industry average.
Support for key elements of Commission’s proposal
Outokumpu expressed support for several core components of the Commission’s CBAM proposal. These include the extension of CBAM to selected downstream goods, the introduction of defined anti-circumvention measures, and the establishment of a Temporary Decarbonisation Fund aimed at addressing export-related challenges.
While the company views the inclusion of steel-intensive downstream products as a step in the right direction, it emphasized that further development is needed to ensure the mechanism fully reflects best-in-class performance across the sector.
In particular, Outokumpu called for continued reductions in ferro-chromium benchmark values to better mirror the achievements of Europe’s most sustainable producers. It also stressed the importance of close monitoring of default values to ensure they accurately reflect the real emissions embedded in imported materials.
Additional measures urged to limit carbon leakage
To ensure CBAM effectively limits carbon leakage, Outokumpu has urged the European Commission to address several additional issues. These include introducing the “melted and poured” principle for determining rules of origin as a way to tackle circumvention, expanding CBAM to cover all steel-intensive downstream goods by 2027 to avoid relocation risks, extending the mechanism to include indirect emissions (Scope 2), and developing a durable long-term export solution through the continued use of free allowances.
Outokumpu concluded that, when combined with strong anti-circumvention safeguards and the development of lead markets for low-emission steel, CBAM has the potential to create a truly level playing field for European producers.