The European Commission (EC) has presented a new package of regulatory proposals aimed at addressing identified shortcomings in the design of the Carbon Border Adjustment Mechanism (CBAM). However, representatives of the steel industry have argued that the proposed measures do not yet go far enough to ensure that CBAM functions effectively.
Identification of gaps not sufficient
According to Kerstin Maria Rippel, CEO of the German Steel Federation (WV Stahl), the Commission has rightly identified key weaknesses in the current CBAM framework, but the remedies proposed remain insufficient. From the federation’s perspective, closing existing gaps decisively is a prerequisite for CBAM to deliver on its core objective.
Anti-circumvention measures seen as too weak
One of the main concerns raised by WV Stahl relates to the proposed approach to preventing circumvention. The federation described the measures as overly slow, vague and non-binding. Instead, WV Stahl has called for the mandatory application of country-specific standard emission values during a transitional period.
Export-related burden remains unresolved
A second key issue identified by the federation is the absence of a targeted and structural solution to relieve the burden on EU steel exports to third countries. In the federation’s view, this gap should be addressed through the continued free allocation for exported volumes.
Limited value-chain coverage creates risks
WV Stahl also criticized the proposals for failing to sufficiently cover the entire steel value chain. To prevent such outcomes, WV Stahl argued that CBAM would need to be comprehensively extended to steel-intensive downstream products, rather than applied in a fragmented manner.
Timing and urgency ahead of 2026
The federation further expressed concern over the timing of the proposed measures. With CBAM set to enter into force on January 1, 2026, WV Stahl noted that the need for corrective action has been evident for some time, yet effective solutions are still not in place. It therefore urged swift action to address the shortcomings and stressed that, until a fully functional CBAM framework is established, the German federal government should continue to advocate strongly for maintaining existing exemptions.
Against the backdrop of intensifying global competition, WV Stahl warned that partial or incomplete solutions carry significant risks. Without substantial improvements, there is a danger of large-scale shifts in emissions and value creation outside Europe. The federation therefore called on EU member states and the European Parliament to push for meaningful improvements to the CBAM framework.
