Multiple associations including Eurofer and EUROMETAL have called on EU policymakers to agree on the “broadest possible” extension of CBAM to downstream products, with the first trilogue negotiation on extending CBAM scheduled for 20 October.
The signatories, which also include the European Non-Integrated Wire Rod Processors Association (Eunipra), IndustriALL and Steel for Packaging Europe, have also called for authorities to put European industrial production, investments and quality jobs at the centre of the final agreement. They must recognise their “fundamental contribution to Europe’s economic security, prosperity and climate transition”, reads the joint statement seen by Kallanish.
“Products covered by CBAM will benefit from a more level playing field, supporting their continued production in Europe. Products left outside its scope will face growing risks of being replaced by imports or having their production relocated to third countries, where producers are not subject to equivalent carbon costs. This risk will become increasingly pronounced as free allowances under the EU Emissions Trading System (ETS) are progressively phased out,” it continues.
Sectors including energy, mobility, machinery, cookware, cutlery, catering equipment, packaging, construction, clean tech, defence, home appliances, hand tools and metal goods are increasingly exposed to competition from imports, the associations point out.
“For EUROMETAL, representing European steel, tube and metal distribution, the competitiveness of downstream manufacturing is closely linked to the strength of the wider European steel value chain. By co-signing the statement, EUROMETAL supports a coordinated approach to ensuring that products manufactured in Europe are not disadvantaged by the carbon costs imposed by EU legislation,” the distributors association notes.
Author: Adam Smith
