CBAM can help “level the playing field” for EU importers but will also distort competition and threaten the competitiveness of European steelmakers and manufacturers, experts said at Kallanish Europe Steel Markets 2025 in Amsterdam on Tuesday.
“European steel mills are already facing ETS [Emissions Trading System] costs; it’s as simple as that,” said Tata Steel Nederland head of trade affairs Jaap Jan Aardenburg.
He called it a “misconception” that all EU mills receive free emissions allowances under the ETS. “To create a level playing field, importers are not paying any carbon cost. And to equalise that so that we are all facing the same cost levels, we have the CBAM system in place,” he explained.
However, Aardenburg also acknowledged the complexity of CBAM’s implementation and the need for a workable solution that balances the interests of both steel producers and users. He warned the lack of clarity from the European Commission is already causing market distortions.
“CBAM is also a direct tax and it cannot be offset,” noted Alexander Julius, presidency member at EUROMETAL. He said steel-consuming manufacturers producing in Europe will also feel a CBAM impact which will “minimise” their competitiveness and, subsequently, exports of finished products will also decrease.
Julius also underlined the administrative burden placed on importers, questioning the feasibility of requesting emissions data from around 100,000 suppliers globally. He stressed the need for third-country exporters to register with the Commission to streamline compliance.
He also called on the Commission to accelerate guidance and technical clarification, so that the industry can accurately assess product costs under the new regime.
Panellists also noted how ongoing energy supply risks, particularly in France, are compounding cost pressures for European mills already contending with high regulatory burdens.
Suhita Poddar India
