Following two meetings last week in Brussels with DG TAXUD and DG TRADE, EUROMETAL has issued a formal letter today to Commissioner Maroš Šefčovič, to raise our growing concerns over the implementation timeline and market implications of the Carbon Border Adjustment Mechanism (CBAM).
As discussed during our exchanges with Commission officials, the full legal framework for CBAM’s definitive phase — due to start in January 2026 — is still incomplete.
Critical elements such as:
• Benchmark and default values,
• Methodology for recognising carbon prices paid in third countries,
• Adjustment mechanisms for free ETS allocations,
…remain under discussion, with publication likely only in early 2026.
This is too late for our sector. Many of our members are currently negotiating steel contracts for next year without the clarity or legal certainty needed to plan and price appropriately. The risk of speculative behaviour, contractual disputes, and market distortion is real — especially for SMEs, who may lack the resources to navigate complex and delayed regulations.
In light of this, EUROMETAL has addressed a letter to Commissioner Šefčovič urging the European Commission to:
• Publish provisional values and benchmarks without further delay;
• Clarify the intended scope of downstream product coverage under CBAM;
• Accelerate communication on the export adjustment mechanism;
• Explore a pre-payment or provisional charge at the border to stabilise market expectations;
• Issue an EU-wide statement to reduce uncertainty and give direction before final legal texts are adopted.
While CBAM remains under the lead of DG TAXUD, we believe it has broader implications for trade, competition, and the integrity of the Single Market — and must be addressed with a coordinated approach across Commission services.
