The European Parliament has today adopted its position on the extension of the Carbon Border Adjustment Mechanism (CBAM) to downstream steel and aluminium products, marking an important step in recognising that carbon leakage has increasingly shifted beyond primary materials and into manufactured goods.
For several years, EUROMETAL has highlighted the growing imbalance affecting European manufacturers, service centres, distributors and traders, as imported steel- and aluminium-containing products have continued to enter the EU market without being subject to equivalent carbon-related obligations.
The Parliament’s position acknowledges this challenge by supporting a broader application of CBAM to downstream products. While this represents significant progress, EUROMETAL believes that further work is needed to ensure the mechanism effectively delivers a genuine level playing field across the entire European manufacturing value chain.
In its reaction published today, EUROMETAL identifies four key priorities for the next stages of the legislative process:
- Extend CBAM coverage to all relevant steel-intensive and aluminium-intensive products.
- Accelerate implementation to avoid further carbon leakage and industrial relocation.
- Develop an effective solution for European exporters competing in global markets.
- Address the cumulative impact of regulatory costs and trade measures affecting manufacturing competitiveness.
EUROMETAL welcomes the European Parliament’s recognition that carbon leakage increasingly occurs through downstream manufacturing rather than primary materials alone. However, the Federation considers that the current proposal still leaves important product categories outside the scope of CBAM, creating opportunities for circumvention and continuing to expose European manufacturers to unfair competition.
As discussions continue between the European institutions, EUROMETAL will remain actively engaged in advocating for policies that protect the competitiveness of Europe’s manufacturing value chain while supporting the European Union’s climate objectives.
The Federation reiterates that effective climate policy and industrial policy must go hand in hand. Ensuring fair competition across the entire value chain is essential to maintaining manufacturing, investment, innovation and quality jobs in Europe.
Read EUROMETAL’s full reaction to the European Parliament’s position on downstream CBAM here.
