Despite earlier promises, the European Commission’s proposed reform of the ETS carbon market did not include provisions to support EU exporters of goods covered by the CBAM tax on carbon-intensive goods.
EU steel lobby Eurofer said this long-awaited proposal “is still missing”.
While CBAM shields EU producers of goods such as steel and fertilisers from imports, industry argues that it leaves exporters exposed.
For Fertilizers Europe, the reform’s proposal to delay, from 2034 to 2038, a phase-out of free ETS allowances for CBAM-covered sectors is not enough.
The lobby group Cement Europe reiterated its support for the phase-out — provided CBAM protections are “watertight … both for imports and exports”.
The Business for CBAM Coalition of firms investing in industrial decarbonisation said the proposal punishes companies that invested in greener technologies while failing to protect exporters.
The NGO Bellona said the Commission’s move “risks squandering the EU’s credibility with investors and trading partners alike”.
French Renew MEP Pascal Canfin, one of Parliament’s CBAM leads, criticised the delayed phase-out of free allowances as an “incoherent signal” as the EU considers extending the levy to new sectors.
