Publications » Position papers » Carbon Border Adjustment - EUROFER contribution to the public consultation
Carbon Border Adjustment - EUROFER contribution to the public consultation
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Deep emission reductions are technically achievable in the EU steel industry only with the right framework in place, including support for investment in innovation and roll-out, the
creation of markets for green materials, the availability of the competitive low carbon energy sources, an international level playing field, and the application of EU trade defence
instruments against trade distortions.
Higher climate ambition, which will translate into higher carbon costs and emission reduction efforts, requires strengthened carbon leakage measures, in particular for sectors at highest risk due to high trade exposure and energy intensity such as steel.
Steel products sold on the EU market, whether produced in the EU or imported from third countries, need to have similar CO2 cost constraints. EU steel exports need also to have CO2 cost level playing field on global steel markets.
A well designed and effective CBA ensures that all emissions come with a cost, regardless of their country of origin, and provides strengthened carbon leakage protection only if it
complements and addresses the shortcomings of the existing measures, which shall be based on 100% of the benchmarks, without any reduction.
A CBA with full auctioning would have a disruptive impact on the EU steel industry and the related value chains, as it would expose EU steel producers and downstream sectors to the full carbon costs, undermining the financial ability to invest in low carbon technologies and jeopardising the competitiveness of EU exports.
In order to prevent carbon leakage, the CBA should be introduced in a way that the importer has on one side a comparable carbon cost level to the EU industry and on the other side a sufficiently high incentive to decarbonise, while addressing the risks of cost absorption and source shifting. The design of the CBA should also take into account the fact that EU producers are subject to the carbon costs for their entire production, while importers would be subject only for the quantities exported to the EU. Due to that, a CBA set at a too low level would not provide the sufficient carbon cost constraint to avoid carbon leakage.
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Brussels, 29 July 2025 – The proposal for a ‘highly effective’ new trade measure to counter global overcapacity and preserve the European steel industry’s capacities, published yesterday by France on behalf of a group of 11 Member States, is a timely initiative. The non-paper sets a clear course towards a comprehensive steel trade measure to replace the current safeguard regime at a critical moment, as the negative impacts of global overcapacity on the European steel industry continue to grow, says the European Steel Association (EUROFER).
Brussels, 28 July 2025 – The deal on tariffs struck by the EU with the U.S. limits the damage in the current circumstances, but the impact on European steel remains dramatic as long as 50% tariffs are still applied. A potential joint action EU-U.S. to address global overcapacity and a possible return to a tariff-rate quota system for EU exports to the U.S., as hinted at by Commission President Ursula von der Leyen, are still vague and lack the necessary details to the bring the economic certainty needed by EU steel producers, says the European Steel Association.
Brussels, 11 July 2025 – The delay and ongoing uncertainty about a deal on tariffs between the EU and the U.S. further worsens the crisis for the European steel industry. U.S. steel tariffs at 50% are adding fuel to an already explosive situation, putting the sector at risk of losing all its exports to the U.S. and facing a surge of deflected trade flows redirected from the U.S. to the EU market. The lack of bold and timely implementation of the Steel and Metals Action Plan is further accelerating the sector’s deterioration, says the European Steel Association.
The European Steel Association (EUROFER)
172 Avenue de Cortenbergh
1000 Brussels
Belgium
Email: mail@eurofer.eu
Phone: +32 (0) 2 738 79 20
