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Joint statement by energy intensive sectors on CBAM
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CEMBUREAU, EUROFER, EUROMETAUX, EUROPEAN ALUMINIUM and FERTILIZERS EUROPE represent the four
industrial sectors proposed by the Commission to be included in the scope of the EU Carbon Border Adjustment
Mechanism (CBAM)– cement, steel, aluminium and fertilisers.
Properly addressing the issue of carbon leakage is critical to avoid a situation where the EU’s climate ambitions
lead to an overall increase in global emissions. Such an outcome would undermine the entire “Fit for 55 Package”,
a package intended to deliver EU’s climate targets and promote green industrial growth. While the European
products are already cleaner than our major global competitors, we still face unilateral carbon costs. As long as
competitors in third countries are not subject to equivalent carbon costs and constraints, carbon leakage remains
a major threat for the EU Green Deal, even more with the very high carbon price expected by 2030.
Having thoroughly analysed the measure, we focus on 4 key issues without which CBAM will not be effective in
preventing carbon-intensive imports nor promote comparable carbon pricing in third countries.
- Maintain the current carbon leakage framework until 2030 to test the CBAM, smoothen the impact on
value chains and trade flows and ensure EU industry focuses resource on investment;
- Include a solution for European exports;
- Strengthen and extend anti-circumvention provisions;
- Improve design parameters (e.g., default values) and governance for a water-tight CBAM.
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Brussels, 07 May 2024 – The European Commission has today published two Regulations extending the anti-dumping and countervailing measures in force on imports of stainless steel cold-rolled flat products (SSCR) originating in Indonesia to imports of SSCR from Taiwan, Turkey and Vietnam. EUROFER welcomes the extension of the duties and the introduction of import requirements connected to strict monitoring of imports.
The outlook for the European steel market in 2024 continues to lose momentum amidst persisting challenging conditions. Downside factors such as worsening geopolitical tensions, coupled with growing economic uncertainty, energy prices, inflation, interest rates have further impacted demand prospects. According to EUROFER’s latest Economic and Steel Market Outlook, these challenges have exacerbated the negative effects on apparent steel consumption, resulting in a more severe downturn in 2023 than previously projected (-9%, instead of -6.3%) and weaker growth in 2024 (+3.2%, instead of +5.6%). Output in steel-using sectors, despite showing more resilience than expected in the past year (+1.1%), is now set to decline (-1%). Imports are once again on the rise (+11% in the last quarter of 2023), capturing a staggering 27% market share throughout 2023.
Second quarter 2024 report. Data up to, and including, fourth quarter 2023