Brussels, 3 April 2026 – The European Steel Association (EUROFER) has set out proposals to improve the EU’s Carbon Border Adjustment Mechanism (CBAM), just as the system enters a decisive new phase with the publication of the first carbon certificate prices expected on 7 April 2026.

On this date, the European Commission will publish the carbon price importers must pay under CBAM, based on the EU carbon market for the first quarter of 2026. Financial obligations began on 1 January 2026 and this will be the first clear indication of the cost for importers - including steel - into the EU. While EUROFER fully supports CBAM as a key instrument to prevent carbon leakage and support the decarbonisation of the steel industry, the association stresses that further improvements are needed to ensure it delivers a fair and effective level playing field.

Adolfo Aiello, Deputy Director General of EUROFER, said: “If properly designed, CBAM can support both climate action and European industries. But right now, key gaps remain which risk shifting emissions to outside Europe rather than reducing them. At a time when global steel overcapacity is at record highs and energy prices are rising again due to geopolitical tensions, the EU must urgently ensure that CBAM is fit for purpose delivering a real level playing field for the steel industry and bringing down global emissions.”

In place since January 2023, CBAM has so far operated as a reporting system. The European Commission has proposed changes to its scope, including a potential extension to downstream products, while negotiations between the European Parliament and the Council are ongoing to determine its final design.

While CBAM is designed to prevent carbon leakage, EUROFER warns that its current design leaves key gaps that could undermine both climate ambition and industrial competitiveness. To ensure the mechanism works, EUROFER proposes the following:

1. Widen the downstream scope extension 
2. Prevent resource shuffling with mandatory default values for goods and countries at high risk 
3. Make the Temporary Decarbonisation Fund broader & faster
4. Develop a permanent export solution as quickly as possible 
5. Do not include pre-consumer steel scrap as a CBAM precursor, but impact assess the issue with more data 
6. Strengthen traceability for steel 
7. Reject fast procedures for product and country exemptions 
8. Align CBAM rules on international credits to the EU ETS 
9. Remove the exemption for the inward processing procedure 

Notes for editors

Contact
David French, Spokesperson and Head of Communications, +32 2 738 79 35, (d.french@eurofer.eu)

About the European Steel Association (EUROFER)
EUROFER AISBL is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union. EUROFER members are steel companies and national steel federations throughout the EU. The major steel companies and national steel federation of Turkey, Ukraine and the United Kingdom are associate members.

The European Steel Association is recorded in the EU transparency register: 93038071152-83.

About the European steel industry
The European steel industry is a world leader in innovation and environmental sustainability. It has a turnover of around €215 billion and directly employs around 298,000 highly-skilled people, producing on average 146 million tonnes of steel per year. More than 500 steel production sites across 22 EU Member States provide direct and indirect employment to millions more European citizens. Closely integrated with Europe’s manufacturing and construction industries, steel is the backbone for development, growth and employment in Europe.

Steel is the most versatile industrial material in the world. The thousands of different grades and types of steel developed by the industry make the modern world possible. Steel is 100% recyclable and therefore is a fundamental part of the circular economy. As a basic engineering material, steel is also an essential factor in the development and deployment of innovative, CO2-mitigating technologies, improving resource efficiency and fostering sustainable development in Europe.