The Carbon Border Adjustment Mechanism (CBAM) aims at preventing the risk of carbon leakage for certain sectors, starting with aluminium, cement, iron and steel, fertilisers, hydrogen and electricity.
The mechanism is designed to ensure that the price of imports reflects more accurately their carbon content.
With the EU’s high climate ambition and the degressive nature of the existing carbon leakage provisions, our industry needs strong protection measures to stay globally competitive, as any flaw in carbon leakage protection can pose an existential threat.
In its current form, CBAM is not yet fit for purpose for our sector, as it presents a number of significant shortcomings, notably regarding the treatment of downstream products, the lack of an adequate and predictable export solution, and the absence of robust anti-circumvention measures.
We’re asking policymakers to address the unsuitability of the current CBAM’s design, by:
