Outokumpu, welcomes European Union’s CBAM regulation proposal

The company stated that the mechanism represents an important step for the European Union’s climate goals, while emphasizing that the scope and anti-avoidance measures need to be further developed.

Scheduled to come into effect in January 2026, the CBAM aims to subject imported carbon-intensive products to the same carbon costs as products produced within the EU. This regulation is intended to prevent carbon leakage and support the EU’s climate objectives.

Focus on Low-Carbon Production

Outokumpu recalled that it has been operating under the EU Emissions Trading System (ETS) for over twenty years and stated that it supports predictable and robust climate regulations. The company noted that it was the first in the steel sector to announce a climate target for 2016–2030, aiming to reduce emissions intensity by 42% in line with a 1.5 degree scenario. Outokumpu also highlighted that the carbon footprint of its stainless steel products is up to 75% lower than the industry average. In addition, the company operates the only chromium mine in the European Union.

Expansion of Scope and Reference Values on the Agenda

Outokumpu announced that it supports the European Commission’s proposals to expand the CBAM scope to finished products, introduce anti-avoidance measures, and establish a Temporary Decarbonization Fund as a solution for exports. The company noted that including selected steel-intensive finished products in the scope is a step in the right direction, while calling for further reductions in the reference values set for ferrochrome.

The company emphasized that the default emission values used under CBAM should be continuously monitored to ensure they reflect the actual emissions of imported products. Aligning reference values with the lowest carbon footprints achieved in the sector is expected to strengthen Europe’s climate leadership.

Key Requests Submitted to the Commission

Outokumpu has called on the European Commission to implement the following measures to establish an effective mechanism that limits carbon leakage:

• Recognition of the melting and casting principle in origin rules

• Expansion of the CBAM scope to include all steel-intensive subsectors by 2027 at the latest

• Extension of the mechanism to cover indirect emissions (Scope 2)

• Development of a long-term solution for exports through free customs allowances

Outokumpu’s Vice President of Sustainability, Heidi Peltonen, stated that it is critical for fair competition that CBAM is based on scientifically grounded values reflecting actual emissions and includes strong safeguards against circumvention.

The company noted that, when supported by robust security measures and pioneering markets for low-emission steel, CBAM can create a level playing field for European producers and accelerate industrial decarbonization.