WV Stahl criticises CBAM rules as insufficient, rejects partial solutions

Kerstin Maria Rippel, Managing Director of the German Steel Federation (WV Stahl), stressed that the federation supports CBAM as a key instrument for preventing carbon leakage and supporting decarbonisation. “However, one of the most important prerequisites for its effectiveness is the continuous closing of existing loopholes. The current CBAM package fails to achieve this. While the European Commission has correctly identified the right problems, the proposed solutions are far from sufficient,” she added.

According to the federation, the package contains shortcomings in three key areas. First, the proposed approach to preventing circumvention is described as lengthy, uncertain, and non-binding. Instead, WV Stahl argues that mandatory country-specific default values should be introduced for the transition period. Second, a targeted solution to alleviate the burden on exports to third countries is still missing; this gap should be addressed through free allocation for exported volumes. Third, the federation points out that the value chain is insufficiently represented within the CBAM framework. It argues that steel-intensive downstream products must be included, warning that a piecemeal approach is inadequate and risks undermining steel-intensive industries.

Rippel recalled that CBAM is set to enter into force on 1 January 2026, noting that the need for action has long been known. However, she criticised the fact that workable solutions cannot be implemented until the new mechanism formally takes effect. “This situation must be corrected as soon as possible. Until a fully functional CBAM is in place, our federal government must continue to strongly advocate for the preservation of the relevant exemptions,” she said.

Emphasising that insufficient regulation is no longer an option amid intensifying global competition, Rippel warned: “Global competition is becoming increasingly fierce. Under the current circumstances, we can no longer tolerate half-baked solutions. Without adequate improvements, we face a serious risk of carbon leakage and a shift in value creation. We therefore call on the Member States and the European Parliament to improve the proposals.”