Eurometal calls for rapid establishment of benchmarks for CBAM

Eurometal, the association representing European distributors of steel, pipes and metal products, is seriously concerned about the lack of clarity on the average carbon price in the EU ETS in 2026 and the fact that the benchmarks for calculating the CBA have not yet been defined.

According to Eurometal President Alexander Julius, the combination of these factors could create a significant and unpredictable cost burden for the European manufacturing industry.

The Association called for the establishment of moderate and realistic benchmarks as soon as possible. They should provide greater predictability and reduce the risk of creating an excessive burden on the steel value chain in the early stages of CBAM implementation.

The proposal was made during the 3rd meeting of the Informal Expert Group on the Cross-Border Carbon Adjustment Mechanism. The group was convened by the European Commission’s Directorate-General for Taxation and Customs Union (TAXUD). It plays an advisory role in the development and implementation of the CBAM.

As a reminder, the European Commission is working on defining standard prices for carbon credits for countries, sectors and commodities as part of the CBAM simplification package. The idea is to analyze those carbon pricing systems that are transparent and well known, and then, based on this, determine a certain standard carbon price for those goods imported into the EU. This is the way that will take into account the countries’ decarbonization efforts.

As GMK Center reported earlier, the introduction of a carbon border adjustment mechanism in the EU could have irreversible consequences for the economy, exports and employment in Ukraine. Such a warning was expressed by Lyudmyla Tsyhanok, founder of ESG Liga, President of the Association of Environmental Professionals (PAEW) and CEO of the Office of Sustainable Solutions. Therefore, the government should immediately appeal to the European Union to postpone the CBAM for Ukrainian producers.

Earlier, Ukrcement, the association of cement producers in Ukraine, as well as the National Association of Mining Industry of Ukraine and leading subsoil use market participants, made similar calls to the government.

According to GMK Center’s updated estimates, Ukraine could lose $7.2 billion in GDP by 2030 as a result of the mechanism.