Europe's Top Steelmakers Urge Stronger EU Carbon Market and Border Levy for 27-Nation Bloc
Updated
Updated · Bloomberg · Jun 30
Europe's Top Steelmakers Urge Stronger EU Carbon Market and Border Levy for 27-Nation Bloc
1 articles · Updated · Bloomberg · Jun 30
Summary
Europe’s biggest steelmakers, including Salzgitter and SSAB, called on EU policymakers Tuesday not to weaken the Emissions Trading System and to strengthen the bloc’s carbon border levy.
The companies said a softer carbon market would erode investment certainty, penalize producers that decarbonize faster and slow the steel sector’s shift to clean energy.
The appeal targets the EU’s flagship carbon-pricing regime and its border measure, which are central to shielding European industry from higher-emission imports while pushing domestic producers to cut emissions.
Europe’s carbon border tax is already shifting global trade. Which major industries will its expansion disrupt next?
As courts declare climate action a legal duty, can EU politicians justify diluting the world's largest carbon market?
With some EU nations calling carbon rules an 'existential risk,' is the bloc’s flagship climate policy about to be weakened?
EU Steel in 2026: Navigating CBAM Costs, Trade Shifts, and the Race for Green Investment
Overview
In 2026, the European Union's steel industry is undergoing major changes as new climate and trade policies take effect. The Carbon Border Adjustment Mechanism (CBAM) has shifted from just reporting to creating real financial costs for importers, starting at 2.5% and set to rise to 100% by 2034. This marks the beginning of phasing out free carbon allowances under the EU Emissions Trading System, though large polluters will still benefit from these allowances for almost a decade. As a result, steel import costs are rising, supply is tightening, and higher prices are likely, reshaping the market and challenging both producers and importers.