Reform CBAM to secure Europe’s competitiveness and avoid de-industrialisation

The combination of CBAM (Carbon Border Adjustment Mechanism) and the phase-out of free allocation under the EU’s Emissions Trading System (ETS), risks inflicting lasting damage on Europe’s industrial competitiveness.

As major users of CBAM goods (such as steel and aluminium), the industries represented by Orgalim will see their manufacturing costs soar, fundamentally undermining their ability to compete both on the EU market and on foreign export markets. In addition, CBAM compliance presents a challenging cost burden for downstream manufacturers as a result of the late publication of technical CBAM legislation for the definitive period, particularly concerning the verification of actual emission.

The December 2025 CBAM legislative package falls short of providing appropriate solutions to secure the competitiveness of downstream industries, despite its intent to mitigate the negative impact of CBAM on downstream users of CBAM goods.

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