European Aluminium has welcomed the European Commission’s proposal to extend the Carbon Border Adjustment Mechanism (CBAM) to downstream products but highlighted that ‘serious flaws remain’.
The proposed scope expansion is a long-standing request from the aluminium industry and includes the inclusion of certain automotive components, wires and cables.
However, European Aluminium stressed that as CBAM applies to multiple sectors, it is essential for the mechanism to recognise that aluminium and steel face distinct value chains, trade patterns, and exposure to global competition. Therefore, solutions aimed at steel may not translate to aluminium.
Paul Voss, Director General of European Aluminium, said: “We appreciate the spirit behind this proposal, but spirit alone won’t be enough to give our industry the fair conditions it needs and deserves.
“All we can say at this stage is that it’s a meaningful first step. We will work tirelessly with the co-legislators and the Commission to make sure that by the time this draft is final, it does what it is supposed to do, not only in theory but in practice.”
European Aluminium also outlined the need for further refinement in regard to scrap and that post-consumer scrap should be included to maintain the competitiveness of EU aluminium recyclers.
CBAM is a policy introduced by the EU, which will require importers into the EU to pay a fee related to the embodied carbon within the products they are bringing into the union.
CBAM is set to be enforced from 1 January 2026.
