Outokumpu welcomes the proposal for regulation on the Carbon Border Adjustment Mechanism – further development required on the scope and anticircumvention

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Key reason for Outokumpu's low carbon footprint is the high content of recycled material in its products. Recycled steel in Tornio scrapyard. 

Outokumpu welcomes the proposal for regulation on the Carbon Border Adjustment Mechanism – further development required on the scope and anticircumvention    

Outokumpu, the global leader in sustainable stainless steel and the owner of the only chrome mine in the EU area, welcomes the European Commission’s proposal for regulation for the Carbon Border Adjustment Mechanism (CBAM), a crucial step towards Europe’s climate ambition. Starting January 2026, CBAM aims to ensure that imported carbon-intensive goods face the same carbon costs as those produced within the EU, helping to prevent carbon leakage and support the EU’s climate objectives.

Outokumpu advocates for robust and predictable climate regulation and has been under the EU Emissions Trading System (ETS) for over twenty years. Outokumpu was the first in the steel industry to commit to an ambitious climate target aligned with 1.5 degrees to reduce its emission intensity by 42% by 2030 from 2016 Already today, Outokumpu’s stainless steel has up to 75% lower carbon footprint compared to the industry average. Outokumpu also operates the only chromium mine in the European Union.

Outokumpu supports the Commission’s proposal to expand the CBAM scope to downstream goods and the defined anticircumvention measures, as well as establishing the Temporary Decarbonization Fund as a solution for exports. The expansion to the selected steel-intensive downstream goods is a step towards the right direction. Outokumpu also calls on the Commission to continue further lowering the ferro-chromium benchmark values to reflect the achievements of Europe’s most sustainable producers and to continuously monitor that the default values set reflect the real emissions of the imported materials. By aligning benchmarks with the lowest carbon footprints attained in the industry, CBAM can further incentivize climate leadership in Europe.

Outokumpu further urges the European Commission to consider the following key aspects to ensure implementation of a mechanism that limits carbon leakage:

• Introducing Melted and Poured principle for rules of origin to effectively mitigate circumvention
• Expanding CBAM to cover all the steel-intensive downstream goods latest by 2027 to avoid the risk of relocation of the sectors
• Expanding CBAM to cover indirect emissions (Scope 2)
• Developing a long-term solution for the exports through free allowances

“Outokumpu strongly welcomes the European Commission’s decisive action in advancing European climate targets through CBAM. To secure a level playing field and accelerate global decarbonization, CBAM must be set on rigorous, science-based values that reflect actual emissions and reward the most sustainable technologies. Comprehensive coverage of all emissions and robust safeguards against circumvention are essential to uphold fair competition and deliver real climate impact. Outokumpu is committed to collaborating with the Commission to ensure CBAM becomes the standard for industrial climate policy—driving clean innovation, supporting Europe’s climate targets, and setting a benchmark for sustainable industries worldwide,” states Heidi Peltonen, VP Sustainability.

When paired with robust safeguards and lead markets for low-emission steel, CBAM can create a level playing field for European producers. Together, these elements will drive industrial decarbonization, strengthen the competitiveness of the European steel industry, and set a global benchmark for sustainable industrial policy.

More information:

Heidi Peltonen, VP Sustainability, tel. +358 50 458 4234

Karoliina Rasi, Head of Public Affairs, Europe, tel. +32 476 349 263

Outokumpu Corporation