Outokumpu Supports Stronger Carbon Border Measures to Safeguard Europe’s Low Carbon Steel Industry

Outokumpu Supports Stronger Carbon Border Measures to Safeguard Europe’s Low Carbon Steel Industry

(IN BRIEF) Outokumpu has welcomed the European Commission’s proposal for the Carbon Border Adjustment Mechanism, describing it as a vital policy tool for preventing carbon leakage and supporting Europe’s climate goals. With CBAM set to begin in 2026, the company supports expanding the mechanism to downstream steel-intensive products, strengthening anticircumvention measures, and creating solutions for exports through a Temporary Decarbonization Fund. Drawing on its long participation in the EU ETS and its leadership in low-carbon stainless steel production, Outokumpu also calls for more ambitious benchmark adjustments, inclusion of indirect emissions, and broader coverage by 2027. The company believes that a robust and science-based CBAM framework can reinforce Europe’s industrial competitiveness while driving meaningful decarbonization.

(PRESS RELEASE) HELSINKI, 18-Dec-2025 — /EuropaWire/ — Outokumpu has expressed strong support for the European Commission’s proposed regulation on the Carbon Border Adjustment Mechanism, viewing it as a pivotal policy instrument in advancing the European Union’s climate agenda. As a global producer of sustainable stainless steel and the only operator of a chromium mine within the EU, the company considers CBAM an essential tool to ensure fair competition between European manufacturers and producers in regions with less stringent carbon regulations.

Scheduled to take effect in January 2026, CBAM is designed to apply carbon costs to imported goods with high emissions intensity, aligning them with the costs borne by EU-based producers under climate legislation. By addressing the risk of carbon leakage, the mechanism aims to safeguard Europe’s industrial base while supporting decarbonization objectives. Outokumpu, which has participated in the EU Emissions Trading System for more than two decades, has long advocated for stable, predictable climate policy frameworks that reward early movers and low-emission technologies.

The company highlights its long-standing commitment to climate leadership, having been the first steel producer to adopt an emissions-reduction target aligned with the 1.5-degree pathway. By 2030, Outokumpu aims to cut its emissions intensity by 42 percent compared to 2016 levels. Today, its stainless steel products already demonstrate up to a 75 percent lower carbon footprint than the global industry average, largely due to the high share of recycled material used in production and the integration of its chromium supply chain within Europe.

Outokumpu supports the Commission’s intention to broaden the scope of CBAM to include downstream, steel-intensive products, as well as the introduction of defined measures to prevent circumvention. The proposed Temporary Decarbonization Fund is also seen as a constructive approach to addressing the challenges associated with exports. At the same time, the company encourages further refinement of the framework, including continued reductions to ferrochromium benchmark values so they better reflect the performance of Europe’s most sustainable producers, and closer oversight to ensure default values accurately represent the emissions of imported materials.

To strengthen the effectiveness of CBAM and minimize the risk of carbon leakage, Outokumpu calls on the Commission to incorporate additional elements into the final design of the mechanism. These include adopting the melted-and-poured principle for determining origin, extending CBAM coverage to all steel-intensive downstream goods no later than 2027, incorporating indirect emissions under Scope 2, and developing a durable solution for exports through the continued use of free allowances.

According to Heidi Peltonen, Vice President of Sustainability at Outokumpu, the Commission’s proposal marks an important step toward aligning climate ambition with industrial competitiveness. She emphasizes that CBAM must be grounded in rigorous, science-based benchmarks that reflect real-world emissions and reward the most advanced low-carbon technologies. Comprehensive emissions coverage and strong anticircumvention safeguards, she notes, are critical for ensuring fair competition and delivering meaningful climate outcomes.

When combined with effective safeguards and the development of lead markets for low-emission steel, CBAM has the potential to accelerate industrial decarbonization, enhance the resilience of Europe’s steel sector, and establish a global reference point 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

SOURCE: Outokumpu Corporation