Estamode, as a member of the European Steel Network (ESN), has joined the joint call launched by European associations and companies to request the extension of the Carbon Border Adjustment Mechanism (CBAM) to steel- and aluminum-intensive manufacturing industries.
This initiative aims to ensure clear and fair rules for the entire European industrial value chain, preventing competitive imbalances between European manufacturers and imported products from countries subject to lower environmental standards.
The need for balanced competition
The current CBAM mechanism represents a first step toward reducing the risk of carbon leakage in basic raw materials. However, various European industrial sectors believe that its current scope remains insufficient to adequately protect downstream industries—that is, those that transform steel and aluminum into final industrial products.
This situation creates a scenario of growing competitive inequality, as European manufacturers bear the costs of European climate and environmental regulations; furthermore, many imported products compete in the market without being subject to equivalent requirements, which increases the risk of industrial relocation and loss of production capacity in Europe.
Strengthening European industrial autonomy
At Estamode, we believe it is essential that the transition toward a more sustainable industry be accompanied by measures that ensure the competitiveness of Europe’s industrial base.
Electrification, energy efficiency, and advanced manufacturing require robust supply chains that are technologically prepared and capable of competing on a level playing field. In this context, having a coherent regulatory framework is essential to prevent distortions within the European value chain itself.
- Expanding the CBAM would:
- Promote more balanced competition.
- Encourage investment in low-carbon production.
- Reduce the risk of industrial relocation.
- Strengthen European industrial autonomy.
- Drive a sustainable transition grounded in the economic viability of industry.
Industry, sustainability, and a long-term vision
With nearly 80 years of industrial experience, Estamode has historically championed a vision rooted in innovation, flexibility, and the constant evolution of production processes.
The company operates in strategic sectors related to energy efficiency and electrification, developing industrial solutions that help optimize the performance of electric motors and industrial systems. This transition toward more sustainable models requires not only technological innovation but also a stable and fair regulatory environment for European companies.
For this reason, Estamode supports the request made to European institutions to expand the scope of the CBAM through a streamlined and effective procedure, avoiding regulatory gaps that could weaken European industrial competitiveness and jeopardize future investments.
A shared commitment to Europe’s industrial future
Advocating for a strong, innovative, and sustainable European industry requires common rules that drive industrial transformation without penalizing companies committed to decarbonization and responsible production.
Through its participation in ESN and its support for this sectoral initiative, Estamode reaffirms its commitment to a more efficient, competitive industry that is prepared to face the technological and energy challenges of the coming decades.
You can read the full ESN article here.