CBAM & Safeguard Measures

CBAM stands for Carbon Border Adjustment Mechanism. It is an EU regulation that places a carbon cost on imported goods such as steel, aluminum, electricity, fertilizer and cement. The goal of this mechanism is to ensure that products produced outside the EU and imported into the EU reflect the same carbon costs as products produced within the EU. This way ‘carbon leakage’ is prevented and a low-emission production is promoted.

Carbon leakage occurs when companies decide to move their production to countries with less strict climate rules, or when lower-emission EU products are replaced by more carbon-intensive imports.  By doing so, companies aim to avoid carbon costs. This can lead to higher global emissions, even if overall EU emissions decrease. CBAM aims to prevent this by applying the same carbon cost to imported goods as to products made within the EU.

CBAM will fully apply from 1 January 2026 following the current transition phase (2023-2025). Importers must be officially registered as CBAM declarants by then and purchase CO₂ certificates that correspond to the emissions of their imported products.  

It is still unclear what the exact costs for imported CO₂ emissions will be. The European Commission will announce the official value of the certificates once the system is fully implemented. However, it is expected that it will depend on the EU Emissions Trading System (ETS)  and become clear in 2027. The exact levels vary widely and differ per product group but expectations in the market circulate between €50-150 per ton. These additional carbon costs are likely to be reflected in the overall steel market and increase the prices. Although the certificates will only be purchased in 2027, the expected related cost impact will already apply to imports from January 2026 onward. 

Van Leeuwen is actively preparing for CBAM. Our teams ensure accurate CO₂ data collection and transparent reporting across the supply chain. Besides, through initiatives such as Van Leeuwen Impact and the use of HVO100 biofuel for transport, we continuously reduce our footprint while supporting customers in meeting their sustainability goals. 

Any further information can be found on the official EU and Dutch government websites:  

• Carbon Border Adjustment Mechanism - Taxation and Customs Union 

• Carbon Border Adjustment Mechanism (CBAM) | Douane 

• Wat is CBAM? | Nederlandse Emissieautoriteit 

The safeguard measures limit the amount of certain steel products that can be imported into the EU within a defined period. The European Commission has made a proposal on the new safeguard measures that limit annual steel import volumes. A significant reduction of 1.8 million tons is implemented, which is 57% less imports. Also, for HRC a reduction of 4.3 million tons is foreseen. Lastly, the proposal states an increase on the over-quota tariff from 25% to 50%.

The safeguard measures are designed to protect the European steel industry from the high pressure of import peaks that have disrupted the market in recent years. They provide the industry with a temporary breathing space to adjust to changing trade conditions and help maintain stability across the European market.  

The current safeguard measures expire in July 2026. Yet, there is still uncertainty about the date the new measures will take effect. Although it is not expected, there is a possibility that the new measures take effect earlier, from 1 January 2026 onwards. However this is seen as unrealistic, and 1 April or 1 July are expected to be more viable. 

As the European Commission has not yet been able to provide the necessary details, the exact impact remains unknown. However, it is certain that the safeguard measures will put upward pressure on prices and this pressure is expected to increase further.  Particularly for products that are strongly reliant on imports where quotas are filled quickly. This effect may intensify if the new measures take effect earlier than expected, for example on 1 January 2026.  
In addition, product availability may also be temporarily affected. Importers are holding back on ordering while waiting for clarity and upcoming trade conditions, leading to an increase of short-term demand for European mills. Scaling up production takes time, which may result in potential delays.

Van Leeuwen closely follows all developments related to the EU safeguard measures. Thanks to our global network and experience in the international steel market, Van Leeuwen can continue to offer reliable supply.

Any further information and official updates can be found on the website of the European Commission:  

• Safeguards - Trade and Economic Security - European Commission  

• WTO | Trade topics - Safeguards Gateway