Dutch steel importers warn CBAM could hit manufacturing industry

The introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) risks causing serious disruption to the Dutch manufacturing sector in the short term, according to the Koninklijke Staalfederatie (Royal Dutch Steel Federation), which represents steel importers and distributors in the Netherlands.

In a statement, the association said unclear rules, the absence of a workable verification process and the mandatory use of elevated default emissions values are driving sharp cost increases for steel imports. These additional costs, it said, will inevitably be passed on to customers across the manufacturing value chain.

CBAM is intended to put a carbon price on imported products so that European producers, already subject to strict climate regulation, are not placed at a disadvantage. However, the Staalfederatie argues that, for the steel market, the mechanism currently creates uncertainty and higher prices rather than a level playing field.

Although imports made in 2026 will only be financially settled in 2027, importers already face significant uncertainty over their eventual CBAM liabilities. With no approved verification procedure yet in place, companies are unable to use actual emissions data from producers and are instead forced to rely on default values. According to the association, this uncertainty weakens the competitive position of Dutch manufacturers, particularly as no comparable levy yet applies to many downstream products.

The Staalfederatie said the complexity of the system is already affecting commercial reality. Existing contracts are, in some cases, no longer economically viable under the current CBAM assumptions, while calculation tools and default values do not reflect real-world emissions or costs. This, it warned, undermines price predictability and puts pressure on the availability of steel and metal products for industry.

A central concern is the use of default emissions values, which the association says can be several times higher than actual emissions reported by producers under existing sustainability frameworks. Even where more accurate data exists, it cannot yet be used due to the lack of a formal verification pathway. As a result, importers are required to base their CBAM calculations on inflated figures, leading to what the Staalfederatie describes as artificial cost increases unrelated to real emissions performance.

The association also points out that many of the affected steel products are not available in sufficient volumes from European producers. This raises the risk that demand will shift towards finished or semi-finished products from outside the EU that are not covered by CBAM, distorting competition and weakening the position of both the European steel value chain and downstream manufacturing.

The Koninklijke Staalfederatie is therefore calling for the CBAM system to be simplified and for the verification process to be introduced more quickly, ideally by July 1, 2026. It says this would allow companies to work with realistic emissions data, reduce uncertainty and provide greater clarity on future pricing.

In parallel, the association is carrying out its own impact analysis based on data and case studies from member companies. These assessments highlight which product groups are most exposed to cost increases due to high default values or the lack of European alternatives. The Staalfederatie says it is using these findings to develop concrete proposals for policymakers in the Netherlands and at EU level.

Source: Staalfederatie, Photo: Fotolia