Recent media coverage across Europe highlights the increasing concern surrounding the implementation of CBAM and its unintended consequences for the foundry sector.
The current CBAM design is already creating significant market uncertainty. The procurement of key raw materials such as pig iron, ferroalloys and primary aluminium is increasingly being delayed, as final pricing will only become clear once CBAM is fully operational. This lack of clarity is effectively slowing down purchasing and investment decisions.
At the same time, European foundries are facing rising costs, while many downstream cast products remain outside the CBAM scope. This creates a clear competitive imbalance and significantly increases the risk of carbon leakage and production relocation.
These issues were at the centre of the recent visit of the EFF delegation (Chiara Danieli, Fabio Zanardi, Ainhoa Ondarzabal, Marc Dr. Mateika) to Brussels. During the meetings, the EFF emphasised the need for a CBAM framework that supports climate objectives without undermining industrial competitiveness.
The EFF calls on its members to actively engage with national policymakers and governments to ensure a balanced and workable CBAM implementation. If downstream cast products remain excluded from CBAM, essential raw materials must not be disproportionately penalised. Recent national initiatives – such as Italy’s proposal to remove pig iron from the CBAM scope – point in a constructive direction.
The coming months will be decisive. Coordinated action among national associations and stakeholders is essential to safeguard the competitiveness, sustainability and strategic autonomy of the European foundry supply chain.
The EFF remains fully committed to representing and defending the interests of the European foundry industry in Brussels and will continue to work closely with its members to advocate for the necessary policy adjustments.
