Steel for Packaging Europe has joined forces with over 20 European industry associations to advocate for the extension of the Carbon Border Adjustment Mechanism (CBAM) to additional downstream sectors, including metal packaging.

The joint trade coalition argues that a broader CBAM scope is essential to maintain a level playing field between EU manufacturers and non-EU imports, safeguarding European manufacturing, skilled workforce jobs, and ongoing decarbonisation investments.

Without extending carbon border adjustments downstream, European manufacturers face the risk of carbon leakage—where production shifts abroad to regions with lower environmental standards, or imported downstream products gain an unfair price advantage over EU-made metal packaging.

In a direct joint statement, the coalition called on the European Parliament, European Council, and European Commission to take action across two core priorities:

• Agree on a broad downstream expansion: Build on the ambition shown by the European Parliament and Council to secure comprehensive protection for European industrial value chains against carbon leakage.
• Prioritise EU industrial capacity: Keep European manufacturing, investment, and high-quality jobs at the centre of final legislative agreements, recognising their core role in Europe’s economic security, prosperity, and green transition.

By incorporating finished and semi-finished steel products like packaging into the framework, industry leaders aim to ensure that carbon costs are applied fairly across the supply chain, preventing market distortion and keeping sustainable packaging production rooted in Europe.