The writer is executive chairman, ArcelorMittal
Seven years ago, I advocated for the introduction of a carbon border tax — to ensure a level playing field between European industrial producers bearing decarbonisation costs, and cheaper imports that did not. You might assume I am therefore satisfied that a carbon border adjustment mechanism was subsequently adopted by the EU, and is now in its testing phase, with full implementation starting in January 2026.
Unfortunately, I am here not to raise the cry of victory, but to sound a voice of alarm. As it stands, the CBAM is inadequately designed and, unless significantly strengthened, a critical mechanism to enable Europe to achieve its stated goal of “decarbonising and industrialising at the same time” will fail.