23 March 2026 – The EU Emissions Trading System (ETS) has been under increasing pressure from member states for several months. There are now even calls to abolish the system entirely – an outcome that would have direct implications for CBAM. Stainless steel prices in Europe are rising not only for flat products, but there also appears to be a shortage of scrap.
European Emissions Trading System Under Pressure
The European Emissions Trading System (ETS) has been under significant pressure from member states for several months. The main argument: sharply rising energy costs driven by the tightening supply of EU ETS certificates. This is hardly surprising, as the price of ETS certificates has tripled-from around €25 per ton of CO2 in 2019 to approximately €75 per ton in 2025.
Poland Calls for Abolition of the EU ETS
The ETS is scheduled for revision by July 2026, and the new design is likely to push CO2 prices even higher. At the end of February, several EU member states led by Italy called for the ETS review to be suspended.
Last week, further criticism came from the Polish government, following a request by President Karol Nawrocki to advocate for the abolition of the ETS in order to reduce costs and prevent industrial relocation out of the EU.
CBAM Directly Dependent on ETS Changes
Any modification – or even abolition – of the ETS would have immediate consequences for the CO2 tax CBAM, which came into force on 1 January 2026 and is structurally linked to the ETS.
A national exemption – for example, a suspension of ETS in Poland – would logically require CBAM to be suspended as well.
UK Steel Tariffs: Cost Pressure on Construction Sector
The construction industry in the United Kingdom has sharply criticized plans to introduce stricter steel tariffs of 50% combined with quota reductions of up to 60%.
The concerns are clear: rising costs for private housing, significantly higher costs for public infrastructure projects.
Industry representatives pointed to major challenges for the €115 billion HS2 railway project, where large volumes of steel have already been ordered and must be imported. Introducing higher tariffs at this stage would come at the worst possible time and could threaten the viability of many companies.
Cost Burden Extends Across Industries
Thorsten Gerber, CEO of the Gerber Group, commented: “What applies to the United Kingdom is no different for the European Union. The rushed and poorly thought-out introduction of new tariffs and lower quotas, combined with the CO₂ tax CBAM, leads to significant cost burdens and particularly harms the competitiveness of small and medium-sized enterprises.”
He added: “The double burden is not limited to the construction industry. It also affects automotive manufacturers, suppliers, and the entire downstream metal processing sector. Brussels and London must rethink their approach-otherwise, there is a risk of massive economic damage and the loss of millions of jobs.”
Further Rising Stainless Steel Prices in Europe
Reports are now emerging from multiple sources pointing to further price increases in European stainless steel. For example, prices for cold-rolled stainless steel sheet are expected to rise significantly in the coming months.
Sources cite several reasons: rising raw material costs for stainless steel, increasing energy prices and sharply rising prices for stainless steel scrap due to limited availability.
Commission Underestimated Price Impact
It is already becoming apparent that the European Commission significantly underestimated the expected price increases resulting from the introduction of new tariffs and quotas.
In October 2025, citing urgency, the Commission failed to provide a comprehensive impact assessment for its proposed successor regime to the EU steel safeguard measures, which are set to expire in June 2026.
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