Riegel/Brussels, 7 July 2025 – As the expiry of the EU’s Safeguard Measure on certain steel products approaches in June 2026, and the full implementation of the Carbon Border Adjustment Mechanism (CBAM) begins in January of the same year, the Gerber Group urges the European Commission to prevent a looming policy collision that could severely harm small and medium-sized enterprises (SMEs). And presents a model for a Steel Carbon Shield, which aims in particular to strengthen the competitiveness of SMEs in the EU.
Gerber Group Proposes EU Steel Carbon Shield: A Fair and Legal Path Beyond the Safeguard
“Applying both the Safeguard and CBAM in parallel would create a double regulatory and financial burden,” warns Thorsten Gerber, CEO of the Gerber Group, a Germany-based international metals trader. “It would distort competition, undermine SMEs, and risk violating WTO obligations.”
To address this challenge, the Gerber Group proposes the EU Steel Carbon Shield — a pragmatic and WTO-compliant mechanism that balances climate policy with industrial fairness. The solution introduces a steel carbon budget for SMEs, providing them with a CBAM- and tariff-exempt allowance for a limited volume of imported (stainless) steel. Beyond that threshold, standard CBAM rules would apply.
The EU Steel Carbon Shield offers:
- Legal certainty: Fully compatible with WTO law and EU treaties
- Administrative simplicity: Integrated via existing CBAM and customs systems
- Political alignment: Reinforces the SME Relief Package and Art. 173 TFEU
- Economic fairness: Levels the playing field for SMEs vis-à-vis large importers
- Climate integrity: Major emitters remain fully subject to CBAM
The proposal has already been formally presented to both the European Parliament and the European Commission. Representatives of the Gerber Group will be in Strasbourg this week for initial meetings and discussions with EU decision-makers.
Media reporting on this: Kallanish, Eurometal
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