Posted on 04 Feb 2026

Italy is calling for a faster extension to the scope of the Carbon Border Adjustment Mechanism (CBAM) to downstream products, calling the current proposed start date of 1 January 2028 too distant, Minister of Enterprises and Made in Italy Adolfo Urso says.

The comments were made at a recent meeting in Rome with representatives from other ministries and industry associations, including Federacciai, Italy’s steelmakers’ association.

Urso noted that the scope of finished products covered by an expanded CBAM must be carefully defined to protect industrial value chains and avoid market distortions. He added that any potential inclusion of ferrous scrap should be considered. Clarity is also needed on how the temporary decarbonisation fund – designed to support exports – will operate, as well as any CBAM anti-circumvention mechanisms.

Regarding the review of the EU Emissions Trading System (ETS), Urso said it should take into account the first evidence emerging from CBAM and address existing market distortions, starting with excessive price volatility linked to speculation.

He added that for some energy-intensive sectors, climate neutrality remains technically and economically unachievable at present, effectively turning the ETS into an additional form of taxation. In this context, maintaining free allowances beyond 2034 would represent a balanced choice to recognise the efforts of companies already engaged in decarbonisation.

2026 must be the year of reform and a turning point. “The Commission now needs to take bold and pragmatic decisions to defend and revive European production in the most exposed sectors, such as automotive and energy-intensive industries,” Urso states in a ministry note obtained by

Kallanish

.

Source:Kallanish

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