The Spanish steelmakers association, UNESID, is alarmed by the absence of a competent authority to manage the Carbon Border Adjustment Mechanism. They have called on minister Teresa Ribera to urgently establish such an authority, given CBAM's launch on October 1.
The Spanish steelmakers association UNESID has raised the alarm about the lack of a competent authority to oversee the recently launched Carbon Border Adjustment Mechanism (CBAM). The CBAM was introduced on October 1 to tax certain imports like iron and steel based on their carbon footprint. However, Spain has yet to set up a managing authority, causing concerns for UNESID.
Teresa Ribera, the minister for the Ecological Transition and Demographic Challenge, has been urged by UNESID to expedite the establishment of a managing authority. The call comes as the implementation of the CBAM is already in effect, and the reporting period will last until January 31, 2024.
Andrés Barceló, the general director of UNESID, voiced his concern about the current uncertainty surrounding the mechanism. "Although the European Commission has issued some guidelines, they are insufficient. We urgently need a contact in the general state administration to address our queries," Barceló stated.
The lack of clarity and absence of a managing authority pose challenges for Spanish steelmakers. The situation could potentially affect the competitiveness of the industry, given that taxes will apply to certain goods, including iron and steel, starting from January 1, 2026.
UNESID's plea for quick action underlines the gravity of the situation. With the CBAM already in operation, the clock is ticking for the establishment of an authority that can provide needed guidance and manage the mechanism effectively.
The reporting period for the CBAM, which started on October 1, serves as a preparatory phase for the full implementation of the mechanism. However, the absence of an authority complicates matters for industries required to comply with the new regulations.
To that end, UNESID is not just speaking for the steel industry but echoing the concerns of multiple sectors affected by the CBAM. The immediate establishment of a competent authority could alleviate uncertainties and help industries prepare for the full impact of the mechanism.
The absence of an authority to manage the Carbon Border Adjustment Mechanism is a pressing issue that needs immediate resolution. UNESID's call to action highlights the urgency and the potential impact on various industries, not just steelmakers. The establishment of a competent authority would be a crucial step in navigating the challenges posed by the CBAM effectively.