EUROPEAN COMMISSION 
 
 
Cabinet of Executive Vice-President Valdis Dombrovskis 
 
        Brussels, 
04/02/2022 
 
Meeting with Arcelor Mittal 
04-02-2022 
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MINUTES 
 
Meeting participants: 
EC: Gints Freimanis (Cabinet Dombrovskis), 
 (DG Taxud), 
 
(DG Trade) 
Arcelor Mittal: 
 
 
Topic: Carbon border adjustment mechanism (CBAM) 
 
Minutes of the meeting: 
Constructive discussion confirming Arcelor Mittal position over CBAM and its impact on the 
share of EU steel in global markets in view of increasing carbon and energy prices.  Arcelor 
Mittal reiterated their view on the need to maintain free allocation of allowances, the impact 
of CBAM on exports’ competitiveness and the risks of resource shuffling.  
Arcelor Mittal stressed its commitment to decarbonisation and emphasized the ambitious 
targets set by the company and EU steel industry, in this context. However, it also emphasized 
that the rapid phase-out of free allocation will place increased cost pressure to the industry, 
which in the face of rising carbon and energy prices will be forced to an uncompetitive 
position in global markets. At the same time, they consider that CBAM will not be sufficient 
to replace free allocation. On the basis of a detailed statistical analysis of costs structures of 
the industry at global level, Arcelor Mittal suggested that import pressure will increase as the 
EU market will become attractive to new imports with structurally lower CO2 
emissions,  exports from EU producers will become uncompetitive in costs relative to non EU 
producers and that EU steel consumers for applications with high steel intensity will also risk 
to become uncompetitive in their end products due to higher steel costs. Against this 
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background Arcelor Mittal called for the continuation of free allocation in parallel to CBAM 
so long as two do not exceed 100% and for a solution on the competitiveness of EU steel in 
global markets.  
COM appreciated the pressures placed on EU steel industry in view of increasing carbon and 
energy prices. It clarified that the proposal is now in the hands of the legislators. It 
emphasized that CBAM is not the culprit to the phase-out of free allocation, as the increase of 
EU’s climate ambition would, in anyway involve the tightening of the EU ETS. COM also 
pointed to the fact that the CBAM demonstrates that the EU is willing to be pro-active in 
global efforts to fight climate change and pointed to additional efforts in other fora such as the 
OECD. Finally, COM emphasized that there are mitigating measures for exporters such as 
investments under the Innovation fund.   
 
 
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