<div id="readability-page-1"><div><div><div>Key points:<ul><li>New CBAM measures won't stop all carbon leakage, steel body says</li><li>Norsk Hydro says not enough aluminium scrap is covered</li><li>More changes needed to close loopholes, European Aluminium says</li></ul></div> Proposed changes to the European Union's carbon border adjustment mechanism are a step in the right direction for Europe's steel and aluminium sectors but not a complete solution, industry representatives said.The European Commission on Wednesday announced proposals to expand the scope of the CBAM - which will impose a carbon tax on Europe's imports of steel, aluminium and a handful of other commodities from January 1 - to cover some downstream products with a high content of those metals and some scrap.In doing so, it took account of warnings from metal industry players in Europe about &#34;carbon leakage&#34; - or the risk that industries concerned about a loss of competitiveness would move operations outside the region to avoid the cost of its climate policies.European steel association Eurofer said the proposals identified loopholes, but failed to deliver &#34;a comprehensive and durable response to carbon and jobs leakage,&#34; describing the number of downstream products included as &#34;very limited&#34;. Norwegian aluminium producer Norsk Hydro was at the forefront of the lobbying for the expansion of CBAM to cover the downstream and scrap, saying that 35% of EU aluminium recycling capacity could close if remelted aluminium scrap entered the bloc free from a carbon levy. It said on Wednesday the inclusion of pre-consumer scrap was a &#34;big step forward&#34;. &#34;However, post-consumer scrap must also be added to the scope,&#34; a company spokesman said. &#34;Otherwise, half of the scrap loophole will remain open.&#34;Pre-consumer scrap refers to scrap metal generated during the manufacturing process before a product reaches the consumer, whereas post-consumer scrap refers to end-of-life metal such as aluminium beverage cans.Industry association European Aluminium on Thursday concurred that CBAM needed more work.&#34;The direction is right, but further adjustments are needed to close remaining loopholes and ensure the framework reflects the specific realities of the aluminium sector,&#34; said Paul Voss, director general of the Brussels-based group. &#34;We remain fully committed to working constructively with the co-legislators to deliver a CBAM that supports climate ambition while preserving Europe's industrial competitiveness.&#34;</div></div></div>

The European Commission's proposed changes to the carbon border adjustment mechanism (CBAM) are seen as a step forward but insufficient by the steel and aluminium industries. Eurofer and Norsk Hydro highlight that the measures do not fully address carbon leakage and the inclusion of downstream products and scrap is limited. European Aluminium calls for further adjustments to close loopholes and better reflect the sector's realities.

EU carbon tax changes for metals are not enough, industry says