The Latin American Steel Association (ALACERO) is expressing its concern about the European Union's (EU) measure Carbon Border Adjustment Mechanism (CBAM), which refers to a tariff that will be applied to products that are intensive in carbon emissions such as steel and cement.

According to CBAM, when countries outside the EU export high-carbon products they will have to pay a tax that will be phased in gradually from 2026 to 2034.

ALACERO anticipated that the training to fit CBAM could result in additional administrative processes and economic costs, which would unequally affect developing regions. In addition, the association highlighted that Latin American countries do not have subsidies to finance the transition or adoption of decarbonization technology.