As of 23 July 2025, the European Commission launched a customs monitoring system aimed at tracking the import and export of metal scrap to and from the European Union. The decision was made in response to growing concerns about the shortage of scrap, a key raw material for the steel and recycling industries. Additionally, the introduction of tariffs by the United States on steel and aluminum products (except scrap) may exacerbate this problem by increasing the incentive to export scrap abroad..
Purpose of monitoring
The purpose of introducing monitoring is:
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Collecting data: Obtaining detailed information on trade flows of metal scrap.
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Accessibility Assessment: Assessment of whether the availability of scrap in the EU is sufficient for the metals industry.
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Taking action: Taking any commercial actions necessary to ensure supply stability.
Cooperation with industry
To improve monitoring and obtain more detailed data, the Commission is working with industry stakeholders to assess whether and how the classification of scrap into key categories could be further developed.
Access to the data
Scrap import and export statistics are available and updated monthly, providing timely and transparent information on scrap metal trade flows.
Implications for emissions reporting under CBAM
The introduction of monitoring of imports and exports of metal scrap may have an impact on obligations under the CBAM (Carbon Border Adjustment Mechanism), especially in the context of metal imports to the European Union. Here are some potential areas that could be affected:
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Monitoring emissions embedded in scrap metal: If scrap metal is used to produce metals such as steel, aluminum, or copper, it may be associated with greenhouse gas emissions generated during its production. Under the CBAM, companies importing such products must report the emissions associated with the production of these goods in their country of origin.
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Increased requirements regarding the origin of goods: Under CBAM, companies must provide information on the origin of products, including data on production processes in the country of origin. New import monitoring regulations may make requirements regarding the origin of raw materials and documentation more stringent.
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Possible changes in the classification of goods: If changes are made to the classification of scrap metal as a result of monitoring, companies importing this material may need to adjust their CBAM reporting to reflect the changed classifications and emission requirements associated with its processing.
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Potential impact on CBAM rates and regulations: If scrap import monitoring affects the availability of this raw material, it could also affect overall metal production in the European Union, which in turn could result in changes to import needs and emissions levels reported under CBAM.
Summary
The introduction by the European Commission of a system for monitoring the import and export of metal scrap aims to ensure sufficient availability of this raw material for the metal industry in the European Union. These changes may also affect companies' obligations to report emissions under CBAM. Companies importing metals should be aware of these changes and adapt their reporting processes to ensure compliance with applicable regulations.
