Abstract: To understand the carbon reduction trends within the steel and metals industry supply chain and the feasible carbon reduction practices of small and medium-sized enterprises (SMEs) in this sector, this article summarizes the latest developments in the EU's Carbon Border Adjustment Mechanism, an overview of steel and metal product exports to the EU, and the trends of major steel manufacturers in promoting carbon reduction in their supply chains. Drawing on the carbon reduction experiences, spirit, and practices of small and medium-sized metal fastener manufacturers in countries such as the UK and Sweden, this article offers three key recommendations to serve as a reference for policy implementation and program improvement. 1. EU Carbon Border Adjustment Mechanism: After years of discussion, the EU finally reached agreement on the Carbon Border Adjustment Mechanism (CBAM) on May 10, 2023, completing the legislative process. According to information released by the European Commission, the CBAM will enter a transitional phase starting October 1, 2023, and will officially take effect in January 2026. The Commission also stated that after the CBAM enters its transitional phase, EU importers must complete the first wave of returns by January 31, 2024. After the CBAM enters the transition period, cement, steel, aluminum, fertilizers, electricity, hydrogen and other products will need to submit carbon content data when imported into the EU. However, during the transition period, importers only need to submit carbon content data for the above products and do not need to pay any additional fees. The EU hopes that CBAM stakeholders (importers)
