The Commission proposed measures to close loopholes to prevent circumvention and strengthen the efficacy of EU’s Carbon Border Adjustment Mechanism’s (CBAM), in response to feedback received from industry. Starting January 1, 2026, CBAM’s scope will expand to include specific steel and aluminium-intensive downstream products, while closing loopholes to prevent circumvention. Answering the call of the sector, a temporary support scheme is being introduced to protect EU producers vulnerable to carbon leakage, rewarding cleaner companies globally and fostering a fair, competitive environment. Today’s proposals also take into account concerns raised by trusted international partners, which will benefit from some simplifications and flexibilities. It introduces the concept of equivalence in carbon tax and price deduction, and includes a new clause allowing for negotiated trade facilitation measures, such as mutual recognition of trustworthy accreditation bodies, and new facilities on equivalence of carbon price deduction. This will further strengthen CBAM’s role in promoting decarbonisation beyond EU borders, facilitated by outreach and technical aid, which is confirmed in the CBAM Review report, unveiled today.
More information is available in our press material online:
- Press release: Commission strengthens the Carbon Border Adjustment Mechanism ( here)
- Questions and answers (here)
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