European Parliament Backs Expansion of CBAM to Downstream Steel and Aluminium Products

Summary

The European Parliament adopted its negotiating position on 15 September 2026, supporting expansion of CBAM to a wider range of downstream products containing steel or aluminium. [useforesight.io]
Parliament’s proposed scope includes finished and semi-finished goods such as fasteners, wire, springs and household articles, together with stronger anti-circumvention provisions. [useforesight.io], [europarl.europa.eu]
The extension is not yet law. Parliament must negotiate the final text with the Council, and the existing CBAM product scope remains applicable until an amending regulation is enacted. [useforesight.io], [eur-lex.europa.eu]

Extended article

The European Parliament has adopted its negotiating position on the proposed expansion of the Carbon Border Adjustment Mechanism to downstream products.

Parliament supported extending CBAM beyond the basic materials currently covered to a broader range of goods containing substantial quantities of steel or aluminium. Its position was approved by 464 votes to 50, with 159 abstentions. [useforesight.io]

The proposed additions include finished products such as fasteners, wire, springs and household articles. The purpose of the extension is to address carbon-leakage risks further down the value chain, where products manufactured outside the EU may contain steel or aluminium already covered when imported in basic-material form. [eur-lex.europa.eu], [eprs.europ….europa.eu]

Parliament also supports stronger anti-circumvention measures. Its position lowers the threshold at which minor product modifications may be considered circumvention and targets arrangements specifically established to avoid CBAM obligations.

An exemption was added for electricity flows from non-EU countries used by grid operators to maintain network stability. Parliament rejected the Commission’s proposed safeguard allowing goods to be temporarily removed from CBAM during significant price shocks.

Parliament separately supported a temporary decarbonisation fund for EU producers exposed to carbon leakage in export markets. Under Parliament’s position, support would be available from 2027 through 2029, and specified fertiliser producers and downstream users would also qualify.

These are negotiating positions rather than final obligations. The Commission initially proposed approximately 180 additional downstream products, the Council position covers approximately 200 and Parliament’s position reportedly covers 457 product lines. The final scope will be determined through negotiations between Parliament and the Council. [useforesight.io], [europarl.europa.eu]

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