EU Parliament backs expansion of carbon border tax to finished steel and aluminium goods
The European Parliament voted overwhelmingly to widen the Carbon Border Adjustment Mechanism to include downstream steel and aluminium products, aiming to curb carbon leakage.
On September 15, the European Parliament adopted a negotiating position to broaden the EU's carbon border levy to downstream steel and aluminium products, passing the measure by 464 to 50 with 159 abstentions. While the original CBAM, effective from January 1, 2026, targeted basic materials like cement and raw steel, the expanded list adds roughly 457 product lines, including fasteners, springs, wire and various consumer items.
Officials argue the change will close loopholes that allow manufacturers to shift processing abroad and avoid carbon costs, preserving parity with EU producers under the Emissions Trading System. The Parliament also introduced stricter anti-circumvention thresholds and dismissed a Commission proposal for temporary relief during price spikes, instead directing future revenues to a Temporary Decarbonisation Fund for 2027-2029. The text now heads to formal trilogue talks with the Council, where final product coverage, timelines and enforcement details will be settled.
Why it matters
Extending the carbon border tax to finished goods tightens EU climate rules and could reshape global trade in steel and aluminium products.
In this story
