EU Parliament rejects emergency brake that would pause carbon border tax

During a plenary session on 15 September, the European Parliament rejected the emergency brake provision that would have permitted the European Commission to temporarily lift the carbon border adjustment mechanism for selected goods. The decision, taken in Strasbourg, removes a key obstacle and moves the CBAM forward to negotiations with member states on the definitive law. The border tax, already in force since January, targets imports of steel, aluminium, cement, fertilisers, electricity and hydrogen, ensuring that overseas manufacturers face the same carbon price as EU plants.

Importers will begin paying the levy in 2027. The Commission had earlier suggested expanding the scope to 180 steel- and aluminium-based products, while the Parliament’s environment committee seeks to cover roughly 450 items.