Brussels to expand CBAM to downstream steel, aluminum; overhaul power import rules

The European Commission plans to significantly expand the Carbon Border Adjustment Mechanism (CBAM) to cover around 180 downstream products, focusing on steel and aluminium intensive goods such as auto components and household appliances, starting Jan. 1, 2028. This extension could add 7,500 new importers and aims to curb carbon leakage while preserving EU industrial competitiveness. At the same time, the Commission proposes to simplify electricity import rules by replacing fossil-based default values with average grid emissions factors, better reflecting renewable generation trends. CBAM enters its definitive phase in 2026, imposing financial liabilities on importers and signaling stricter climate compliance for carbon intensive sectors amid global decarbonization pressures.
News Link
#EU #CBAM #DownstreamSteel #Aluminium #TradeCompliance #CarbonLeakage #GridEmissionsFactors #ElectricityImports #2028Start #DefinitivePhase2026