[Regulatory Update] EU Proposes Amendment to Extend CBAM to Downstream Steel and Aluminium Products — Application Proposed From 2028
There is a possibility that the scope of regulation will expand from the raw materials currently covered by the CBAM to products closer to the processing and assembly stage. For machinery, components and processed products that use large quantities of steel and aluminium, this could affect carbon costs on exports to the EU and the management of origin and emissions data; for the CBAM, it is important to clearly distinguish between "products currently covered" and "the proposed future scope expansion".
Related Regulation Information
EU Carbon Border Adjustment Mechanism (CBAM)
The EU Carbon Border Adjustment Mechanism (CBAM) adjusts the carbon cost of imported carbon-intensive products based on the greenhouse gas (GHG) emissions generated during their production. It aims to narrow the carbon cost gap between EU and non-EU industries, preventing carbon leakage and encouraging decarbonization investment. During the transitional period (October 2023 to December 2025), the only obligation was to report data. Full application has applied since January 1, 2026: emissions embedded in goods imported from 2026 onward must be covered by surrendering CBAM certificates (certificate sales begin February 1, 2027, and the first annual declaration and surrender are due by September 30, 2027).
See this regulation's full analysis (timeline & business impact)💡 The overview and schedule for the regulation related to this article can also be found on the Regulatory Gateway Database page.