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The EU plans to expand the scope of CBAM, extending the levy to around 180 downstream products beyond steel and aluminium. (Photo: iStock)
The European Commission on Wednesday unveiled proposals to significantly expand the scope of its carbon border adjustment mechanism (CBAM), extending the levy beyond core materials such as steel and aluminium to around 180 downstream products, as the bloc prepares to begin charging a carbon tax on imports from Jan 1, 2026.
The expanded scope would cover steel- and aluminium-intensive goods, including car components and household appliances such as washing machines, a move aimed at preventing high-emission products from entering the EU market without facing comparable carbon costs.
“We’re putting an end to unfair foreign competition,” said EU climate commissioner Wopke Hoekstra. “CBAM will strengthen Europe’s industrial position both at home and globally.”
EU expands CBAM to close loopholes
CBAM is designed to level the playing field between European manufacturers facing high carbon and energy prices and imported products from countries with weaker or no emissions pricing. Since October 2023, importers have been required to report the embedded emissions of covered goods during a transitional “learning phase”, though no payments have yet been imposed.
