EU CBAM Expansion Adds 457 Downstream Products, Tightens Anti-Circumvention Rules
Importers of steel, aluminum, cement, fertilizer, hydrogen, electricity, and downstream goods into the EU must prepare for a broader carbon border levy starting January 2028.
The EU Carbon Border Adjustment Mechanism, in force since January 2026, is moving toward significant expansion. The Commission proposed in December 2025 to extend CBAM to downstream products, add anti-circumvention measures, and create a Temporary Decarbonisation Fund. The Council adopted its position in June, adding roughly 200 metal-intensive goods (forklifts, conveyor machinery, electric motor components) to the Commission's 180-product list. The European Parliament's ENVI committee voted in July to expand scope further to 457 products, including solar panels, heat pumps, and washing machine components, with a plenary vote expected in September. Trilogue negotiations will follow, with final adoption likely late 2026 or early 2027. The Q2 2026 CBAM certificate price was set at EUR 75.28. Importers should map supply chains now, secure third-party emissions verification, and prepare for expanded reporting obligations effective 2028.