What changed

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

P10_TA(2026)0276

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956Carbon asBorder regardsAdjustment theMechanism: extension of its scope to downstream goods and anti-circumvention measures

(COM(2025)0989 – C100352/2025 – 2025/0419(COD))

Committee on the Environment, Climate and Food Safety

PE786.835

Amendments adopted by the European Parliament on 15 September 2026 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards the extension of its scope to downstream goods and anti-circumvention measures (COM(2025)0989 – C10-0352/2025 – 2025/0419(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2025)0989),

– having regard to Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100352/2025),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the budgetary assessment by the Committee on Budgets,

– having regard to the opinion of the European Economic and Social Committee of 19 March 2026,

– having regard to the opinion of the Committee of the Regions of [...],

– having regard to Rule 60 of its Rules of Procedure,

– having regard to the opinions of the Committee on International Trade and the Committee on Industry, Research and Energy

– having regard to the report of the Committee on the Environment, Climate and Food Safety (A10-0201/2026),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Recital 1: (1) Regulation (EU) 2023/956 of the European Parliament and of the Council3 was initially designed with a limited scope, covering those goods that are most exposed to the risk of carbon leakage and that are most carbon intensive. The scope of that Regulation should be gradually extended to cover products further down the value chain of the goods listed in Annex I to that Regulation, based on quantitative and transparent methodologies.

Recital 9 b (new): (9b) In order to ensure that the declaration of actual emissions for electricity imports under the CBAM reflects market realities, the conditions for using actual values should be further clarified. Where relevant data is available and based on verifiable information, those conditions should, where appropriate, be aligned with the market time unit used in electricity markets, take into account the consumption mix in a manner that reflects actual electricity flows, and, where feasible, consider whether and which technologies are increasing production for export to the Union.

✦ Extends the temporary derogation for outermost regions to all outermost regions, not only those more than 3 000 nautical miles from the European continent, and requires the transition plan to include verifiable intermediate and product-specific milestones.

Recital 9 c (new): (9c) Regulation (EU) 2023/956 should take due account of the special characteristics and constraints of the outermost regions of the Union, as referred to in Article 349 TFEU, linked to their remoteness, insularity, small size, topography and climate. In order to avoid disproportionate administrative and economic burdens, while preserving the integrity and environmental objectives of the CBAM, the Commission should be empowered to grant, on a duly reasoned request from the Member State concerned, a temporary and product-specific temporary derogation of the obligations laid down in that Regulation for operators established in outermost regions located more than 3 000 nautical miles from the European continent,regions, having limited access to Union supply chains and which remain heavily dependent on imports from third countries for the supply of certain products covered by that Regulation. Any temporary derogation should be subject to a prior assessment by the Commission on a case-by-case basis, taking into account criteria such as the distance from the European continent, the specific conditions of supply, market size, logistical constraints, the risk of circumvention and the need to ensure a level playing field. Any temporary derogation should also be conditional upon the submission by the Member State concerned of a binding transition plan setting out a clear pathway towards progressive compliance with the objectives of that Regulation. That plan should establish a phased timetable…timetable, verifiable intermediate and product-specific milestones, as well …

Recital 10 a (new): (10a) During the transitional phase of the CBAM implementation, the Commission assessed the potential inclusion of additional sectors and scrap materials. To ensure a proportionate, effective and practicable application of the CBAM, a gradual and phased approach should be pursued, starting with products with simpler value chains or established EU ETS benchmarks, and progressively expanding the scope as technical feasibility, data availability, and monitoring capacity allow.

Recital 14 a (new): (14a) With a view to ensuring that operators in third countries are not subject to the application of default values for longer than necessary where abusive practices have ceased, the continued use of default values should be subject to regular assessment. In particular, the Commission should regularly assess, at least on an annual basis, whether the conditions justifying the application of default values continue to be met, by monitoring the carbon cost exposure applicable in the country to which those default values apply.

✦ Adds a recital stating that a single default value should apply to all unwrought aluminium, based on the average CO2 intensity of primary aluminium production in the country of smelting.

Recital 14 b (new): (14b) Because of the unique carbon cost burden on scrap prices that will affect only European transactions and European producers, a single default value should be applied to all unwrought aluminium uniformly, regardless of whether it contains pre- or post-consumer scrap. This default value should be based on the average CO₂ intensity of primary aluminium production in the country of smelting, without differentiation between primary and secondary production routes. The proposed single default value system would simplify the CBAM, facilitate its extension to downstream products, and prevent competitive distortions between European producers and importers.

Recital 18 a (new): (18a) The monitoring, verification and reporting obligations provided for in Regulation (EU) 2023/956 should be implemented in a proportionate manner and taking into account the size, resources and administrative capacity of undertakings, in particular small and medium-sized enterprises, while avoiding unnecessary administrative burdens.

Recital 19: (19) Emissions from the production of pre-consumer aluminium scrap in the Union are subject to a carbon price since, under the EU ETS, emissions are measured at installation level. Since pre-consumer aluminium scrap under Regulation (EU) 2023/956 are assigned zero-emissions, and since a comparable circumvention risk may arise for imported goods using post-consumer aluminium scrap where its declared use artificially lowers embedded emissions or avoids an equivalent carbon price, imported goods using such scrap as input material are subject to a lower carbon price compared to goods produced in the Union, thus weakening the effectiveness of the CBAM in addressing the risk of carbon leakage of goods listed in Annex I.

✦ Wording Replaces 'cla…' with 'classificatio…' and removes the word 'aluminium' before 'scrap' in the sentence on pre-consumer steel scrap.

Recital 20: (20) With a view to strengthening the effectiveness of the CBAM to address the risk of carbon leakage of goods, emissions of pre-consumer aluminium scrap should be taken into account for the calculation of embedded emissions of goods. Concerning pre-consumer steel scrap, emissions should be reported but not be taken into account for the calculation of embedded emissions of goods. For the purpose of Regulation (EU) 2023/956, ‘scrap’ is defined in accordance with Council Regulation (EU) No 333/20111a, and is not considered waste under Directive 2008/98/EC of the European Parliament and of the Council1b. Since pre-consumer scrap is a co-product generated unintentionally in the production process of metal goods and immediately reusable in a production process, it is not considered at risk of carbon leakage in its own right. Therefore, the emissions of pre-consumer aluminium scrap and pre-consumer steel aluminium scrap should only be taken into account when used as a precursor for goods listed in Annex I of this Regulation. The Commission should ensure that the monitoring, reporting and verification of emissions embedded in pre-consumer scrap used as input material (precursor) is not circumvented, including by misreporting pre-consumer scrap as post-consumer scrap to lower the determination of embedded emissions. Where materials are claimed to constitute post-consumer scrap, the importer should be required to provide sufficient, verifiable evidence demonstrating the origin and cla…classificatio…

Recital 20 a (new): (20a) Cooperation and active engagement with third countries are essential to support the effective implementation of Regulation (EU) 2023/956, promote industrial decarbonisation, and foster the interoperability of carbon pricing systems and monitoring, reporting, and verification (MRV) practices. The Commission should report regularly on progress made and aim at building common principles, improving transparency, and achieving the mutual recognition of comparable systems. Furthermore, cooperation measures should support partner countries, in particular developing countries and Least Developed Countries (LDCs), in complying with CBAM requirements. In designing these measures, the Commission should take into account local capacity constraints.

Regulation (EU) 2023/956

✦ Changes the outermost-region derogation from a Commission authorisation on request to a four-year derogation upon notification by the member state, with a complete dossier and verifiable elements, and makes the transition plan optional.

Article 1 – paragraph 1 – point 1 – point e a (new), Article 2 – paragraph 12 a (new): (ea) the following paragraph 12a is added: / '12a. A Member State may request the Commission to authorisenotify a temporary derogation offrom the application of this Regulation for goods listed in Annex I imported into such outermost regions referred to in Article 349 TFEU and destined exclusively for local consumption or local processing. / The temporary derogation referred to in the first paragraph (the ‘request’) shall be granted onlyfor wherea period of four years upon the notification by the Member State demonstrates,concerned on the basis of a complete dossier containing verifiable evidence,elements that:and demonstrating that : / (a) application of this Regulation would entail disproportionate socio-economic impacts in the outermost region concerned; / (b) no viable alternative supply from within the customs territory of the Union or domestic sources is available in the short term; and / (c) neither the goods nor the products concerned can subsequently be introduced into the customs territory of the Union. / TheIf relevant the request shallmay be accompanied by a binding transition plan setting out a phased timetable for progressively reducing dependence on the imports concerned, with measurable indicators, in line with the environmental objectives of this Regulation. / The Member State shall notify the Commission and the other Member States of the request sufficiently in advance specifying the products, territories, justification, and measures aimed at preserving the integrity of the CBAM and preventing any form of circumvention. / The Commission shall adopt a decision authorising or refusing the request within two mo……

Regulation (EU) 2023/956

✦ Adds a paragraph making CBAM obligations applicable to goods imported into an outermost region under a temporary derogation and later introduced into the rest of the customs territory without substantial processing, with a declaration and record-keeping duty.

Article 1 – paragraph 1 – point 1 – point e b (new), Article 2 – paragraph 12 b (new): (eb) The following paragraph is added: ‘12b. Where goods listed in Annex I have been imported into an outermost region within the meaning of Article 349 TFEU under a temporary derogation from the obligations laid down in this Regulation, and are subsequently introduced into the customs territory of the Union outside the outermost regions without having undergone, in an outermost region, processing which is substantial within the meaning of Article 60(2) of Regulation (EU) No 952/2013, the obligations laid down in this Regulation shall become applicable to those goods. / Any legal person intending to introduce such goods into the customs territory of the Union outside the outermost regions shall, submit a declaration to that effect to the competent authority of the Member State to which the outermost region concerned belongs, and shall keep records enabling the goods concerned to be traced. That legal person shall be treated as the importer of those goods for the purposes of this Regulation.’

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 1 a (new), Article 2a – paragraph 1 a (new): (1a) in Article 2a, the following paragraph is inserted: / '1a. For importers for distance sales, the single mass-based threshold laid down in point A of Annex VII shall apply to the aggregated net mass of all goods covered by Annex I imported during the relevant calendar year, irrespective of the number of individual consignments imported by the final consumers.';

Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in the definition of 'importer' in Article 3, point 15.

Article 1 – paragraph 1 – point 2 c (new), Article 3 – point 15: (2c) in Article 3, point 15 is replaced by the following: / "(15)‘(15) ‘importer’ means / a) the person lodging a customs declaration for release for free circulation of goods or a bill of discharge in accordance with Article 175(5) of Delegated Regulation (EU) 2015/2446 in its own name and on its own behalf or, / b) where the customs declaration is lodged by an indirect customs representative in accordance with Article 18 of Regulation (EU) No 952/2013, the person on whose behalf such a declaration is lodged, or / c) in the case of distance sales, the importer for distance sales as defined in Article 5(14) of Regulation (EU) …/… [reference to be added after adoption cf. COM(2023) 258 final]; / "final];’ ;

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Regulation (EU) 2023/956

Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in Article 5, paragraph 1.

Article 1 – paragraph 1 – point 3 b (new), Article 5 – paragraph 1: (3b) in Article 5, paragraph 1 is replaced by the following: / "1.‘1. Any importer established in a Member State and any importer for distance sales shall, prior to importing goods into the customs territory of the Union, apply for the status of authorised CBAM declarant (“application for an authorisation”). / "authorisation”).’ ;

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Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in Article 5, paragraph 2.

Article 1 – paragraph 1 – point 3 c (new), Article 5 – paragraph 2: (3c) in Article 5, paragraph 2 is replaced by the following: / "2.‘2. Where an importer is not established in a Member State, and is not an importer for distance sales, the indirect customs representative shall obtain the status of authorised CBAM declarant, irrespective of whether the importer is exempted from the obligations under this Regulation pursuant to Article 2a. / "2a.’ ;

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Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in Article 6, paragraph 2, point (da).

Article 1 – paragraph 1 – point 5 – point a – point 1 a (new), Article 6 – paragraph 2 – point d a (new): (1a) the following point is added: / '(da)‘(da) where the good is produced using post-consumer aluminium scrap, copies of verification reports, confirming that on-site inspections have concluded that the material used is post-consumer scrap;'scrap;’ ;

Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in Article 6, paragraph 2, point (db).

Article 1 – paragraph 1 – point 5 – point a – point 1 b (new), Article 6 – paragraph 2 – point d b (new): (1b) the following point is added: / '(db)‘(db) where the good contains steel or aluminium scrap, whether from pre- or post-consumer scrap, details of the quantity of scrap contained in the good and whether this consists of pre-consumer scrap, post-consumer scrap, or a mix of both.’;

Regulation (EU) 2023/956

Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in Article 8.

Article 1 – paragraph 1 – point 6 a (new), Article 8: (6a) Article 8 is replaced by the following: / "Where‘Where it adopts the implementing acts referred to in the first subparagraph, the Commission shall seek equivalence and coherence with the procedures set out in Implementing Regulation (EU) 2018/2067. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2) of this Regulation. / Where on-site verification in a candidate country facing an exceptional and immediate security situation in line with Article 30(7) is not feasible due to safety or access constraints, the Commission shall allow for the application of default values without mark-up. / Moreover, the Commission shall provide technical assistance to competent authorities and operators in those countries, with a view to strengthening domestic emissions monitoring and verification systems and facilitating compliance with the monitoring, reporting and verification requirements of this Regulation. Such assistance may include capacity-building programmes, methodological guidance, digital tools and structured technical cooperation, including through the Technical Assistance and Information Exchange (TAIEX) instrument. / " ;instrument.’;

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Regulation (EU) 2023/956

Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in Article 12.

Article 1 – paragraph 1 – point 8 d (new), Article 12: (8d) Article 12 is replaced by the following: / "Commission‘Commission / The Commission shall support the consistent implementation and enforcement of this Regulation by facilitating training, technical assistance and capacity-building for competent authorities and customs authorities, including on the use of the CBAM registry, verified information, risk analysis and anti-circumvention measures. That support may be provided through Technical Support Instrument and flagship projects. / " ;projects.’;

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Regulation (EU) 2023/956

Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in the new Article 25b.

Article 1 – paragraph 1 – point 15 a (new), Article 25b (new): (15a) the following Article is inserted: / 'Article‘Article 25b / Monitoring and enforcement of the single mass-based threshold for importers for distance sales / 1. The Commission shall monitor the imports of CBAM goods facilitated by importers for distance sales, or their appointed representatives, with a view to detecting patterns indicative of artificial splitting of transactions or other circumvention strategies aimed at falling below the de minimis threshold established in Article 2a. / 2. For the purposes of paragraph 1, competent authorities shall require importers for distance sales, or their appointed representatives, to report to the competent authority of the Member State where they are registered, the aggregate value and volume of CBAM goods facilitated through distance sales transactions, irrespective of whether individual transactions fall below the threshold referred to in Article 2a. / 3. Where the competent authority has reasonable grounds to suspect that an importer for distance sales is artificially splitting transactions or otherwise structuring its operations so as to circumvent the obligations under this Regulation, it shall notify the Commission and the customs authorities of the relevant Member States without delay. / 4. Where circumvention is established, the importer for distance sales, or its appointed representative, shall be deemed to have assumed the status of authorised CBAM declarant with retroactive effect from the beginning of the calendar year in w…

Regulation (EU) 2023/956

✦ Formal Corrects quotation marks and punctuation in Article 27, paragraph 2, point (a).

Article 1 – paragraph 1 – point 15 b (new), Article 27 – paragraph 2 – point a: (15b) In Article 27(2), point a is replaced by the following: / "slightly‘(a) slightly modifying, including by slightly processing, the goods concerned to make those goods fall under CN codes which are not listed in Annex I, except where the modification alters their essential characteristics; / "characteristics;’

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Regulation (EU) 2023/956

Regulation (EU) 2023/956

✦ Formal Removes deleted text from Article 27a.

Article 1 – paragraph 1 – point 17, Article 27 a (new): deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Regulation (EU) 2023/956

Regulation (EU) 2023/956

✦ Formal Removes deleted text from Article 28a.

Article 1 – paragraph 1 – point 19, Article 28a (new): deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Regulation (EU) 2023/956

Regulation (EU) 2023/956

✦ Adds chemicals and petrochemicals to the scope review and corrects 'originate' to 'orginate' in Article 30, paragraph 6, point (b)(ii).

Article 1 – paragraph 1 – point 20, Article 30 – paragraph 6 – subparagraph 2 – point b – point ii: (ii) the scope of this Regulation, including of the possibility to extend the scope of this Regulation to additional goods at risk of carbon leakage,leakage; such as chemicals and petrochemicals, and newly split Combined Nomenclature (CN) codes that originateorginate from CN codes listed in Annexes I and VIII to this Regulation;

Regulation (EU) 2023/956

Regulation (EU) 2023/956

✦ Drops the replacement of Article 30, paragraph 7, and adds a review point on the application of the inward processing procedure as a possible practice undermining environmental integrity.

Article 1 – paragraph 1 – point 20 a (new), Article 30 – paragraph 7: (20a) in Article 30, paragraph 7 is replaced by the following: / "7. Where an unforeseeable, exceptional and unprovoked event has occurred that is outside the control of one or more third countries subject to the CBAM, including countries which have candidate status for European Union membership or have concluded an association agreement with the European Union, and that event has destructive consequences on the economic and industrial infrastructure of such country or countries, including, resulting from prolonged military conflict, the Commission shall assess the situation and submit to the European Parliament and to the Council a report, accompanied, where appropriate, by a legislative proposal, to amend this Regulation by setting out the necessary provisional measures to address those exceptional circumstances. / " ;

Article 1 – paragraph 1 – point 20, Article 30 – paragraph 6 – subparagraph 2 – point b – point iii a (new): (iiia) the application of the inward processing procedure, as a possible practice undermining the environmental integrity of the instrument;

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Amendments 89, 105 and 108

Article 1 – paragraph 1 – point 20

Regulation (EU) 2023/956

✦ Adds a review point on the possibility of redirecting CBAM revenue to affected sectors and reinstates the replacement of Article 30, paragraph 7.

Article 30 – paragraph 6 – subparagraph 2 – point b – point va (new)

Amendment: (va) the possibility of redirecting revenue from the CBAM to the sectors affected by its implementation in order to mitigate its impact.

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 20 a (new), Article 30 – paragraph 7: (20a) in Article 30, paragraph 7 is replaced by the following: / ‘7. Where an unforeseeable, exceptional and unprovoked event has occurred that is outside the control of one or more third countries subject to the CBAM, including countries which have candidate status for European Union membership or have concluded an association agreement with the European Union, and that event has destructive consequences on the economic and industrial infrastructure of such country or countries, including, resulting from prolonged military conflict, the Commission shall assess the situation and submit to the European Parliament and to the Council a report, accompanied, where appropriate, by a legislative proposal, to amend this Regulation by setting out the necessary provisional measures to address those exceptional circumstances.’ ;.

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 20 b (new), Article 30 – paragraph 8a (new): (20b) in Article 30, the following paragraph is added: / ‘8a. Where unforeseeable, exceptional and unprovoked circumstances occur that cause severe harm to the Union internal market due to serious and unforeseen disturbances related to the prices of goods covered by this Regulation, including where the inclusion of a good in Annex I materially contributes to such disturbances, the Commission shall, as appropriate, after taking into account all relevant evidence and following an objective assessment, take the necessary action, including through legislative proposals as appropriate, to redirect the CBAM revenues generated from those goods to the sectors affected by the severe disturbances in the internal market. Such redirection shall apply for a limited period until the exceptional circumstances have ceased.’;

✦ Adds amendments to the table in Annex I, paragraph 1, point 1.

Amendments 110 and 135

Annex I – paragraph 1 – point 1 – table

Regulation (EU) 2023/956

✦ Adds amendments to the table on iron and steel in Annex I, point 2.

Annex I – point 2 – table Iron and Steel

Regulation (EU) 2023/956

✦ Adds new CN codes and Annex IIa, sets a single mass-based threshold of 5 tonnes of net mass for aluminium products in Annex VII, and removes the explanatory statement and budgetary assessment.

EXPLANATORY STATEMENT

Amendments 97, 113 and 133

As foreseen in the original Regulation, the European Commission has come forward with this proposal following the transitional phase of the CBAM (2023–2025), taking into account the lessons learned from this period. The Commission proposes to expand the scope of the CBAM as of 1 January 2028 to include selected steel- and aluminium-intensive downstream products, thereby addressing the risk that emissions are shifted along the value chain rather than effectively reduced. Moreover, this extension aims to safeguard the competitiveness of EU producers by levelling the playing field with producers outside the EU. At the same time, the Commission proposes additional measures to prevent avoidance behaviour, including enhanced reporting requirements, improved traceability of goods, the integration of pre-consumer scrap in emissions calculations, and strengthened powers to address misdeclaration and abusive practices. The underlying principle of the CBAM remains strong: equal carbon pricing to both EU-based producers and those supplying the European market from abroad. The Rapporteur considers this proposal in the broader context of ongoing geopolitical developments, in particular the exceptional and continuing impact of Russia’s war of aggression against Ukraine, which deserves our utmost attention. While acknowledging the Commission’s evaluation of the current regulatory framework, the Rapporteur stresses the need for ongoing monitoring and adaptability. At the same time, the proposal is assessed in light of wider economic and energy developments, including pressures on the prices of certain commodities, the need to safeguard the security of energy supply, and the importance of maintaining energy cooperation with like-minded neighbouring countries.

Regulation (EU) 2023/956

Acknowledging the risk of carbon leakage in downstream sectors, the Commission proposed a list of 180 products to be added to the current CBAM scope. During the stakeholder consultation phase, the Rapporteur notes numerous requests from sectors, also beyond aluminium and steel sectors, to further expand the list. The Rapporteur supports the Commission’s approach, which relies on quantitative criteria, recognised EU databases, and follows the methodology used for the original CBAM. Product selection is based on an assessment of individual goods’ carbon leakage risk, their climate relevance, and the technical feasibility of inclusion. Carbon leakage risk is measured using trade intensity and cost-push indicators, while an emissions floor excludes products with sectoral emissions below a defined threshold, ensuring that the CBAM covers only goods with the highest climate impact. Moreover, the Rapporteur considers that in the upcoming review, the Commission should consider the extension of the scope to include so-called split CN codes originating from the list of products included in the Commission proposal. At this stage, the Rapporteur does not propose extending the CN codes but wishes to continue discussions with other political groups on the basis of the methodology used by the Commission. This makes the CBAM predictable and increases certainty for investors.

Annex I – paragraph 1 – point 1 – tables, Annex I – point 2 – tables – new CN codes, Annex II a (new), Annex VII – point 1 a (new): Annex IIa / In Annex VII, the following point is added: / ‘1a. The single mass-based threshold referred to in Article 2a shall be set at 5 tonnes of net mass for aluminium products.’

The prospect of the CBAM’s definitive application from 1 January 2026 has already begun to incentivise emission reductions and foster international debate on climate action. Regulatory stability is crucial to attract investment for the clean transition, and the newly introduced Article 27a on ‘Serious and unforeseen circumstances’ risks undermining the CBAM’s resilience and predictability, as it could allow scope exclusions to become the target of sector-specific interests. The provision also raises institutional concerns, as the product scope of the CBAM is a core element of the Regulation and should not be subject to the delegated acts procedure. For these reasons, the Rapporteur proposes to delete Article 27a in its entirety. Moreover, the Rapporteur considers that the discussions on the inclusion of international carbon credits for the CBAM compliance are premature and counterproductive. Furthermore, international carbon credits remain characterised by significant price volatility and variable environmental integrity, concerns that have been underlined in a recent assessment by the European Scientific Advisory Board on Climate Change. At the same time, the Rapporteur anticipates that, in collaboration with the Least Developed Countries (LDCs) there could emerge a shared interest in recognising other forms of carbon pricing as a complementary measure to accelerate decarbonisation and facilitate CBAM compliance. Therefore, a thorough assessment is required to evaluate the risks, data requirements, and broader implications of recognising carbon pricing mechanisms in LDCs as potentially compatible within the CBAM framework.

Regulation (EU) 2023/956

The Rapporteur proposes a series of measures to enhance the practical applicability of the CBAM Regulation and reduce uncertainties for operators. Among others, the Commission should publish default values for the newly included downstream goods in a timely manner before their application, using transparent and robust methodologies. At the same time, the Rapporteur highlights that the use of actual values should be the guiding principle. Furthermore, the Rapporteur proposes to define “pre-consumer scrap” and make explicit that the burden of proof lies with importers who wish to declare post-consumer scrap. Considering the newly introduced concept on abusive practices, the Rapporteur stresses the need for clearer rules; defining abusive practices more explicitly, specifying the parameters on which the Commission will monitor risks of such practices, clarifying the Commission’s mandate to adopt additional and ensuring safeguards and transparency in the exercise of these powers.

Amendments 112 and 136

The Rapporteur stresses that the next CBAM revision, due by the end of 2027, should progressively extend coverage to indirect emissions in additional sectors, supporting a coherent EU carbon pricing framework and the Union’s climate-neutrality objectives. Given current disparities in indirect cost compensation across Member States, the Commission should assess technical and policy options, including a gradual phase-in of indirect emissions and a coordinated phase-out of compensation measures. The Commission’s review report from the transitional phase indicates that certain chemicals, polymers, and selected scrap materials could be feasibly included in the future, starting with products with simpler value chains or established EU ETS benchmarks and gradually expanding.

Regulation (EU) 2023/956

The Rapporteur is of the opinion that the proposed amendments create a coherent, technically feasible, and predictable framework, which balances the needs of short-term industrial competitiveness with long-term decarbonisation objectives, strengthens the EU’s carbon pricing framework, and incentivises a fair and effective reduction of greenhouse gas emissions across the Union and with its trading partners.

BUDGETARY ASSESSMENT OF THE COMMITTEE ON BUDGETS

for the Committee on the Environment, Climate and Food Safety

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards the extension of its scope to downstream goods and anti-circumvention measures

(COM(2025)0989 – C100352/2025 – 2025/0419(COD))

Rapporteur for budgetary assessment: Sandra Gómez López

The Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:

The Committee on Budgets,

A. whereas the present proposal aims at extending the scope of the Regulation on the Carbon Border Adjustment Mechanism (CBAM), in order to tackle attempts to avoid compliance, and improve and further simplify certain provisions pertaining to electricity imports;

B. whereas on 20 June 2023, the Commission proposed that the proceeds of the CBAM become an EU own resource; whereas Parliament approved that proposal in its position of 9 November 2023; whereas the proposal on new own resources dating from 2021 has still not been approved by the Council; whereas the latest proposal, of 16 July 2025, on the system of own resources, reaffirms that the use of CBAM-based own resources remains an integral element of the Commission’s own resources package for the 2028-2034 multiannual financial framework (MFF) period;

C. whereas the proposal strives to strike a balance between short-term industrial competitiveness and long-term decarbonisation objectives; whereas the macro-economic impacts of an extension of the scope of the Regulation to downstream goods are projected to be fiscally negligible (less than 0.001 % of GDP);

D. whereas the proposal is projected to entail additional revenue in the order of EUR 580 million annually by 2030 and EUR 690 million by 2035;

E. whereas the additional tasks for the Commission linked to the extension of the Regulation’s scope are estimated to require EUR 5 million in commitment appropriations and EUR 1 million in additional payment appropriations in 2027 for operational expenditure under Heading 3, with no additional administrative costs; whereas the total commitment appropriations for the CBAM’s operational and administrative expenditure under the 2028-2034 MFF period are estimated to amount to around EUR 40 million per year;

F. whereas the additional costs linked to the extension of the Regulation’s scope for the 2028-2034 MFF period are not indicated in detail, and nor are they separated from previous estimates of the cost of implementing the CBAM Regulation, as a whole;

G. whereas an interinstitutional agreement was reached in 2020, approving a package of new own resources devised to enable the EU to finance the joint debt issued after the adoption of the NextGenerationEU funds, one of which is the CBAM; whereas this agreement has since been blocked in the Council and has therefore not yet been implemented, with all of the consequences that this entails for the financing of EU budgets, for the repayment of debt accrued as a result of the NextGenerationEU funds and for the preparation of the 2028-2034 MFF, which is limited in revenue due to non-compliance with that agreement, and has therefore prompted new proposals for own resources and levies that would be detrimental to the EU’s competitive capacity;

1. Welcomes the fact that, following up on the recommendations of the Commission’s December 2025 report on the application of the CBAM Regulation, the proposal to extend the scope of the CBAM Regulation and improve its functioning coincides with Parliament’s repeated calls to broaden the base for CBAM-based own resources;

2. Underlines that the additional revenue would be covered by the Council decision, proposed by the Commission in December 2025, on the system of own resources and would constitute, though modest in volume, genuine, ‘fresh’ and additional revenue, as repeatedly called for in Parliament’s April 2026 interim report on the proposal for the MFF for 2028-2034;

3. Strongly encourages potential further extensions of the scope of the CBAM Regulation in the future, such as an extension of its scope to downstream products; stresses that such scope extensions would automatically broaden the base for CBAM-own resources without requiring further changes to the Council Decision on Own Resources; re-affirms, in this context, that any future revision of the scope or definition of the CBAM Regulation’s sectors and products should follow a strict environmental rationale, on the basis of its environmental effectiveness, implications for EU competitiveness in the global markets, administrative feasibility and innovation capacity; concludes, therefore, that decisions regarding the scope of the CBAM Regulation should not be driven primarily by revenue considerations; emphasises, nevertheless, that an expanded scope, as well as higher CO2 prices, would, all else being equal, lead to higher levels of public income in a domain of exclusive EU competence;

4. Takes note of the necessary additional operational commitment appropriations, as indicated in the Legislative Financial Statement (LFS), amounting to EUR 5 million above the programmed amount for the CBAM line in 2027; reiterates its long-standing position that new tasks and responsibilities should, in principle, be financed by fresh resources; deplores the limited margins available under Heading 3 and Heading 7 of the MFF for 2027; recalls that any redeployments are subject to confirmation as part of the annual budgetary procedure;

5. Takes note of the indicative figures for operational and administrative costs in the LFS, broken down by year, for the 2028-2034 MFF period; considers that these are tangible implications that must be integrated into the budget lines for actions financed under the Commission’s prerogatives under the new Headings 2 and 4, respectively; regrets, in this context, the fact that the LFS does not distinguish, more explicitly, the number of staff members required to cover the tasks related to the extension of the Regulation’s scope to downstream goods from the total number of staff members necessary for the implementation of the CBAM Regulation; assumes, therefore, that the additional tasks are to be covered by existing and already planned numbers of staff members;

6. Is aware of the inherent link between the revision of the CBAM Regulation and the introduction of a temporary decarbonisation fund, which is subject to a separate, dedicated budgetary assessment;

7. Recalls that the amendments or compromises made in the course of the negotiations must not lead to any provisions contradicting Parliament’s established position on the use of CBAM revenue as an own resource; considers it necessary, therefore, to take part in any further negotiations, including the trilogues, in order to monitor consistency with Parliament’s position on own resources and other pertinent budget-related provisions, and to ensure that the final agreement is compatible with the current MFF and Parliament’s position on the 2028-2034 MFF;

8. Acknowledges that any substantive changes in the governance of the implementation and enforcement of the CBAM Regulation, such as those related to penalties for non-compliance, would be beyond the scope of the present initiative; insists, therefore, that in the light of the planned revision of the CBAM Regulation, the proceeds of such penalties must be considered as general revenue for the EU budget;

9. Strongly reiterates the crucial need for sustainable, transparent, predictable and resilient revenue for the EU budget that should match the expenditure side, and the strategic priorities and financing needs of the EU; welcomes the Commission’s efforts to identify new own resources and to put forward certain calibrations of traditional own resources; supports the broader ‘basket approach’ proposed by the Commission, and calls on the Council to unblock the stalemate observed since 2020 on a basket of new genuine own resources, in order to reach an amount of own-resources revenue of at least EUR 60 billion per year; recalls Parliament’s position in its April 2026 interim report that the revenue potential of, among others, a digital services levy aimed at major digital platforms, an online gambling and betting services levy, the extension of the scope of the CBAM Regulation and a levy based on a uniform call rate on capital gains from crypto assets should all be explored as possible additional solutions, in order to ensure tax fairness and a revenue level that is commensurate with needs; stresses that expenditure commitments should be aligned with available resources and that long-term budgetary sustainability should remain a guiding principle of the 2028-2034 MFF.

AMENDMENT

As part of its budgetary assessment, the Committee on Budgets also submits the following amendments to the proposal:

Recital 13 a (new): (13a) The Commission should regularly assess the impact of the CBAM on the competitiveness of European energy industries and those exposed to international trade;

Recital 18 a (new): (18a) The monitoring, verification and reporting obligations provided for in this Regulation should be implemented in a proportionate manner and taking into account the size, resources and administrative capacity of undertakings, in particular small and medium-sized enterprises, avoiding unnecessary administrative burdens;

Recital [50] a (new): (50a) The implications of this Regulation for the Union budget have been assessed+ pursuant to Article 310(4) of the Treaty on the Functioning of the European Union. Sufficient financial and human resources should be provided for its implementation, while considering the impact of the financing on other Union programmes or policies and ensuring its compatibility with the multiannual financial framework, the system of own resources and the corresponding interinstitutional agreement, as well as with the budgetary principles laid down in Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council. / + Pro memoria: Budgetary assessment of the European Parliament’s Committee on Budgets of 23 June 2026 on the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards the extension of its scope to downstream goods and anti-circumvention measures (COM(2025)0989). / [1] Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj).