What changed

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

– 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 (A100000/2026),(A10-0201/2026),

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

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.

✦ Adds a recital on Union support for developing countries, Lower Middle-Income Countries and Least Developed Countries, including financial mechanisms and climate finance.

Recital 3: (3) As the CBAM aims to create incentives for the reduction of emissions by operators in third countries, the Union is committed to working with and supporting developing countries, in particular Lower Middle-Income Countries (LMICs) and Least Developed Countries (LDCs) towards the decarbonisation of their manufacturing industries and, through new partnerships, the Union will work on the development of carbon pricing schemes and other decarbonisation measures. This is part of the external dimension of the European Green Deal5 and in line with the Paris Agreement6. The Union should continue to support those countries through dedicated financial mechanisms within the Union budget, and relevant international climate finance instruments, especially LDCs, in order to contribute to ensuring their adaptation to the obligations under this Regulation. The Union should continue to support climate mitigation and adaptation actions in these countries, including in their efforts towards the decarbonisation and transformation of their industries within the ceiling of the multi-annual financial framework and the financial support provided by the Union to international climate finance. This is further reinforced in the EU global climate and energy vision7, which indicates that the EU will engage proactively with partners to ensure better coherence between internal and external EU policies. While the CBAM gradually enters into application, the Union intends to strengthen partnerships and mult…

Recital 8: (8) Electricity flows from third countries resulting from actions that transmission system operators take to ensure the safe and secure operation of their networks and system security, including handling emergencies, balancing services and unscheduled or unintended exchange flows, should not be subject to this Regulation.

✦ Adds to the recital on electricity market coupling recognition through the European Neighbourhood Policy or where a third country has started a phase-out approach, and drops the reference to transmission system operator institutions and Regulation (EU) 2019/943.

Recital 9: (9) Due recognition of the progress made by the relevant third countries towards market coupling of the electricity systems ensures that any time-limited exemptions as foreseen in this Regulation fully align with the strategic objectives of the Union and those third countries’ specific achievements. The efficient use of the existing electricity infrastructure and the integration of electricity markets of third countries into the internal electricity market of the Union is essential to reduce costs for both Member States and the relevant third countries, as well as to ensure security of supply. Such recognition should be put forward by means of a Memorandum of Understanding between the Commission and the third countries that have fully transposed the relevant electricity market acquis or as verified by the Commission.Commission through the European Neighbourhood Policy (ENP), or when the third country has started the phased out approach for its participation, should the agreement provide for such a provision. Where a third country initiates the process of market integration to fully transpose the electricity market acquis, the Commission should be able to assess the possibility of concluding a Memorandum of Understanding with that third country prior to the completion of the full integration of that acquis. The Memorandum of Understanding should set the timeline for the application of the exemption foreseen in Regulation (EU) 2023/956, while considering adherence to relevant market rules and transmission system operator (TSO) institutions in line with Regulation (EU) 2019/943 of the European Parliament and of the Council8 and Commission Regulation (EU) 2015/12229 , an…rules…

Recital 9 a (new): (9a) In already integrated markets with partial alignment to the EU ETS, differences in scope with the CBAM can raise some practical uncertainties. In such cases, a Memorandum of Understanding can also help to clarify the application of the CBAM, ensure consistency, and support administrative cooperation, while contributing to closer coordination of emissions trading systems.

✦ Replaces the recital on clarifying conditions for declaring actual emissions for electricity imports with conditions aligned to market time units, consumption mix and actual electricity flows, including considering technologies increasing production for export.

Recital 9 b (new): (9b) ClarifyingIn conditionsorder forto declaringensure that the declaration of actual emissions for electricity imports under the CBAM shouldreflects supportmarket arealities, greaterthe useconditions offor using actual values,values notablyshould forbe electricityfurther generatedclarified. fromWhere renewablerelevant sources.data Inis lightavailable ofand ongoingbased decarbonisationon developmentsverifiable ininformation, neighbouringthose regions,conditions thisshould, wouldwhere ensureappropriate, thatbe aligned with the CBAMmarket istime effectiveunit inused promotingin thirdelectricity countries’markets, effortstake tointo accelerateaccount the decarbonisationconsumption ofmix theirin a manner that reflects actual electricity systems.flows, and, where feasible, consider whether and which technologies are increasing production for export to the Union.

✦ Drops recitals on assessing additional sectors and scrap materials and on carbon pricing in Least Developed Countries, and adds recitals on a temporary derogation for outermost regions, on abusive practices including resource shuffling, and on a phased approach to scope.

Recital 10 a (new): (10a) During the transitional phase of the CBAM implementation, the Commission assessed the potential inclusion of additional sectors, in particular organic chemicals, polymers, and scrap materials. That assessment indicates that, despite the complexity of value chains and the role of intermediates, the inclusion of certain chemicals and polymers is technically feasible, and that selected scrap materials from sectors such as pulp, paper, and glass could be considered as candidates for future coverage. 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 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, 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…

Recital 11 a (new): (11a) While the existing enforcement framework under Regulation (EU) 2023/956 addresses a range of avoidance risks, including the misclassification of goods, under-declaration of quantities, failure to submit the CBAM declarations, and the misapplication of de minimis thresholds, additional provisions are needed to effectively address the risks of abusive practices. Such provisions are necessary to prevent distortions of competition and ensure a level playing field.

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 11 a (new): (11a) While the existing enforcement framework under Regulation (EU) 2023/956 addresses a range of avoidance risks, including the misclassification of goods, under-declaration of quantities, failure to submit the CBAM declarations, and the misapplication of de minimis thresholds, additional provisions are needed to effectively address the risks of abusive practices, prevent distortions of competition and ensure a level playing field.

Recital 12 a (new): (12a) Abusive practices can also occur in case of resource shuffling. Those practices can include, but are not limited to, situations whereby third countries or operators in these countries adapt to the CBAM by dedicating a limited number of installations to exports to the Union internal market, with or without dedicated investments in decarbonisation. Another possible relevant factor in assessing the high risk of abusive practices in the case of resource shuffling is the fact that these exports are not part of a country-wide effort to reduce emissions.

Recital 13: (13) In order to ensure the effective implementation and enforcement of Regulation (EU) 2023/956, the Commission should monitor the impact of the CBAM on the Union internal market with a view to assessing the risk of abusive practices undermining the effectiveness of the CBAM and the potential impact on the Union internal market, including through an analysis of customs import declarations and CBAM declarations or on the basis of any relevant source of information, including from Member States through exchanges in the Expert Group on the CBAM or other relevant exchanges. The identification of such practices should be based on transparent and objective criteria, trends in import volumes, the level and consistency of declared emissions from installations in third countries, economic incentives for operators to engage in abusive practices and the degree of heterogeneity in emission intensities of specific products.

✦ Drops recitals on delegated acts for abusive practices, on pre-consumer scrap emissions, and on engagement with third countries, and adds recitals on country-level default values, annual assessment of default values, proportionality for small and medium-sized enterprises, pre-consumer aluminium scrap, and cooperation with third countries.

Recital 14: (14) To enable a swift reaction in the case of evidence pointing towards a high risk of abusive practices, the Commission should be empowered to adopt delegated acts to lay down, for the use of actual emissions for a combination of goods and origins, the information to be declared as well as the evidence demonstrating that such abusive practices have not materialised. Where the Commission finds sufficient evidence pointing towards a high risk of abusive practices, the Commission should be required to act by way of delegated acts within three months after the finding. The measures that the Commission should be able to adopt to define additional reporting obligations for those goods and origins identified for a high risk of abusive practices, should be designed in a proportionate manner, time-limited with the possibility of extension based on regular assessments, supported by regulatory guidance and they should not place unnecessary burden on operators and importers.

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 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 and pre-consumer steel scrap should 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 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 classification of such materials. / 1a Council Regulation (EU) No 333/2011 of 31 March 2011 establishing criteria determining when c…

Recital 14: (14) To effectively address abusive practices, country-level default values should be applied systematically and ex ante to combinations of countries and goods defined as being at high risk of abusive practices, notably resource shuffling. To identify the combinations of goods and countries at high risk of abusive practices, the Commission should evaluate at least the following indicators: a higher heterogeneity of emission intensities, the ability to circumvent measures, the third country’s climate ambition and the risks of voluntary public intervention to re-allocate production. Operators and importers should retain the possibility to use actual values when they fulfil previously defined set of criteria, that confirm that they do not engage in abusive practices. The evidence to be provided should be designed in a proportionate manner and should not place unnecessary burden on operators and importers.

Recital 20 a (new): (20a) The Commission should actively engage with third countries to foster interoperability of carbon pricing systems and to align monitoring, reporting, and verification (MRV) practices. Such engagement should aim at the development of common principles and the mutual recognition of comparable carbon pricing systems. The Commission should report regularly on the progress and outcomes of those efforts.

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.

Recital 20 b (new): (20b) Considering the potential role of carbon pricing mechanisms in Least Developed Countries (LDCs), the Commission should further assess, in the context of implementing Regulation (EU) 2023/956, the conditions under which such mechanisms could support the application of Regulation (EU) 2023/956, ensuring that any such approach is underpinned by robust data, environmental integrity, and a thorough evaluation of potential risks.

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.

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…

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.

Recital 21: deleted

✦ Adds a recital empowering the Commission to adopt implementing acts on material and chemical compositions in customs declarations and laboratory sampling by national customs authorities.

Recital 32: (32) For certain goods, such as the clinker content of cement, the nitrogen content of fertilisers or the alloying elements of steel, the material and chemical compositions of the good is an important determining factor of the embedded emissions. To address the risk of misdeclaration of the embedded emissions determined on the basis of actual emissions for certain goods that are subject to a higher heterogeneity of emission intensities, the Commission should be empowered to adopt implementing acts to identify the material and chemical compositions of a good in the customs declaration, rules for laboratory sampling procedures to be carried out by national custom authorities.

Recital 36: (36) To prevent practices which could undermine the achievement of the objectives of the CBAM, the Commission should continuously monitor at Union level practices of circumvention consisting of artificially adjusting the supply chain of goods to avoid the obligations laid down in Regulation (EU) 2023/956. Furthermore, the Commission should continue to assess other anti-circumvention risks not yet addressed in Regulation (EU) 2023/956, and, where necessary, review and address such risks, in order to ensure a swift and effective response.

✦ Wording Rephrases the recital on prolonged military conflict, changing 'the conflict' to 'that conflict' and 'reassess' to 'assess'.

Recital 36 a (new): (36a) The exceptional and unforeseeable circumstances resulting from prolonged military conflict, and their severe impact on the economic and industrial infrastructure of affected regions, should be considered. In light of the evolving nature of thethat conflict and its potential economic consequences, the Commission should regularly reassessassess whether the conditions for the application of Article 30(7) of Regulation (EU) 2023/956 are fulfilled, and, where appropriate, consider submitting a report accompanied by a legislative proposal providing for provisional measures. In that context, particular attention should be paid to the capacity of operators in affected regions to comply with the CBAM requirements, as well as to the broader objective of supporting economic resilience and decarbonisation.

Recital 36 b (new): (36b) The Commission should continuously monitor the carbon intensity of products falling under newly split Combined Nomenclature (CN) codes that originate from CN codes listed in Annexes I and VIII to Regulation (EU) 2023/956. The Commission, in the context of upcoming reviews, should assess, on an ongoing basis, the possibility of including such new codes within the scope of Annexes I and VIII to that Regulation.

Recital 37: deleted

✦ Drops recitals on extending indirect emissions coverage and on carbon pricing in Least Developed Countries, and adds recitals on online platforms as authorised CBAM declarants for distance sales and on assessing options for indirect cost compensation.

Recital 45 a (new): (45a) To ensure a robust and coherent Union carbon pricing framework, strengthen decarbonisation incentives, and contribute to achieving a climate-neutral Union by 2050, the CBAM should progressively and coherently extend the coverage of indirect emissions, which are already included for fertilisers and cement, to other sectors. Given the current dispersion in the use of indirect cost compensation across Member States, which risks undermining the uniform application of carbon pricing, the Commission should assess the technical and policy options, including the gradual phase-in of indirect emissions across sectors and a coordinated phase-out of compensation measures for indirect costs, and present a proposal by the end of 2027.

Recital 40 a (new): (40a) As the extension of the CBAM to downstream products covers goods intended for final consumers, there is a risk of distortion of competition between economic operators established in the Union importing consumer goods subject to the CBAM and online platforms facilitating distance sales of the same goods from third countries, which would not be subject to equivalent obligations. This unlevel playing field creates a loophole that is liable to undermine both fair competition and the environmental integrity of the mechanism. Since online platforms are thereby already designated as importers for distance sales under the reformed Union Customs Code, whether acting in their own name or through an appointed representative assuming that status, it is appropriate to provide that such importers for distance sales, or their appointed representatives where applicable, equally assume the status of authorised CBAM declarant. They should be responsible, in that capacity, for declaring the totality of aggregated imports of CBAM goods facilitated over the course of a year and for surrendering the corresponding CBAM certificates. In such a case, the importer is therefore the importer for distance sales, and not the final consumer.

Recital 45 a (new): (45a) Given the current dispersion in the use of indirect cost compensation across Member States, which risks undermining the uniform application of carbon pricing, the Commission should assess the technical and policy options.

Recital 47 a (new): (47a) The Commission should publish the default values referred to in Regulation (EU) 2023/956 in a timely manner before their application. Those default values should be regularly reviewed and, where appropriate, updated on the basis of the most recent reliable and publicly available data and in accordance with transparent and robust methodologies.

Recital 50: deleted

✦ Adds a recital on the budgetary implications of the Regulation, sufficient financial and human resources, and a budgetary assessment by the Committee on Budgets.

Recital 50 a (new): (50a) The implications of Regulation (EU) 2023/956 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).

Regulation (EU) 2023/956

✦ Drops a provision on Memoranda of Understanding timelines and adds a provision excluding electricity flows from transmission system operators' secure network operation from the scope.

Article 1 – paragraph 1 – point 1 – point c, Article 2 – paragraph 7a – subparagraph 2: The Memorandum of Understanding referred to in the first subparagraph shall set the timeline for the application of the exemption foreseen in Article 2(7) and the timeline for the implementation of a carbon pricing instrument equivalent to the EU ETS, insofar as electricity generation is concerned. Where a third country initiates the process of market integration to fully transpose the electricity market acquis, the Commission may assess the possibility of concluding a Memorandum of Understanding with that third country prior to the completion of the full integration of that acquis.

Article 1 – paragraph 1 – point 1 – point a a (new), Article 2 – paragraph 3 a – point b a (new): (aa) in paragraph 3a, the following point is added: / '(ba) electricity flows originating from third countries, resulting from actions undertaken by transmission system operators to ensure the secure and stable operation of their networks, including unscheduled or unintended exchange flows, use of balancing services and handling emergencies.';

Regulation (EU) 2023/956

✦ Drops a provision on delegated acts to amend lists of third countries and adds a provision on Memoranda of Understanding timelines taking into account accession target dates and enlargement policy.

Article 1 – paragraph 1 – point 1 – point e, Article 2 – paragraph 11: 11. The Commission is empowered to adopt delegated acts in accordance with Article 28 in order to amend the lists of third countries or territories listed in point 1 or 2 of Annex III by adding or removing a third country or territory, depending on whether the conditions set out in paragraph 6, 7 or 9 of this Article are fulfilled in respect of that third country or territory, or as a consequence of the incorporation of the CBAM into the EEA Agreement.

Article 1 – paragraph 1 – point 1 – point c, Article 2 – paragraph 7 a – subparagraph 2: The Memorandum of Understanding referred to in the first subparagraph shall set the timeline for the application of the exemption foreseen in Article 2(7), taking into account the target date for accession and aligning with the Union’s enlargement policy towards the relevant third country, and the timeline for the implementation of a carbon pricing instrument equivalent to the EU ETS, insofar as electricity generation is concerned. Where a third country initiates the process of market integration to fully transpose the electricity market acquis, the Commission may assess the possibility of concluding a Memorandum of Understanding with that third country prior to the completion of the full integration of that acquis;

Regulation (EU) 2023/956

✦ Drops a provision on agreements with third countries on carbon pricing and mutual recognition of accreditation bodies, and adds a provision on evidence that an exemption resulted in indirect importation of energy subject to Union restrictive measures.

Article 1 – paragraph 1 – point 1 – point e, Article 2 – paragraph 12: 12. The Union may conclude agreements with third countries or territories with a view to taking into account carbon pricing mechanisms in such countries or territories for the purposes of the application of Article 9 as well as the mutual recognition of third-country accreditation bodies for the accreditation of a legal person to be a verifier pursuant to Article 18. The Commission shall actively engage with third countries on the interoperability of carbon pricing systems and the alignment of monitoring, reporting and verification (MRV) systems;

Article 1 – paragraph 1 – point 1 – point d a (new), Article 2 – paragraph 9 – point c a (new): (da) in paragraph 9, the following point is added: / '(ca) the Commission has evidence that the exemption has resulted in the indirect importation into the Union of energy from sources subject to Union restrictive measures.';

Regulation (EU) 2023/956

✦ Drops the definition of abusive practices and adds a provision requiring the Commission to publish agreements, Memoranda of Understanding, roadmaps, commitments and strategies.

Article 1 – paragraph 1 – point 3, Article 3 – paragraph 1 – point 35: (35) ‘abusive practices’ are practices pursued by an actor reporting actual emission values for the purpose of gaining a benefit by unduly avoiding, wholly or partially, the CBAM financial liability and thereby undermining the effectiveness of the CBAM to address the risk of carbon leakage in the EU.;

Article 1 – paragraph 1 – point 1 – point d b (new), Article 2 – paragraph 9 a (new): (db) the following paragraph is inserted: / '9a. The Commission shall make available on their website and update, as relevant, at least on an annual basis, all agreements, Memoranda of Understanding, roadmaps, commitments, and strategies referred to in paragraphs 7 and 7a, the full list of Union law covered by such documents, and the Commission’s assessments of the progress towards or the fulfilment of the conditions set out in paragraph 7 prior to the signing of the Memoranda of Understanding referred to in paragraph 7a and prior to the listing of the third countries in point 2 of Annex III referred to in paragraph 8.';

Regulation (EU) 2023/956

✦ Drops the definition of pre-consumer scrap and adds a provision on delegated acts to amend lists of third countries or territories in Annex III.

Article 1 – paragraph 1 – point 3, Article 3 – paragraph 1 – point 35 a (new): (35a) 'pre-consumer scrap’ means materials or objects generated unintentionally during the manufacturing process of a product, which are suitable for immediate reuse in another production process, and are not discarded or classified as waste under Directive 2008/98/EC.

Article 1 – paragraph 1 – point 1 – point e, Article 2 – paragraph 11: The Commission is empowered to adopt delegated acts in accordance with Article 28 in order to amend the lists of third countries or territories listed in point 1 or 2 of Annex III by adding or removing a third country or territory, depending on whether the conditions set out in paragraph 6, 7 or 9 of this Article are fulfilled in respect of that third country or territory, or as a consequence of the incorporation of the CBAM into the EEA Agreement.

Regulation (EU) 2023/956

✦ Drops a provision on monitoring the impact of the CBAM and adopting delegated acts for high-risk combinations of goods and origins, and adds a provision on agreements with third countries on carbon pricing and mutual recognition of accreditation bodies.

Article 1 – paragraph 1 – point 5 – point c, Article 6 – paragraph 7 – subparagraph 1: The Commission shall monitor at Union level the impact of the CBAM on the Union internal market. Where the Commission, taking into account relevant information, including from customs import declarations and CBAM declarations, finds that there is sufficient evidence pointing towards a high risk of abusive practices for a combination of goods and origins, it may inform importers and authorised CBAM declarants about these risks, it may inform competent authorities and customs authorities about these risks with a view of increasing their level of control, and it is empowered to adopt delegated acts in accordance with Article 28 to supplement this Regulation by laying down the methods for the identification of the combination of goods and origins, the information to be declared for the use of actual emissions for those combinations of goods and origins as well as the evidence to be provided to demonstrate that no abuse has taken place. Measures for additional reporting obligations for those goods and origins identified as a high risk for abusive practices, shall be designed in a proportionate manner, time-limited and supported by regulatory guidance.

Article 1 – paragraph 1 – point 1 – point e, Article 2 – paragraph 12: The Union may conclude agreements with third countries or territories with a view to taking into account carbon pricing mechanisms in such countries or territories for the purposes of the application of Article 9 as well as the mutual recognition of third-country accreditation bodies for the accreditation of a legal person to be a verifier pursuant to Article 18. The Commission shall actively engage with third countries on the interoperability of carbon pricing systems and the alignment of monitoring, reporting and verification (MRV) systems;

Regulation (EU) 2023/956

✦ Adds provisions on temporary derogations for outermost regions, distance sales thresholds, simplified reporting for Least Developed Countries, definitions of importer, distance sales, resource shuffling and pre-consumer aluminium scrap, authorised CBAM declarant status, declaration evidence, delegated acts on high-risk goods, and technical assistance.

Article 1 – paragraph 1 – point 1 – point e a (new), Article 2 – paragraph 12 a (new): (ea) the following paragraph is added: / '12a. A Member State may request the Commission to authorise a temporary derogation of 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 only where the Member State demonstrates, on the basis of verifiable evidence, 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. / The request shall 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

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

Article 1 – paragraph 1 – point 2 a (new), Article 2a – paragraph 3 a (new): (2a) in Article 2a, the following paragraph is inserted: / '3a. By 30 April of each calendar year, the Commission shall assess, on the basis of import data and embedded emissions data disaggregated by CN code for the preceding 12 calendar months, whether the application of the single mass-based threshold leads to the exclusion of goods representing more than (2%) of the embedded emissions associated with the goods covered under a given CN code. Where such threshold is found to undermine the effectiveness of the mechanism, creates incentives for circumvention or carbon leakage, or distort the level playing field within the internal market, the Commission shall present a report to the Parliament and the Council accompanied by a legislative proposal where appropriate.’;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 2 b (new), Article 2 b (new): (2b) the following Article is inserted: / ‘Article 2b / The Commission shall adopt implementing acts specifying conditions under which simplified reporting obligations are to be applied to LDCs. Those simplified reporting obligations shall aim in particular to facilitate the market participation of small and medium operators in LDCs, while maintaining reliable reporting, upholding climate integrity, and paying particular attention to avoiding circumvention. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).’;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 2 c (new), Article 3 – point 15: (2c) in Article 3, point 15 is replaced by the following: / "(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]; / " ;

(32023R0956)

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 2 d (new), Article 3 – point 15a (new): (3a) in Article 3, the following point is added: / ‘(15a) distance sales’ means distance sales of goods imported from third countries or third territories as defined in Article 14(4), point (2), of Directive 2006/112/EC.’;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 2 e (new), Article 3 – point 34 a (new): (2e) in Article 3, the following point is added: / '(34a) resource shuffling' means any reorganisation of production, sales or supply chain patterns that redirects existing lower-emission goods to the Union market while shifting higher-emission goods elsewhere, without creating new and verifiable low-carbon capacity and without any net reduction in greenhouse gas emissions at producer level in the country of origin;’;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 3, Article 3 – point 35: (35) ‘abusive practices’ are practices pursued by an actor for the purpose of gaining a benefit by unduly avoiding, wholly or partially, the CBAM financial liability and thereby undermining the effectiveness of the CBAM to address the risk of carbon leakage in the EU. It includes, but is not limited to, resource shuffling.

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 3 a (new), Article 3 – paragraph 1 – point 35 a (new): (3a) in Article 3, the following point is added: / ‘(35a) pre-consumer aluminium scrap’ means an aluminium co-product generated in the production process of metal goods and immediately reusable in a production process, and not discarded or classified as waste under Directive 2008/98/EC.’;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 3 b (new), Article 5 – paragraph 1: (3b) in Article 5, paragraph 1 is replaced by the following: / "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”). / " ;

(32023R0956)

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 3 c (new), Article 5 – paragraph 2: (3c) in Article 5, paragraph 2 is replaced by the following: / "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. / " ;

(32023R0956)

Regulation (EU) 2023/956

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) 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;' ;

Regulation (EU) 2023/956

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) 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

Article 1 – paragraph 1 – point 5 – point a – point 2, Article 6 – paragraph 2 – point e: (e) where applicable for the purpose of addressing the risk of misdeclaration resulting from the lack of supply chain traceability, evidence that the goods imported during the preceding calendar year were produced at the declared installation and at the actual time of production referred to in the CBAM declaration, and where relevant, information on the installation of where "melt and pour" took place;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 5 – point a – point 2, Article 6 – paragraph 2 – point f: (f) for a combination of good and origin identified to be at a high risk of abusive practices in the delegated acts adopted in accordance with paragraph 7, evidence demonstrating that no abusive practices have occurred, where CBAM declarants want to determine embedded emissions are determined on the basis of actual emissions;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 5 – point b, Article 6 – paragraph 6: The Commission is empowered to adopt implementing acts concerning the standard format of the CBAM declaration, including detailed information for each step of the production chain, installation, including the production technology used, and country of origin or other third country and type of goods to be reported, which supports the totals referred to in paragraph 2 of this Article, in particular as regards embedded emissions, the carbon price paid, the default carbon price for the purpose of Article 9(4), the procedure for submitting the CBAM declaration via the CBAM registry, including procedures for the review of CBAM declarations in accordance with Article 19, and the arrangements for surrendering the CBAM certificates referred to in paragraph 2, point (c), of this Article, in accordance with Article 22(1), in particular as regards the process and the selection by the authorised CBAM declarant of certificates to be surrendered.;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 5 – point c, Article 6 – paragraph 6 a: 6a. The Commission is empowered to adopt delegated acts listing the goods or combinations of goods and origins at high risk of abusive practices for which evidence is to be included in the CBAM declaration as laid down in paragraph 2, point (e), as well as the specific type of evidence to be provided. Those delegated acts shall be adopted in accordance with the examination procedure referred to in Article 28(2).

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 5 – point c, Article 6 – paragraph 7 – subparagraph 1: The Commission shall monitor at Union level the impact of the CBAM on the Union internal market with a view to assessing the risk of abusive practices undermining the effectiveness of the CBAM using, inter alia, relevant information, including from customs import declarations and CBAM declarations. / The Commission shall, for the purpose of identifying combinations of goods and origins at high risk of abusive practices, conduct an objective assessment that considers, at least, the following criteria: / (a) the low-carbon production capacity compared to the volumes exported to the Union and by examining the breakdown of production processes; / (b) progress in greenhouse gas reduction and the level of climate ambition, in particular where the country of origin applies a carbon pricing mechanism covering the relevant sector, and whether relevant climate policy measures are in place; / (c) the compliance with market economy rules, in particular as assessed through recognised indicators such as the OECD Product Market Regulation (PMR) indicator, the existence of EU anti-dumping or anti-subsidy measures in force against the country in the relevant sector pursuant to Regulations (EU) 2016/1036 and (EU) 2016/1037 / (d) a higher heterogeneity of emission intensities. / The Commission shall regularly review the combinations of goods and origins referred to in the second subparagraph. / For the combination of goods and countries of origin defined at high risk of abusive practices defaul…

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 6 – point c, Article 7 – paragraph 7 – subparagraph 2 a (new): The implementing acts referred to in the first subparagraph may provide a list of downstream goods for which, due to the complexity of the supply chain and without prejudice to the environmental integrity of the CBAM, no mark-up is to apply, on the basis of transparent and pre-defined criteria.

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 6 a (new), Article 8: (6a) Article 8 is replaced by the following: / "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. / " ;

(32023R0956)

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 7 – point b – point 1, Article 9 – paragraph 5 – subparagraph 1: The Commission is empowered to adopt implementing acts, based on the principle of equivalence, concerning the conversion of the yearly average carbon price effectively paid in accordance with paragraph 1 of this Article and of the yearly default carbon prices determined in accordance with paragraph 4 of this Article into a corresponding reduction of the number of CBAM certificates to be surrendered. Those acts shall also govern the conversion of the carbon price expressed in foreign currency into euro at the yearly average exchange rate, the evidence required of the actual payment of the carbon price, examples of any relevant rebate or other form of compensation referred to in paragraph 1 of this Article, the qualifications of the independent person referred to in paragraph 2 of this Article and the conditions to ascertain that person’s qualifications and independence. The qualifications mentioned in the previous paragraph shall include the granting of accreditation by a national accreditation body, the specification of the certification procedures, and the appropriate exchanges of information between the independent person, national accreditation bodies, the European Commission and competent authorities. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Regulation (EU) 2023/956

✦ Drops Article 27a and adds a provision that trade or cooperation agreements with third countries shall not exempt declarants from obligations or undermine the CBAM.

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

Article 1 – paragraph 1 – point 7 a (new), Article 9 a (new): (7a) the following Article is inserted: / ‘Article 9a Trade, cooperation or other agreements concluded by the Union with third countries, unless specifically providing for linking with the EU ETS, shall not directly or indirectly exempt authorised CBAM declarants from obligations under this Regulation, lower the level of obligations applicable to goods covered by this Regulation, or contain provisions that could undermine the effective implementation of the CBAM or give rise to trade remedies in response to its application.’;

Regulation (EU) 2023/956

✦ Drops a provision on delegated acts and adds provisions on technical assistance to developing countries and international cooperation on carbon pricing.

Article 1 – paragraph 1 – point 18 – point a, Article 28 – paragraph 2: 2. The power to adopt delegated acts referred to in Article 2(10) and (11), Article 2a (3), Article 6(7), Article 18(3), Article 20(5a) and (6), and Article 27(6) shall be conferred on the Commission for a period of five years from [date of entry into force of this amending Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for further periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

Article 1 – paragraph 1 – point 8 a (new), Article 10 b (new): (8a) the following Article is inserted: / ‘Article 10b / 1. The Union shall facilitate the effective implementation of this Regulation by providing technical assistance, when necessary, to developing countries with special interest to LDCs. / 2. The Commission shall develop a comprehensive framework of technical assistance, using existing instruments, aimed at supporting competent authorities in developing countries in relation to: / (a) facilitating compliance with the requirements for the monitoring, reporting and verification (MRV) of embedded emissions in goods covered by this Regulation as well as the alignment of MRV practices globally / (b) the development and implementation of reliable emissions accounting systems consistent with Union methodologies; / (c) the collection, management and transmission of emissions data required for CBAM reporting and the use of digital tools made available under this Regulation; and / (d) the development of regulatory and institutional capacity relevant to carbon pricing or equivalent climate policy instruments, with a view to fostering the interoperability of carbon pricing systems. / 3. Technical assistance may include, inter alia: / (a) capacity-building assistance and training for public authorities and private operators, including through the Technical Assistance and Information Exchange (TAIEX) tool; / (b) the provision of methodological guidance, digital tools and technical documentation necessary for the calculation and reportin…

Regulation (EU) 2023/956

✦ Adds provisions on EU customs authority coordination, Commission support for implementation, evidence for actual emissions, repurchase of excess certificates, implementing acts on material compositions, monitoring of distance sales thresholds, anti-circumvention rules, and delegated acts on default values.

Article 1 – paragraph 1 – point 8 b (new), Article 10 c (new): (8b) the following Article is inserted: / ‘Article 10 c / International cooperation on carbon pricing / 1. The Commission shall proactively engage with third countries and international organisations to promote carbon pricing policies, enhance transparency and mutual understanding on the CBAM, and encourage collaborative solutions to technical and policy concerns raised by third countries. / 2. The Commission shall engage constructively with international coalitions and initiatives that seek to advance multilateral action on industrial decarbonisation and carbon pricing. / 3. The Commission shall report every three years to the European Parliament and to the Council.’;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 8 c (new), Article 11 – paragraph 3 a (new): (8c) Article 11 is amended as follows: / (a) the following paragraph is added: / ‘3a. The EU customs authority (EUCA) shall oversee and support effective coordination between the competent authorities and their customs authorities, ensuring the customs authorities can perform their functions and duties, as referred to in Article 25 of this Regulation.’;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 8 d (new), Article 12: (8d) Article 12 is replaced by the following: / "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. / " ;

(32023R0956)

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 11, Article 19 – paragraph 2 a (new): 2a. Where the embedded emissions are determined on the basis of actual emissions, the Commission or the competent authority of the Member State where the CBAM declarant is established may, as part of the review of the CBAM declaration, request the authorised CBAM declarant to provide evidence that the goods imported were produced at the installation referred to in the CBAM declaration. Where relevant, the evidence on the installation of “melt and pour” shall be provided by means of a mill certificate.

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 14, Article 23 – paragraph 1 – second subparagraph: The excess CBAM certificates shall be repurchased through the common central platform referred to in Article 20. Repayment for repurchased certificates shall be disbursed to the authorised CBAM declarant by 31 December of the same year at the latest;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 15 – point d, Article 25 – paragraph 7: 7. The Commission is empowered to adopt implementing acts to identify the material and chemical compositions, rules for laboratory sampling procedures to be carried out by national custom authorities, as well as the requirement to use TARIC codes in addition to CN codes, of goods listed in Annex I. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29(2).

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 15 a (new), Article 25b (new): (15a) the following Article is inserted: / '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

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 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; / "

(32023R0956)

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 16 – introductory part, Article 27 – paragraph 2 – point c – introduction: (16) in Article 27(2), the following points are added:

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 16, Article 27 – paragraph 2 – point c: ‘(c) artificially adjusting the supply chains for the sole purpose of avoiding CBAM obligations and where such adjustment lacks any economic, commercial, operational or sustainability-related justification other than benefiting from lower default values.’;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 16 a (new), Article 27 – paragraph 6a (new): (16a) in Article 27, the following paragraph is added: / '6a. Where the Commission, taking into account the relevant data, reports and statistics, including those provided by customs authorities, has sufficient reasons to believe that the circumstances referred to in paragraph 2, point (c), of this Article, are occurring by way of an established pattern, it is empowered to adopt delegated acts in accordance with Article 28 to temporarily apply the default values for the third country where most of the production takes place in terms of input material (precursors) contained in the imported goods, or to temporarily apply the default values of the third country where production used to originate from before the artificial adjustment of the supply chain started.’;

Regulation (EU) 2023/956

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

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 18 – point a, Article 28 – paragraph 2: 2. The power to adopt delegated acts referred to in Article 2(10) and (11), Article 2a (3), Article 6(7), Article 18(3), Article 20(5a) and (6), Article 27(6) and shall be conferred on the Commission for a period of five years from [date of entry into force of this amending Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for further periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 18 – point a, Article 28 – paragraph 3: 3. The delegation of power referred to in Article 2(10) and (11), Article 2a (3), Article 6(7), Article 18(3), Article 20(5a) and (6), and Article 27(6) may be revoked at any time by the European Parliament or by the Council.;

Regulation (EU) 2023/956

✦ Formal Adds a comma in the list of articles for delegated acts in Article 28(7).

Article 1 – paragraph 1 – point 18 – point b, Article 28 – paragraph 7: 7. A delegated act adopted pursuant to Article 2(10) and (11), Article 2a (3), Article 6(7), Article 18(3), Article 20(5a) and (6)(6), and Article 27(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.;

Regulation (EU) 2023/956

✦ Formal Updates the heading of Article 28a to indicate it is new and adds two deleted lines.

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

Regulation (EU) 2023/956

✦ Drops a provision on assessing carbon leakage risk for exports and adds provisions on reporting on developing countries, scope extension, carbon pricing interoperability, pre-consumer steel scrap, mass-based thresholds, indirect emissions, and exceptional circumstances.

Article 1 – paragraph 1 – point 19 a (new), Article 30 – paragraph 5: (19a) In Article 30, paragraph 5 is replaced by the following: / ‘5. Every two years from the end of the transitional period, as part of its annual report to the European Parliament and to the Council pursuant to Article 10(5) of Directive 2003/87/EC, the Commission shall assess the effectiveness of the CBAM in addressing the carbon leakage risk of goods produced in the Union for export to third countries which do not apply the EU ETS or a similar carbon pricing mechanism. The report shall in particular assess the development of Union exports in CBAM sectors and the developments as regards trade flows and the embedded emissions of those goods on the global market. Where the report concludes that there is a risk of carbon leakage of goods produced in the Union for export to such third countries which do not apply the EU ETS or a similar carbon pricing mechanism, the Commission shall, where appropriate, present a legislative proposal to address that risk in a manner that complies with World Trade Organization law and that takes into account the decarbonisation of installations in the Union. The Commission shall also report on the progress and outcomes of its engagement with third countries on the interoperability of carbon pricing systems and the alignment of monitoring, reporting and verification (MRV) systems.’

Article 1 – paragraph 1 – point 20, Article 30 – paragraph 6 – subparagraph 2 – point a – point vii: (vii) developing countries with special interest to LDCs, particularly as regards impacts on trade flows, participation in global value chains, employment, fiscal revenues, and compliance challenges, as well as any unintended environmental impacts; and

Regulation (EU) 2023/956

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, and newly split Combined Nomenclature (CN) codes that originate from CN codes listed in Annexes I and VIII to this Regulation;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 20, Article 30 – paragraph 6 – subparagraph 2 – point b – point ii a (new): (iia) the progress and outcomes of its engagement with third countries on the interoperability of carbon pricing systems and the alignment of monitoring, reporting and verification (MRV) systems.

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 20, Article 30 – paragraph 6 – subparagraph 2 – point b – point ii b (new): (iib) the impact of attributing emissions to pre-consumer steel scrap as a precursor on the effectiveness of the CBAM in addressing the risk of carbon leakage, as well as the impact on the availability of scrap and recycling practices in the EU and globally;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 20, Article 30 – paragraph 6 – subparagraph 2 – point b – point ii c (new): (iic) the impact of the mass-based threshold for effectively addressing carbon leakage and ensuring a level playing field for CBAM covered sectors, in particular aluminium, and the appropriateness of differentiated mass-based thresholds per sector;

Regulation (EU) 2023/956

Article 1 – paragraph 1 – point 20, Article 30 – paragraph 6 – subparagraph 2 – point b – point ii d (new): (ii d) technical and policy options for the gradual inclusion of indirect emissions into the CBAM in further sectors, including the impact of such an extension on the competitiveness and decarbonisation of energy-intensive sectors in the Union, the availability of reliable and verifiable data, the current dispersion of national indirect cost compensation measures and its implications for the uniform application of Union carbon pricing;

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. / " ;

(32023R0956)

Regulation (EU) 2023/956

✦ Drops a provision on reporting on scope extension and adds a provision on redirecting CBAM revenues to sectors affected by severe market disturbances.

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 and newly split Combined Nomenclature (CN) codes that originate from CN codes listed in Annexes I and VIII to this Regulation;

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.’;

Regulation (EU) 2023/956

Regulation (EU) 2023/956

EXPLANATORY STATEMENT

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.

✦ Adds a budgetary assessment by the Committee on Budgets, including conclusions and amendments on competitiveness, proportionality for small and medium-sized enterprises, and budgetary implications.

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).