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

Committee on the Environment, Climate and Food Safety · Rapporteur: Mohammed Chahim

✦ In short · AI summary of this text, generated 19 Sept 2026

The rapporteur's draft report sets out Parliament's amendments to the Commission proposal amending Regulation (EU) 2023/956, which extends the CBAM to downstream goods and adds anti-circumvention measures.¶¶ It deletes the proposed Article 27a on serious and unforeseen circumstances and the recitals on removing goods from scope and on international carbon credits.¶¶¶ It adds rules on pre-consumer scrap, abusive practices, Memoranda of Understanding with third countries, indirect emissions and default values.¶¶¶ It asks the Commission to report on export carbon leakage, to engage third countries on carbon pricing interoperability and to assess carbon pricing in Least Developed Countries.¶¶¶

Committee position. The rapporteur proposes to amend the Commission proposal by deleting Article 27a and the carbon credits recital, and by adding rules on pre-consumer scrap, abusive practices, Memoranda of Understanding, indirect emissions, default values and third-country engagement.¶¶¶

Key points

The scope of Regulation (EU) 2023/956 should be gradually extended to products further down the value chain, based on quantitative and transparent methodologies.¶
Electricity flows from third countries for safe and secure network operation, including balancing services and unscheduled or unintended exchange flows, should not be subject to the Regulation.¶
A Memorandum of Understanding between the Commission and a third country should set the timeline for the exemption and for implementing a carbon pricing instrument equivalent to the EU ETS; the Commission may assess concluding one before full integration of the electricity market acquis.¶¶
A Memorandum of Understanding can clarify CBAM application in already integrated markets with partial alignment to the EU ETS, and clarifying conditions for declaring actual emissions should support greater use of actual values, notably for renewable electricity.¶¶
The Commission assessed including organic chemicals, polymers and scrap materials; certain chemicals and polymers are technically feasible and selected scrap from pulp, paper and glass could be candidates, with a gradual phased approach.¶
Additional provisions are needed against abusive practices, and the Commission should monitor the CBAM's impact on the internal market using transparent and objective criteria, import volumes, declared emissions and emission intensity heterogeneity.¶¶
Where there is sufficient evidence of a high risk of abusive practices, the Commission must act by delegated acts within three months; measures should be proportionate, time-limited with possible extension, supported by regulatory guidance and not burden operators unnecessarily.¶¶
Emissions of pre-consumer aluminium and steel scrap should count for embedded emissions when used as a precursor; 'scrap' is defined under Council Regulation (EU) No 333/2011 and importers claiming post-consumer scrap must provide verifiable evidence of origin and classification.¶¶
The Commission should engage with third countries on interoperability of carbon pricing systems and alignment of monitoring, reporting and verification practices, report regularly on progress, and assess carbon pricing mechanisms in Least Developed Countries.¶¶¶
The Commission should continuously monitor circumvention and other anti-circumvention risks, reassess whether the conditions of Article 30(7) are met given prolonged military conflict, and monitor carbon intensity of newly split Combined Nomenclature codes.¶¶¶
The Commission should assess options for progressively extending coverage of indirect emissions to other sectors and a coordinated phase-out of indirect cost compensation, and present a proposal by the end of 2027; default values should be published in time and regularly reviewed.¶¶
The proposed Article 27a on serious and unforeseen circumstances, the recital on removing goods from scope, the recital on carbon credits under Article 6 of the Paris Agreement and the urgency procedure for delegated acts are deleted.¶¶¶

Who is affected

Importers and authorised CBAM declarants, who face additional reporting obligations and must provide evidence on scrap origin and actual emissions.¶¶
Operators in third countries, who may conclude Memoranda of Understanding on market integration and carbon pricing alignment.¶¶¶
Sectors producing steel- and aluminium-intensive downstream products, chemicals, polymers and selected scrap materials, which may be added to the CBAM scope.¶¶¶
Least Developed Countries, whose carbon pricing mechanisms the Commission should assess for compatibility with the CBAM.¶
Member States, which exchange information in the Expert Group on the CBAM and apply indirect cost compensation measures.¶¶

Figures and deadlines

180 products proposed to be added to the current CBAM scope.¶
Delegated acts within three months after a finding of high risk of abusive practices.¶
Proposal on indirect emissions and compensation by the end of 2027.¶
Delegated powers conferred for a period of five years from entry into force of the amending Regulation.¶
Report on delegation of power not later than nine months before the end of the five-year period.¶
Objection period of two months, extendable by two months, for delegated acts.¶
Assessment every two years from the end of the transitional period on export carbon leakage.¶
CBAM expansion proposed as of 1 January 2028.¶

Legal basis: Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union.¶

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