Sittings · Document

DRAFT OPINION (COM(2025)0989 – C100352/2025 – 2025/0419(COD)) 2026-05-07

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 Industry, Research and Energy · Rapporteur: Massimiliano Salini

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The Committee on Industry, Research and Energy gives its opinion on the Commission proposal to extend the Carbon Border Adjustment Mechanism (CBAM) to downstream goods and add anti-circumvention measures. The rapporteur widens the CBAM to downstream steel and aluminium goods by adding many CN codes to Annex I, and broadens the definition of circumvention and abusive practices. The opinion rejects the Commission's plan to treat pre-consumer steel scrap as a CBAM precursor, and instead brings pre- and post-consumer aluminium scrap into the calculation of embedded emissions. It requires default values for high-risk goods and origins for at least a 5 year transition period, and removes the Commission's emergency procedure for excluding goods or countries. It also asks the Commission to define Key Performance Indicators on imports and EU industrial production, and to stop the phase-out of free ETS allowances if CBAM does not hold production volumes in Europe.

Committee position. The rapporteur proposes to amend the Commission proposal by extending the CBAM to downstream goods, broadening anti-circumvention rules, rejecting the treatment of pre-consumer steel scrap as a precursor, and removing emergency exclusion procedures.

Key points

  1. The rapporteur widens the CBAM to downstream goods by adding CN codes to Annex I, including iron and steel articles, fertilisers, heating and cooling equipment, machinery, vehicles and household goods.
  2. The definition of circumvention is broadened, and the Commission's processing times are to be significantly shortened.
  3. The Commission may exclude goods from the CBAM only as a last resort and for a limited period, to maintain legal predictability.
  4. In high-risk sectors such as steel, the use of actual data is not permitted where low-carbon products could be reallocated to circumvent the CBAM.
  5. Mandatory default values are introduced during a transition period for high-risk goods and countries.
  6. The Commission's emergency procedures for removing third countries from the CBAM are rejected; only existing procedures for granting exemptions are kept.
  7. The generic concept of 'abusive practices' is kept but the Commission must apply default values for at-risk goods and origins for at least a 5 year transition period.
  8. Pre-consumer steel scrap is excluded from the list of CBAM precursors, and the Commission's proposal on steel scrap is rejected.
  9. Pre- and post-consumer aluminium scrap are taken into account for embedded emissions, with a single default value based on the most carbon-intensive production route.
  10. The Commission and competent authorities are required to request evidence that imported goods were produced at the declared installation, including 'melt and pour' evidence where relevant.
  11. New anti-circumvention practices are added, including artificially adjusting supply chains to benefit from lower default values or to import slightly processed goods, and absorbing CBAM certificate costs.
  12. The Commission must define measurable Key Performance Indicators on imports and EU industrial production, and stop the phase-out of free ETS allocations if CBAM does not hold production volumes in Europe.

Who is affected

  • Importers and authorised CBAM declarants of steel, aluminium, fertilisers, machinery, vehicles and household goods, who face new reporting and evidence duties.
  • EU steel and aluminium producers, especially the electric arc furnace and stainless steel industries, which the opinion aims to protect from carbon cost distortions.
  • Third countries exporting electricity, steel, aluminium and downstream goods to the EU, which face default values and anti-circumvention checks.
  • Exporters of CBAM-covered goods, who should receive support in the form of free ETS allowances for exports.

Figures and deadlines

  • A period not exceeding 12 months for removing a good from the CBAM scope as a last resort.
  • At least a 5 year transition period for applying default values to high-risk goods and origins.
  • Three months for the Commission to act by delegated acts after finding insufficient evidence.
  • Three months from the collection of findings for the Commission to amend Annex I for anti-circumvention purposes.
  • Article 20(1), (3), (4) and (5) shall apply from 1 February 2027.
  • Points 1 and 6 of Annex II shall apply from 1 January 2026.
  • Article 1(6), point (a), Article 1(8), points (a), (b) and (c), Article 1(24) and point 2 of Annex II shall apply from 1 January 2028.
  • Article 1(21) and (23) shall apply from 1 July 2027.

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