EU Council agrees to tighten carbon border adjustment mechanism

The proposal extends the scope of the CBAM to new processed products and reinforces measures to prevent avoidance practices, with a particular impact on sectors such as steel, aluminium and fertilisers.
The Council of the European Union has agreed its position to strengthen the Carbon Border Adjustment Mechanism (CBAM), one of the main EU tools to combat carbon leakage and promote the decarbonisation of industry on a global scale. The agreement will serve as the basis for upcoming negotiations with the European Parliament. The proposal seeks to strengthen the existing system by expanding its scope to new products and incorporating measures aimed at closing potential avenues of circumvention of the regulation. As highlighted by Cyprus’ Finance Minister, Makis Keravnos, the strengthening of the mechanism is a key step towards meeting European climate objectives both inside and outside the Union.

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