MEPs say yes to extending the carbon tax at the border to more products

The European Parliament’s Committee on the Environment, Climate and Food Safety has endorsed changes to the Carbon Border Adjustment Mechanism (CBAM) to expand its scope, strengthen controls against circumvention and bring forward to 2027 the launch of a temporary decarbonisation fund for European industry. Initially, the sectors subject to CBAM are: cement, iron and steel, aluminium, fertilisers, hydrogen and electricity.

The committee’s position, approved by 56 votes in favour, 11 against and 12 abstentions, supports extending the mechanism to a long list of processed products derived from steel and aluminium, such as screws, wires, springs or household items, provided that their inclusion is based on “transparent and quantifiable” methodologies. An exception is also introduced for electricity flows from third countries used by operators to ensure the stability of electricity grids.

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