In December 2025, the European Commission presented a proposal for a Regulation (“Proposal”) to extend the scope of downstream goods subject to the EU’s Carbon Border Adjustment Mechanism (“CBAM”), and provide flexibility to the Commission to exempt specific products in order address adverse market impacts and to adopt anti-circumvention measures. The Proposal would notably extend the scope of the CBAM requirements beyond the current limited set of categories of basic materials (aluminum, cement, electricity, fertilizers, hydrogen, iron and steel) to a defined group of steel and aluminum downstream products, including specific categories of vehicles and white goods. If adopted, the new CBAM regime would require that importers of these additional downstream goods purchase and declare CBAM certificates as from January 1, 2028 (currently at a price of around EUR 70-80 per tonne of CO2e of embedded emissions in goods).
The Proposal would also introduce other amendments to ensure the overall effectiveness of CBAM, such as, operational adjustments to CBAM declarations, extension of the use of default values, and increased integration of EEA and EFTA countries into CBAM.
Moreover, on December 22, 2025, the EU Official Journal also published several Commission implementing regulations intended to operationalize CBAM just before its definitive regime started to apply on January 1, 2026. This implementing package followed the publication of a Regulation in October 2025 simplifying the CBAM rules, which introduced a de minimis exemption based on a single mass threshold of 50 tons.
This blog post focuses on : (i) key downstream products that the Proposal would include in the CBAM regime, (ii) flexibilities that the Proposal would grant to the Commission, and (iii) the process and usual timing of the legislative process that the Proposal must now follow. Companies marketing downstream products that the Proposal would include within CBAM’s scope should proactively engage with relevant stakeholders within the next months
I. A Proposed Extension of the CBAM scope: Impacts for Transport, Construction and Metals, and White Goods Businesses
The Proposal mainly focuses on combined metal products. If adopted, the Proposal would cover a large part of the downstream value chain of iron, steel, and aluminum, thereby imposing the CBAM certification mandate on imports of a variety of categories of machinery, equipment, vehicles and related products.
For example, the Proposal would include within the scope of the CBAM requirements (see the full list in the Annex below):
- Stranded wires, ropes, and cables, among others, and other cast articles of iron and steel.
- Metal articles and fasteners, such as nails, tacks drawing pins, certain staples, among others.
- Engines, machinery and white goods, such as compression-ignition internal combustion piston engines for the industrial assembly of certain vehicles and tractors, certain combined refrigerator-freezers, cooling towers, laundry and drying machines, among others.
- Industrial, electrical and manufacturing equipment, such as several types of motors, generators, transformers, inductors, converters of metallurgy, molds and ladles, or casting, sawing, sorting, crushing, and many other industrial machines.
- Cables, conductors and electrical components, such as electric wires and cables, electric conductors, or winding wires for electrical purposes which contain steel or aluminum.
- Vehicles and transport equipment, such as a wide variety of motor vehicles for both passengers and the transport of goods, related parts.
- Medical instruments and appliances and furniture containing steel or aluminum, such as apparatuses for nerve stimulation, and general metal furniture, including prefabricated buildings.
The Commission’s Impact Assessment estimates that the proposed expansion of the CBAM’s scope would cover imports into the EU of approximately EUR 1 billion from the U.S., EUR 4 billion from China, EUR 2 billion from the United Kingdom, EUR 1 billion from Turkey, and EUR 2 billion from Japan.
II. Additional Discretion for the European Commission to Adopt Exemptions and Further Safeguards
In a significant expansion of the Commission’s power under CBAM, the Proposal would grant the Commission the authority to adopt delegated acts to temporarily remove categories of goods from the scope of CBAM. The Commission would be empowered to adopt such delegated acts for goods whose inclusion under the CBAM “causes severe harm to the Union internal market due to serious and unforeseen circumstances related to the impact on the prices of goods.” The Commission would be empowered to maintain the exemption “until those serious and unforeseeable circumstances have passed.”
For example, several EU Member States are calling for this provision – upon its approval – to be used to suspend the application of CBAM on specific categories of fertilizers due to high costs. A Commission Q&A suggests that the Commission may apply the exemptions retroactively. Taking the example of fertilizers, this would mean that a CBAM declarant purchasing CBAM certificates to import fertilizer products would recover the associated costs if the application of CBAM to these products is suspended later on. The extent of this retroactive application, however, would have to comply with the principles of legal certainty and legitimate expectations.
The proposal would also empower the Commission to investigate and take action against complex circumventive practices consisting of artificially adjusting the supply chains of goods to benefit from lower default values. It would also empower the Commission to adopt delegated acts to require additional evidence against any actor suspected of adopting abusive practices, where “sufficient evidence” substantiates such concerns.
III. The Ensuing Legislative Procedure and Potential Further Changes
The European Parliament and Council must now consider the Proposal for adoption through the ordinary legislative procedure, during which they may agree on the introduction of amendments.
In the Parliament, the Committee on the Environment is expected to take the lead on the Proposal and to consider the pinions of the Committees on International Trade, Budgets and Industry. The first deadline for the presentation of amendments in the Committee on Environment is likely to be in May. In the Council, the proposal is likely to be discussed mainly under the Presidencies of Cyprus and Ireland (and potentially Lithuania).
Companies that could be affected by the expansion of the CBAM should consider proactively engaging with relevant stakeholders both among the EU institutions and the EU’s trading partners during the next few months.
This blog was written with the support of Pol Revert Loosveldt.
Annex: List of Proposed Additions in CBAM’s Scope
| CN Code | Product |
| 2601 12 00 | Agglomerated iron ores and concentrates, other than roasted iron pyrites |
| 7312 10 | Stranded wire, ropes and cables, of iron or steel. |
| 7314 39 00 | Other grill, netting and fencing, of iron or steel wire, welded at the intersection |
| 7320 20 89 | Other helical springs, of iron or steel |
| 7320 90 90 | Other springs and leaves for springs, of iron or steel |
| 7323 94 00 | Table, kitchen or other household articles, and parts thereof, of iron other than cast iron or steel, enamelled |
| 7323 99 00 | Other table, kitchen or other household articles, and parts thereof |
| 7325 | Other cast articles of iron or steel |
| 7314 31 00 | Other grill, netting and fencing, of iron or steel wire, welded at the intersection, plated or coated with zinc |
| 7314 41 00 | Grill, netting and fencing, of iron or steel wire, not welded at the intersection, plated or coated with zinc |
| 7314 49 00 | Grill, netting and fencing, of iron or steel wire, not welded at the intersection (excl. plated or coated with zinc or coated with plastics) |
| 7317 00 | Nails, tacks, drawing pins, corrugated nails, staples and similar articles of iron or steel |
| ex-7415 10 00 | Nails, tacks, drawing pins, staples and similar articles, of copper or of iron or steel with heads of copper |
| ex-8302 42 00 | Other base metal mountings and fittings suitable for furniture |
| ex-8302 49 00 | Other base metal mountings, fittings and similar articles |
| ex-8309 90 90 | Other stoppers, caps and lids of base metal |
| 8408 20 10 | Compression-ignition internal combustion piston engine for the industrial assembly of: pedestrian-controlled tractors of subheading 8701 10, motor vehicles of heading 8703, motor vehicles of heading 8704 with engines of a cylinder capacity of less than 2.500 cm³ and motor vehicles of heading 8705 |
| 8408 20 51 | Diesel engine for vehicles of chapter 87, ≤ 50 kW |
| 8408 20 55 | Diesel engine for vehicles of chapter 87, > 50 kW ≤ 100 kW |
| 8408 20 57 | Diesel engine for vehicles of chapter 87, > 100 kW ≤ 200 kW |
| 8408 20 99 | Diesel engine for vehicles of chapter 87, > 200 kW |
| 8408 90 65 | Diesel engine, new, > 200 kW ≤ 300 kW |
| 8408 90 67 | Diesel engine, new, > 300 kW ≤ 500 kW |
| 8413 30 | Fuel, lubricating or cooling medium pumps for internal combustion piston engine |
| 8413 70 35 | Other centrifugal pumps, discharge outlet ≤ 15 mm |
| 8416 10 | Furnace burners for liquid fuel |
| 8416 20 | Other furnace burners |
| ex-8416 90 00 | Parts of furnace burners and similar appliances |
| 8418 10 | Combined refrigerator-freezers and similar plant for direct cooling |
| ex-8418 99 90 | Parts of refrigerating or freezing equipment and heat pumps |
| 8419 8910 | Cooling towers and similar plant |
| 8419 89 98 | Other machinery, plant and equipment |
| ex-8419 90 85 | Parts of machinery, plant or laboratory equipment containing steel or aluminium |
| 8420 91 | Cylinders for calendering or other rolling machines |
| ex-8421 23 00 | Oil or petrol-filters for internal combustion engines containing steel or aluminium |
| 8424 30 | Steam or sand blasting machines and similar jet projecting machines |
| ex-8424 82 10 | Agricultural or horticultural watering appliances containing steel or aluminium |
| ex-8424 89 | Other mechanical appliances for projecting, dispersing or spraying liquids or powders |
| ex-8424 90 | Parts of mechanical spraying and projecting appliances |
| 8425 31 00 | Winches and capstans powered by electric motor |
| 8425 39 00 | Other winches and capstans |
| 8425 42 00 | Hydraulic jacks and hoists for raising vehicles |
| 8426 19 00 | Other overhead travelling cranes and mobile lifting frames |
| 8426 99 00 | Ships’ derricks; cranes; mobile lifting frames |
| 8427 90 00 | Other works trucks fitted with lifting or handling equipment, not self-propelled |
| 8428 20 | Pneumatic elevators and conveyors |
| 8428 33 00 | Continuous-action elevators and conveyors, belt type |
| 8428 39 90 | Other continuous-action elevators and conveyors |
| 8428 70 00 | Industrial robots |
| 8428 90 | Other lifting, handling, loading or unloading machinery |
| 8430 61 00 | Tamping or compacting machinery, not self-propelled |
| 8430 69 00 | Other non-self-propelled machinery |
| ex-8431 10 00 | Parts of machinery of heading 8425 |
| ex-8431 20 00 | Parts of machinery of heading 8427 |
| ex-8431 31 00 | Parts of lifts, skip hoists or escalators |
| ex-8431 39 00 | Other parts of machinery of heading 8428 |
| 8431 49 | Other parts of machinery of heading 8426, 8429 or 8430 |
| 8432 80 00 | Other agricultural or forestry machinery for soil preparation |
| 8432 90 00 | Parts of agricultural or forestry machinery |
| 8450 11 | Fully-automatic household washing machines |
| 8450 12 00 | Washing machines with built-in centrifugal drier |
| 8450 19 00 | Other household washing machines ≤ 10 kg |
| 8451 21 00 | Drying machines ≤ 10 kg |
| 8454 10 00 | Converters used in metallurgy |
| 8454 20 00 | Ingot moulds and ladles |
| 8454 30 00 | Casting machines used in metallurgy |
| 8464 10 00 | Sawing machines |
| 8464 90 00 | Other machine tools for working mineral materials or glass |
| 8474 10 00 | Sorting, screening, separating or washing machines for mineral substances |
| 8474 20 00 | Crushing or grinding machines for mineral substances |
| 8474 39 00 | Mixing or kneading machines for mineral substances |
| 8479 10 00 | Machinery for public works or building |
| ex-8480 50 00 | Moulds for glass |
| 8501 32 00 | DC motors and generators > 750 W ≤ 75 kW |
| 8501 53 81 | AC motors, multi-phase, > 75 kW ≤ 375 kW |
| 8504 31 80 | Transformers ≤ 1 kVA |
| 8504 33 00 | Transformers > 16 kVA ≤ 500 kVA |
| ex-8504 50 00 | Inductors |
| 8515 39 90 | Other machines and apparatus for arc welding of metals |
| ex-8544 11 10 | Copper winding wire, lacquered or enamelled |
| ex-8544 11 90 | Copper winding wire, insulated |
| ex-8544 19 00 | Winding wire of other materials |
| ex-8544 49 20 | Insulated conductors ≤ 80 V for telecommunications |
| ex-8544 49 91 | Electric wire and cables ≤ 1,000 V |
| ex-8544 49 93 | Other insulated electric conductors ≤ 80 V |
| ex-8544 49 95 | Insulated electric conductors > 80 V ≤ 1,000 V |
| ex-8544 49 99 | Other insulated electric conductors |
| ex-8544 60 10 | Electric conductors > 1,000 V with copper conductors |
| ex-8544 60 90 | Electric conductors > 1,000 V (other) |
| ex-8704 21 | Motor vehicles ≤ 5 tonnes |
| ex-8704 22 | Motor vehicles > 5 tonnes ≤ 20 tonnes |
| ex-8704 23 10 | Motor vehicles > 20 tonnes |
| ex-8704 31 00 | Motor vehicles with spark-ignition engine ≤ 5 tonnes |
| ex-8704 32 10 | Motor vehicles with spark-ignition engine > 5 tonnes |
| ex-8704 41 00 | Hybrid diesel-electric motor vehicles ≤ 5 tonnes |
| ex-8704 42 00 | Hybrid diesel-electric motor vehicles > 5 ≤ 20 tonnes |
| ex-8704 43 00 | Hybrid diesel-electric motor vehicles > 20 tonnes |
| 8704 60 00 | Electric motor vehicles for transport of goods |
| 8704 90 00 | Other motor vehicles for transport of goods |
| 8706 00 00 | Chassis fitted with engines |
| 8707 10 00 | Bodies for vehicles of heading 8703 |
| 8708 40 00 | Gear boxes and parts thereof |
| 8708 70 00 | Road wheels and parts |
| 8708 80 00 | Suspension systems and parts |
| ex-8708 91 00 | Radiators and parts thereof |
| 8716 80 00 | Other vehicles pushed or drawn by hand |
| 8716 90 90 | Other parts of trailers and semi-trailers |
| 9018 32 10 | Tubular metal needles |
| ex-9018 9 075 | Apparatus for nerve stimulation containing steel or aluminium |
| ex-9018 90 84 | Other medical instruments and appliances containing steel or aluminium |
| ex-9027 10 90 | Other gas or smoke analysis apparatus containing steel or aluminium |
| 9401 79 00 | Seats with metal frames |
| 9403 10 00 | Metal office furniture |
| ex-9403 20 00 | Other metal furniture containing steel or aluminium |
| ex-9406 90 90 | Prefabricated buildings containing steel or aluminium |
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