EU Proposes 180 More Products Under CBAM

The European Commission has proposed expanding the Carbon Border Adjustment Mechanism to cover approximately 180 additional products, targeting steel- and aluminium-intensive downstream goods. The extension is designed to close a structural loophole: without downstream coverage, emissions can shift along the value chain rather than being genuinely reduced, undermining CBAM's core decarbonisation logic. By pricing embodied carbon at the border for fabricated products, not just raw materials, the mechanism aims to prevent producers from circumventing the levy by processing steel or aluminium outside the EU before re-importing finished goods. The practical consequence is a broader compliance perimeter for non-EU exporters and EU importers alike. Companies trading in downstream metal-intensive goods, machinery components, fasteners, structural parts, will need to track and report embedded emissions that were previously outside scope. Businesses with cross-border steel and aluminium supply chains should begin mapping exposure now, as the proposal advances through the EU legislative process.