News Room - Trade Measure

Posted on 24 Sep 2026

European Parliament backs wider CBAM coverage for downstream steel and aluminum products

The European Parliament adopted its negotiating position on amendments to the EU Carbon Border Adjustment Mechanism (CBAM) on September 15, seeking to extend coverage to more downstream steel and aluminum products, including fasteners, wire, springs, and certain household goods.

Approved by 464 votes to 50, with 159 abstentions, the position proposes broader coverage than the European Commission’s original list of 180 products and would lower the aluminum exemption threshold from 50 tons to 5 tons. The final rules remain subject to negotiations with the EU Council.

Parliament also supports stronger anti-circumvention measures, allowing default emissions values from the actual country of origin to be applied to products suspected of evading CBAM obligations. It seeks to remove a proposed “emergency brake” allowing temporary exemptions during sharp price increases, while the Council favors retaining it.

This difference is expected to be a key issue in negotiations. If adopted, the wider scope could increase compliance costs for suppliers exporting steel, aluminum and downstream products to the EU.

Source:Yieh