The European Commission wants to extend CBAM to finished products

The European Commission wants to extend the border carbon adjustment mechanism to products downstream of the steel and aluminium value chains in order to prevent the mechanism from being abused, with companies being able to relocate the production of finished products outside Europe in the absence of an extension. Under the current rules, from 2026 onwards, companies importing basic aluminium, cement, fertilisers, hydrogen, iron or steel will acquire CBAM certificates, the price of which will be linked to the price of carbon.