The European Commission is considering a significant expansion of the carbon dioxide Emissions Regulation mechanism (CBAM), according to a press release published by Fastmarkets on Wednesday, December 17th.
The documents mention a significant expansion of the scope of CBAM products through the production of finished metal products. If confirmed, these amendments will represent the most significant expansion of the scope of the regulation since its introduction.
Earlier this year, European steel distributors called on the European Commission to extend CBAM and other trade protection instruments to products containing high-risk steel.
According to Fastmarkets, the new sectors will be included from January 1, 2028, subject to the final adoption of the supplement.
The proposal was published on the website of the European Commission's Directorate General for Taxation and Customs Union (DG TAXUD), along with several other documents related to CBAM.
The preliminary benchmarks and default values published on the website have not changed from those indicated in the drafts published last week.
Combined metal products are included in the scope of application
The new applications feature significant additions, especially in the newly introduced category of "combined metal products". This includes metal mesh, fasteners, fittings, pumps, burners, refrigeration, industrial equipment, electric motors and transformers, wires and cables, cranes and conveyors, and even metal furniture and prefabricated buildings.
Several categories of trucks, chassis, gearboxes, wheels, suspension systems, and radiators have also been added.
Market participants noted that these additions represent a major shift in the CBAM architecture, which initially focused on the production of raw materials such as rolled steel and base aluminum. On the contrary, for industrial goods, which often contain mixed metal components, emissions accounting and CBAM declaration at customs will now be required.
"This will affect a much broader part of the value chain than expected," said a European trader. "Importers of machinery, equipment, and components will all become CBAM operators."
Changes related to ferrous metallurgy
The amendment also significantly expanded the range of cast iron and steel, in particular, structures, cast products, containers, pipes, fittings, springs, fasteners and household metal products were offered.
Full list of CN product codes that are covered
