CBAM is heading beyond raw materials. On 12 June 2026 the EU Council (ECOFIN) agreed its position on the Commission's December 2025 proposal to extend the mechanism to downstream goods and tighten it against circumvention. It is not law yet, but the direction is now clear.
~180 downstream products, from 1 January 2028
The extension targets steel- and aluminium-intensive finished goods — machinery, appliances, engines, refrigerators, heat-pump components and the like — that today escape CBAM even though they embed a lot of carbon-heavy metal. Around 180 product groups are in scope, applying from 1 January 2028. The Council went further than the Commission, pushing to roughly double the number of downstream goods covered.
The aim is to close a loophole: with only raw materials covered, importing a finished part made abroad from high-emission steel was cheaper than importing the steel itself.
Anti-circumvention measures
- Pre-consumer steel and aluminium scrap counted in CBAM calculations
- Stricter reporting and traceability requirements
- Closer scrutiny of declared emission intensities
- Stronger powers for the Commission to act on suspected abuse
What it means for importers
If you bring finished or semi-finished steel or aluminium products into the EU, you may be newly in scope from 2028 — worth tracking the final product list as it firms up. For now, the default values and the calculator cover the six sectors currently in force.
What happens next
The file now runs through the ordinary legislative procedure: the European Parliament adopts its own position, then Parliament and Council negotiate a final text before formal adoption. We'll post again once the scope is locked in. Source: European Commission.