EU Council Pushes CBAM Expansion Further Than Commission Adding Metal-Intensive Goods

The European Council has agreed to expand the EU's Carbon Border Adjustment Mechanism (CBAM) to cover a wider range of manufactured goods, going beyond the European Commission's original proposal. Member states want to add metal-intensive industrial equipment like forklifts, conveyor systems, and electric motor components to the carbon border tax, which currently covers raw materials such as aluminum, cement, and steel. The Council also supports tighter anti-circumvention measures with improved reporting requirements to trace embedded emissions and detect misdeclared imports. The European Parliament is expected to adopt its position in September, setting up negotiations to finalize the expanded CBAM rules. The move aims to prevent carbon leakage by ensuring foreign producers face costs similar to EU manufacturers under the Emissions Trading System.