EU member states have agreed to add nearly 400 new product categories to the bloc's carbon border adjustment mechanism (CBAM), targeting downstream goods like forklifts and washing machines that contain significant amounts of steel or aluminium. The expansion, affecting an estimated 160 billion euros in annual imports, aims to close loopholes where importers shift to finished goods to avoid carbon costs. The new rules are set to take effect in 2028. Critics including Mozambique and Russia have raised concerns at the WTO that the policy disproportionately burdens poorer economies and creates trade barriers. France secured exemptions for its overseas territories. The move is part of Brussels' broader effort to shield domestic industry during the green transition while preventing carbon leakage through imports.
