The European Union is revising its Carbon Border Adjustment Mechanism (CBAM) to move beyond raw materials and cover emissions across entire supply chains. The proposal targets iron, steel, and aluminum based goods to prevent carbon leakage as free ETS allowances phase out. New measures aim to block 'resource shuffling' where cleaner products go to the EU while dirtier ones are sold elsewhere. Importers of high risk goods must provide clear emission data or face default values. Rules on recycled materials, temporary exemptions, and electricity emission calculations are also updated. This shift turns CBAM from a product level policy into a value chain wide system. Global companies will face more pressure to improve transparency and cut emissions across their full production process.
