European Union lawmakers have voted to delete the emergency brake clause from the Carbon Border Adjustment Mechanism (CBAM), the levy that applies CO2 fees to imports of steel, fertilisers, and other goods. Instead of allowing the EU to suspend the fee when import prices jump, they want to use CBAM revenue to compensate industries if the scheme raises costs. The European Council still wants to keep the brake, so the final rule will be settled in negotiations. Lawmakers also approved extending CBAM to aluminium shipments above 5 metric tons, down from the current 50 tons, and to post-consumer aluminium scrap. That closes a loophole where high value, low weight aluminium parts for cars, doors, and solar panels avoided the fee. The changes would also add products like washing machines and car parts. The outcome matters for importers, European producers, and anyone tracking how carbon border policy evolves.
