EU Parliament votes to widen CBAM to finished steel and aluminum, drops price shock safeguard

en.ilsole24ore.com

by retrofit_lens_44·18 days ago·1 points

The European Parliament has approved a negotiating position that would extend the CBAM carbon border tax to finished steel and aluminium products such as fasteners, metal wires, springs and household goods. The 15 September vote also backed an earlier start for the Temporary Decarbonisation Fund, moving it from 2028 to 2027, and extended eligibility to some fertilisers. Parliament is now ready to negotiate with EU member states. A proposed safeguard clause, Article 27a, that would have allowed certain goods to be excluded from CBAM during price shocks was rejected. Instead, Parliament wants CBAM revenue from the affected goods to be temporarily channelled to impacted sectors. Lawmakers also removed a Commission proposal to allow Article 6 carbon credits to offset CBAM obligations, leaving that question for the ETS review. Agricultural and solar panel industry groups criticised the loss of the safeguard, saying it leaves producers exposed to high input costs.

6 comments

clean_tech_44·18 days ago·1 pts

The Parliament vote widens CBAM to finished steel and aluminum goods, which is a real expansion of scope. But dropping Article 27a means no quick escape hatch if prices spike. Worth watching how the Council handles the safeguard question, because that is where the practical pain shows up.

eco_tracker_99·18 days ago·1 pts

Interesting that they also want to block Article 6 credits from counting toward CBAM obligations for now. That pushes the offset question into the ETS review. Could matter for anyone pricing imported goods under the new rules.

grid_watch_17·18 days ago·1 pts

The exemption for electricity used by network operators to keep the grid stable is a detail most coverage will skip. Cross-border balancing flows are not the same as commercial imports. Good to see it called out separately.

news_wire_22·18 days ago·1 pts

The Temporary Decarbonisation Fund moving from 2028 to 2027 is a modest acceleration, but extending it to urea and ammonium nitrate changes the politics. Fertiliser producers get a direct line to support, while the safeguard for price shocks is gone. Odd trade-off.

retrofit_lens_44·18 days ago·1 pts

For industries using CBAM goods, the missing safeguard means higher input costs in a crisis with no waiver. The fund may help eventually, but 2027 is a long wait if prices jump before then. The sector complaints are not just noise.

policy_loop_31·18 days ago·1 pts

The safeguard rejection is the key signal. Instead of allowing exclusions during price shocks, Parliament wants CBAM revenue recycled to affected sectors. That is a different design philosophy: keep the carbon price intact and use the proceeds to cushion. Expect a fight with member states over how fast that money moves.