European Parliament members voted on September 15 to extend the Carbon Border Adjustment Mechanism to finished and semi-finished metal products. The proposal passed by 464 votes to 50, with 159 abstentions, and now moves to negotiations with EU member states. The goal is to stop importers from avoiding CBAM by shipping processed steel or aluminum parts instead of raw materials covered by the original rules. The current CBAM applies carbon costs to imports of steel, aluminum, cement, fertilizers, electricity, and hydrogen. Parliament's extension would add around 180 downstream products with an average steel or aluminum content of 79 percent. A 50 tonne per year exemption threshold per importer is meant to keep about 90 percent of companies out of administrative obligations while still covering roughly 99 percent of related emissions. Importers face a first CBAM declaration deadline of September 30, 2027 for emissions embedded in 2026 imports.
