This step underscores the EU’s commitment to drive forward a clean industrial transition: tackling carbon leakage, while strengthening EU competitiveness, accelerating decarbonisation investment, and supporting Europe’s strategic independence.
Building on the success of the CBAM simplification, the Commission tabled a proposal in December 2025 to strengthen the mechanism’s effectiveness. The proposal extends the scope of CBAM to certain downstream products, strengthens anti-circumvention measures, and adapts rules applicable to electricity, alongside targeted technical changes.
The European Commission welcomes the Council’s rapid progress, which demonstrates strong support for CBAM and a firm commitment to ensuring it remains effective in advancing the EU’s climate objectives and industrial transition.
Next steps
Further substantial discussions will take place in the context of the trialogue, following the Parliament’s examination and formal adoption of its position in a plenary vote expected in September.
Background
CBAM is a key instrument to drive forward our clean industrial transition. By tackling the risk of carbon leakage, it strengthens EU competitiveness, facilitates the roll-out of decarbonisation investment and supports the EU’s strategic independence.
