Carbon Border Adjustment Mechanism: extension of its scope to downstream goods and anti-circumvention measures

It affects EU importers of CBAM goods, especially steel and aluminium downstream products, electricity importers, and non-EU producers exporting those goods to the EU.

• Adds selected steel and aluminium-intensive downstream goods to CBAM from 2028.
• Requires evidence for actual emissions where misdeclaration or abusive practices are high-risk.
• Includes pre-consumer steel and aluminium scrap as precursors when calculating embedded emissions.
• Revises electricity import emission factors and eases conditions for using actual electricity emissions.

Takes effect

It enters into force on the third day after publication in the Official Journal.

Transitional law

Electricity calculation changes apply from 1 January 2026; downstream scope and precursor-related changes apply from 1 January 2028.

• Regulation (EU) 2023/956 (32023R0956)
  • art. 2: amends scope/exemptions; inserts paragraph 2a, inserts paragraph 7a, replaces paragraphs 8, 11 and 12
  • art. 2a: adds subparagraph on 2027 threshold assessment using import data for extended goods
  • art. 3: adds definition of ‘abusive practices’
  • art. 5(5): replaces point (h) on identification of represented persons
  • art. 6: amends CBAM declaration requirements; replaces provisions and adds paragraphs 6a and 7
  • art. 7: inserts paragraph 2a; amends record-keeping and default-value mark-up rules
  • art. 9: amends carbon price deduction certification and implementing powers
  • art. 10: amends operator registration, disclosure and actual-emissions conditions
  • art. 17: inserts paragraph 5a and replaces paragraph 7 on guarantees
  • art. 18(3): adds requirement to specify verifier procedures in delegated acts
  • art. 19: inserts paragraph 2a on evidence for actual-emissions declarations
  • art. 21: amends CBAM certificate price calculation and publication timing
  • art. 22(2): adds subparagraph on yearly basis for quarterly certificate calculation from 2028
  • art. 23(1): replaces subparagraph on repurchase through the common central platform
  • art. 25: amends customs information exchange; adds material and chemical composition implementing power
  • art. 27(2): adds circumvention practice concerning artificial supply-chain adjustment for lower default values
  • art. 27a: inserts new article on serious and unforeseen circumstances allowing removal of goods from Annex I
  • art. 28: amends delegation of power provisions
  • art. 28a: inserts urgency procedure for delegated acts
  • art. 30(6): replaces second subparagraph on biennial reporting and possible accompanying acts
  • art. Annex I: amends Annex I to extend covered goods and clarify CN-code descriptions
  • art. Annex IV: amends Annex IV on embedded-emissions calculation, including electricity rules
  • art. Annex VI: deletes point 2(g)-(j) and inserts point 2(ka)
  • art. Annex VIII: adds new Annex VIII listing input materials precursors