Source: European Parliament
As part of the review of the of the Carbon Border Adjustment Mechanism Regulation (CBAM), the Commission is assessing the need to extend CBAM to downstream products in order to ensure that the CBAM is fully effective in contributing to overall emissions reduction as well as addressing the risk that carbon leakage is pushed further down the value chain.
Any such potential extension needs to be manageable and proportional to the objectives of the mechanism. The relevant analysis, based on the data collected during the transitional period, is ongoing and will be integrated in the 2025 report to the Council and the European Parliament.
This report will already look into the question of export carbon leakage, building on the Commission’s 2024 Carbon Market Report.