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European Union (EU) member states have agreed to expand the bloc’s carbon border tax to cover a wider…
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CaptureBiomassBECCSMineralizationOceanFarmingPolicyCaptureEnergyFuelsStorageUtilizationPolicyMarketsETSVoluntaryComplianceArticle 6InsuranceCarbon AccountingOpinionNewsletterAdvertising Latest Vycarb’s CCUS Solution Ready For Industrial-Scale Piloting After Successful Tech Validation Wood Mackenzie: EU Will Miss 2030 Carbon Storage Target By 35% Climeworks Solutions Celebrates Strong First Half Of 2026 With 14 New CDR Partnerships Verra Ends Suspension Of Kenya Carbon Project Following Independent Review агреена Zurich Insurance Group zurich insurance MarketsPolicyEuropean Council Pushes EU Carbon Tax Expansion Further Than CommissionbyTheodora StankovaJune 17, 20262 minute read Photo by Antoine Schibler on UnsplashTotal0Shares 0 0 0 0 0 European Union (EU) member states have agreed to expand the bloc’s carbon border tax to cover a wider range of manufactured goods, going further than the European Commission’s original proposal in an effort to prevent industrial production from shifting to countries with looser climate rules.The European Council said its position will form the basis for upcoming negotiations with the European Parliament over strengthening the Carbon Border Adjustment Mechanism (CBAM), the tariff-like system that requires importers to pay for the carbon embedded in goods brought into the EU.The mechanism took effect at the start of 2026 after being adopted in 2023, aiming to equalize costs between EU manufacturers paying for emissions under the bloc’s Emissions Trading System (ETS) and foreign producers facing no equivalent charge.CBAM currently applies to carbon-intensive raw materials including aluminum, cement, electricity, and steel.The European Commission proposed in December extending coverage to roughly 180 downstream products with high carbon leakage risk and significant steel or aluminum content, such as machinery, vehicle components, and household appliances.The Council’s position goes beyond that list, adding metal-intensive industrial, construction, and electrical-equipment products including fork lifts, conveyor equipment, and electric motor components.Member states also want the Commission to conduct an annual review of CBAM’s scope, opening the door to further additions over time.On anti-circumvention measures, the Council largely aligned with the Commission’s proposal, supporting tighter reporting requirements to improve traceability and detect misdeclared emissions, along with expanded authority for the Commission to act against evidence of abuse.Relevant: European Commission Updates CBAM Guidance Ahead Of 2026 RolloutThe European Parliament is expected to adopt its own position on the proposed changes in September, setting up three-way negotiations between the Parliament, Council, and Commission.Responding to the Council’s announcement, the European Commission said it “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.”The European Commission, Council, and Parliament form the EU’s main governing triangle, where the Commission is the politically independent executive arm, the Council acts as a symbolic collective head of state that defines the bloc’s overall strategy, and the Parliament is the lawmaking body, sharing legislative powers with the Council of the European Union, a separate institution.Read more: Draft EU CBAM Rules Allow Carbon Credit Deductions, But Cap International Credits At 10% 0 0 0 Carbon Border Adjustment MechanismEU carbon policyEuropean CouncilSubscribe to Our Weekly Newsletter Get the Latest News About the Carbon Industry Subscribe By checking this box, you confirm that you have read and are agreeing to our terms of use regarding the storage of the data submitted through this form. 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