European Parliament backs CBAM expansion to fasteners, wire, and springs

The European Parliament has adopted its negotiating position on extending the Carbon Border Adjustment Mechanism (CBAM) to more downstream steel and aluminum goods, including fasteners, wire, and springs. The September 15 plenary vote passed with 464 votes in favor, 50 against, and 159 abstentions. Parliament can now negotiate the final text with the Council.

Broader scope, stricter anti-circumvention rules

The Commission proposed extending CBAM from 2028 to 180 downstream products. Members of the European Parliament backed the plan and asked for an even wider list. They also want a lower threshold for spotting circumvention through minor product changes, and default emissions values based on the true country of origin where a pattern is established. The rules would target arrangements set up solely to avoid CBAM, not ordinary cost-cutting decisions.

Parliament rejected a safeguard that would let products be temporarily removed from CBAM during price shocks, proposing instead to temporarily redirect CBAM revenues from the goods concerned to the affected sectors. It also dropped the option of offsetting CBAM obligations with Article 6 Paris Agreement credits, as the issue is expected to be discussed in the upcoming revision of the EU Emissions Trading System.

Industry: a step forward, but not enough

Eurometal called the vote a step forward but described the scope as incomplete and implementation as too slow, asking for all steel- and aluminum-intensive products to be covered faster.

The extension is not yet law. Until Parliament and the Council agree on an amending regulation and it enters into force, the existing CBAM scope continues to apply.

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