The European Parliament’s Committee on Environment, Public Health and Food Safety (ENVI) has approved proposals to expand the Carbon Border Adjustment Mechanism (CBAM) to downstream products and establish temporary financial support for industrial decarbonization.

According to the report, committee members backed the inclusion of additional steel- and aluminum-intensive products in CBAM’s scope to reduce the risk of carbon leakage across value chains. The committee also supported the creation of a temporary mechanism designed to assist industries facing higher costs during the transition to low-carbon production. 

In addition, lawmakers called for stronger anti-circumvention measures and improved monitoring of the system’s implementation. The proposals will form part of the Parliament’s position as discussions continue on the future development of CBAM and related climate policies within the European Union.