Source: European Parliament
The carbon border adjustment mechanism (CBAM), which entered into force in late 2023, complements the EU’s emissions trading system and aims to address the risk of carbon leakage. Based on the initial experience with its implementation, the Commission proposed simplifications ahead of a wider legislative review at the end of 2025, including looking at extending it to other ETS sectors at risk of carbon leakage and to downstream products. Parliament will consider the proposal in plenary in May, with a view to fixing its position for trilogue negotiations.