EU Plans Major Expansion of CBAM to Steel and Aluminium Products by 2028
The European Union plans to expand its Carbon Border Adjustment Mechanism (CBAM) to cover around 180 additional steel and aluminium-based products from January 2028. The proposal, put forward by the European Parliament’s environment committee, aims to extend carbon pricing beyond primary materials to downstream goods. This move is part of the EU’s efforts to strengthen its climate framework and prevent carbon leakage.
The expansion is likely to affect exporters, including those from India, as a broader range of metal products could face additional carbon costs. Experts suggest this may increase compliance requirements and create trade challenges for developing nations. At the same time, it could encourage industries to adopt cleaner production methods and improve emissions tracking.