MEPs back a wider CBAM and a fund to help industry decarbonise

On 7 July 2026 the EuropeanParliament's environment committee (ENVI) voted to support extending CBAM toaround 180 downstream products. The committee backed the Commission's Decemberproposal and then sharpened it in three areas that importers should note.

Tighter circumvention rules

MEPs want the rules on"slightly modified" goods tightened so that minor processing cannotlift a product out of scope. They also added provisions aimed at online sales,closing a loophole through which covered goods could reach EU consumers insmall consignments without a CBAM charge. And where patterns of circumventionemerge, the Commission would be able to impose default emission values ratherthan accept reported figures.

Taken together with theCouncil's position, which we covered here in June, the direction is consistent:both institutions want a scheme that is harder to route around.

A decarbonisation fund from 2027

The committee also expanded theproposed Temporary Decarbonisation Fund. Fertiliser producers join the list ofeligible recipients, covering products such as urea and ammonium nitrate, andthe fund would run from 2027 to 2029 rather than starting in 2028. The fund isintended to support EU industry's transition using revenue linked to thescheme, and its final shape will be one of the points settled in negotiations.

The road to a final text

The full Parliament is expectedto adopt its position at the September plenary. Talks between Parliament andCouncil then begin, with both aiming for a deal before the end of the year. Theextension itself is planned for 1 January 2028, which leaves manufacturers andimporters of downstream goods roughly eighteen months to prepare.

Our view

The debate in Brussels is nolonger about whether CBAM grows, but how fast and how tightly it is policed.Businesses in the supply chains for machinery, appliances, constructionequipment and vehicle components should assume they will be in scope and startasking their suppliers for emissions data now. Eighteen months sounds like along time. For a supply chain that has never measured embedded emissions, it isnot.

CBAM-Assured runs trainingcourses for businesses coming into scope for the first time. Contact us to findout more.

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