Scrap in scope and new anti-abuse powers: the Council agrees its CBAM position

On 12 June 2026 the Council ofthe EU agreed its negotiating position on the regulation that will extend andtighten CBAM. Readers of this site will remember the Commission's December 2025proposal to add around 180 downstream products from 2028. The Council has nowhad its say, and it has chosen to go further on enforcement.

What the Council agreed

The headline change is scope.Pre-consumer metal scrap, the offcuts and process scrap generated before aproduct ever reaches a consumer, comes into CBAM. This closes a route by whichhigh-emission material could be reclassified to avoid the charge, and it willmatter to anyone trading scrap across the EU border.

The Council also refined theCommission's downstream product list and mandated an annual review, so the listof covered goods will be revisited every year rather than left static.Businesses near the boundary of the scheme should treat scope as a moving linefrom now on.

On enforcement, the Commissiongains powers to act on deceptive practices detected in reporting by companiesassessed as high risk. The message to importers is that reported data will bescrutinised, and that gaming the figures carries consequences.

Finally, the Council clarifiedwhen goods can be temporarily exempted during a crisis. Exemptions will needclear and objective criteria, including evidence that the EU faces severe priceincreases for the goods concerned. This is a safety valve for genuine marketdisruption, drawn narrowly.

What happens next

The European Parliament'senvironment committee is due to vote on its position in early July, with aplenary vote expected in September. Negotiations between the two institutionsfollow, and both sides are aiming for agreement before the end of 2026 so theextension can apply from 1 January 2028.

What it means for you

If you make or import machinery,vehicle parts, fabricated metal products or anything else with significantsteel or aluminium content, the downstream extension is heading your way withbroad political support behind it. The businesses that cope best with CBAM sofar are the ones that started collecting supplier emissions data early. Thesame will be true for the 2028 wave.

CBAM-Assured provides training and MRV support for businesses preparingfor the extended scope. Get in touch to discuss where to start