CBAM: new products included, support to EU producers, flexibilities for non-EU producers (Commission)

The European Commission presented the modifications to the Carbon Border Adjustment Mechanism on 17/12/2025. Based on industry's inputs, it includes a change of scope, specific measures to prevent circumvention, a temporary support for EU producers (the Decarbonisation Fund), and some added flexibilities for non-EU companies. Reagarding the specific case of fertilisers, a lower mark-up (1%) will be applied to importations, in order to mitigate prices increases.

The Carbon Border Adjustment Mechanism is the EU's taxation of carbon. From January 2026 onwards, it will put a price on carbon emissions of imported products and goods used in several industrial sectors: iron, steel, aluminium, cement, electricity, fertilizers, and hydrogen. It ensures fair treatment between EU and non-EU produced materials, as the first ones are subject to an equivalent carbon pricing under the EU's Emissions Trading System.

"The CBAM review report, based on the CBAM transitional period from 2023 to 2025, highlights that CBAM is a key driver in the promotion of decarbonisation in countries outside of the…