ENVI Committee: MEPs back CBAM extension and adopt position on the Temporary Decarbonisation Fund

The European Parliament's Environment (ENVI) Committee has endorsed the Commission's proposal to extend the EU's Carbon Border Adjustment Mechanism (CBAM) to cover downstream goods and establish a fund to support industry's low-carbon transition. The committee adopted its position on July 6 by 56 votes in favor, 11 against, and 12 abstentions.

Members of the European Parliament (MEPs) aligned with the European Commission's proposal to broaden CBAM's scope beyond basic materials to encompass a wide range of downstream products, including finished steel and aluminum goods such as fasteners, wire, springs, and household items. However, they emphasized that this expansion must be "based on transparent, quantitative methodologies."
Additionally, the committee included an exemption for…