European Union Considering Expansion Of Carbon Border Adjustment Mechanism
The European Commission has asked U.S. government, specifically the Office of the U.S. Trade Representative (USTR), for stakeholder input into a review the European Union is undertaking on the potential expansion of its Carbon Border Adjustment Mechanism (CBAM). The USTR passed on the request to stakeholders in the United States, including the Metals Service Center Institute.
The expansion would extend the CBAM to cover additional sectors. (Currently, CBAM covers cement, electricity, fertilizers, iron and steel, aluminum, hydrogen, and some precursors and downstream products made from certain CBAM products.)
The study aims to assess the feasibility of extending CBAM’s scope:
- Vertically, to include precursor goods in the value chain of CBAM-covered products;
- Horizontally, to consider sectors currently outside the CBAM framework; and
- Transport emissions, evaluating the potential inclusion of transport-related emissions associated with CBAM goods.
To gain access to the survey and receive the link, interested parties have been asked to contact Technopolis Group directly (yari.borbon@technopolisgroup.com and anabelle.schatten@technoplisgroup.com). The survey will remain open until May 5, 2025. Read more about CBAM at this link.