US EditionEU to strengthen carbon levy on high-emission imports, crack down on attempted evasion
The EU will include more products under the Carbon Border Adjustment Mechanism and tighten rules to prevent evasion, aiming to generate €2.1 billion by 2030, officials said.
- On December 17, 2025, the European Commission published a proposal widening the Carbon Border Adjustment Mechanism to include refrigerators, washing machines and car parts.
- To prevent `carbon leakage`, the proposal ensures a level playing field for European companies subject to the Emissions Trading System and encourages others to price emissions.
- Drafts would expand coverage to downstream products including construction products, power transformers and cables, and farming machinery, while clamping down on under-reporting by imposing default emissions values.
- Commission plans to use 25% of CBAM revenue to help European heavy industries, with a 23% revenue increase generating around half a billion euros by 2030 and about �2.1 billion total by 2030.
- Next, the proposal will move to European Parliament and EU governments, with China, India, Brazil, Russia, and South Africa criticising it as protectionist, while the EU claims WTO compliance.
13 Articles
13 Articles
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EU to strengthen carbon levy on high-emission imports, crack down on attempted evasion
The European Union will expand its carbon border levy - a fee charged on imports of high-emission goods - to cover car parts and washing machines, under European Commission proposals published on Wednesday.
Europe to Bolster Carbon Border Levy Criticized by US and China
The European Union plans to expand an incoming emissions charge on imported goods as part of efforts to strengthen a flagship climate policy that’s aimed at protecting the bloc’s industries during the green shift.
Brussels also plans to crack down on companies that understate their emissions to avoid the fee.
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