BRUSSELS, Dec 17 (KUNA) -- The European Commission announced on Wednesday plans to expand environmental levies on imports to cover dozens of products made from steel and aluminum, such as washing machines and car parts, under the Carbon Border Adjustment Mechanism (CBAM).
The move aims to ensure a level playing field for European industries subject to strict emissions rules and to prevent production from shifting to countries with weaker climate policies.
According to a Commission statement, the amendments will take effect from January 1, 2028, covering 180 steel and aluminum intensive products, including both industrial supply chain goods and some household items, with measures introduced to prevent circumvention and ensure fair application of the carbon levy on imports.
The Commission also launched a temporary support fund to help EU producers cope with carbon costs and protect their competitiveness, funded by approximately 25 percent of CBAM certificate revenues in 2026 and 2027, with the remaining 75 percent coming from the EU's own resources.
The expansion is part of the EU's efforts to promote decarbonisation and achieve climate neutrality by 2050. A Commission report indicated that CBAM has contributed to reducing carbon leakage and promoting global carbon pricing.
The levy is expected to generate annual revenue of 1.4 billion euros, and the proposals will require approval by the European Parliament and EU member states before implementation. (end) arn.gb