Changes from report parliamentary committee draft to plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

▸12 unchanged paragraphs

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards the extension of its scope to downstream goods and anti-circumvention measures

(COM(2025)0989 – C100352/2025 – 2025/0419(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2025)0989),

– having regard to Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100352/2025),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the budgetary assessment by the Committee on Budgets,

– having regard to the opinion of the European Economic and Social Committee of 19 March 2026,

– having regard to the opinion of the Committee of the Regions of [...],

– having regard to Rule 60 of its Rules of Procedure,

– having regard to the opinions of the Committee on International Trade and the Committee on Industry, Research and Energy

Changed– having regard to the report of the Committee on the Environment, Climate and Food Safety (A100000/2026),(A10-0201/2026),

▸4 unchanged paragraphs

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Recital 1: (1) Regulation (EU) 2023/956 of the European Parliament and of the Council3 was initially designed with a limited scope, covering those goods that are most exposed to the risk of carbon leakage and that are most carbon intensive. The scope of that Regulation should be gradually extended to cover products further down the value chain of the goods listed in Annex I to that Regulation, based on quantitative and transparent methodologies.

Change 1

AddedRecital 3: (3) As the CBAM aims to create incentives for the reduction of emissions by operators in third countries, the Union is committed to working with and supporting developing countries, in particular Lower Middle-Income Countries (LMICs) and Least Developed Countries (LDCs) towards the decarbonisation of their manufacturing industries and, through new partnerships, the Union will work on the development of carbon pricing schemes and other decarbonisation measures. This is part of the external dimension of the European Green Deal5 and in line with the Paris Agreement6. The Union should continue to support those countries through dedicated financial mechanisms within the Union budget, and relevant international climate finance instruments, especially LDCs, in order to contribute to ensuring their adaptation to the obligations under this Regulation. The Union should continue to support climate mitigation and adaptation actions in these countries, including in their efforts towards the decarbonisation and transformation of their industries within the ceiling of the multi-annual financial framework and the financial support provided by the Union to international climate finance. This is further reinforced in the EU global climate and energy vision7, which indicates that the EU will engage proactively with partners to ensure better coherence between internal and external EU policies. While the CBAM gradually enters into application, the Union intends to strengthen partnerships and mult…

Recital 8: (8) Electricity flows from third countries resulting from actions that transmission system operators take to ensure the safe and secure operation of their networks and system security, including handling emergencies, balancing services and unscheduled or unintended exchange flows, should not be subject to this Regulation.

Change 2

ChangedRecital 9: (9) Due recognition of the progress made by the relevant third countries towards market coupling of the electricity systems ensures that any time-limited exemptions as foreseen in this Regulation fully align with the strategic objectives of the Union and those third countries’ specific achievements. The efficient use of the existing electricity infrastructure and the integration of electricity markets of third countries into the internal electricity market of the Union is essential to reduce costs for both Member States and the relevant third countries, as well as to ensure security of supply. Such recognition should be put forward by means of a Memorandum of Understanding between the Commission and the third countries that have fully transposed the relevant electricity market acquis or as verified by the Commission.Commission through the European Neighbourhood Policy (ENP), or when the third country has started the phased out approach for its participation, should the agreement provide for such a provision. Where a third country initiates the process of market integration to fully transpose the electricity market acquis, the Commission should be able to assess the possibility of concluding a Memorandum of Understanding with that third country prior to the completion of the full integration of that acquis. The Memorandum of Understanding should set the timeline for the application of the exemption foreseen in Regulation (EU) 2023/956, while considering adherence to relevant market rules and transmission system operator (TSO) institutions in line with Regulation (EU) 2019/943 of the European Parliament and of the Council8 and Commission Regulation (EU) 2015/12229 , an…rules…

Recital 9 a (new): (9a) In already integrated markets with partial alignment to the EU ETS, differences in scope with the CBAM can raise some practical uncertainties. In such cases, a Memorandum of Understanding can also help to clarify the application of the CBAM, ensure consistency, and support administrative cooperation, while contributing to closer coordination of emissions trading systems.

Change 3

ChangedRecital 9 b (new): (9b) ClarifyingIn conditionsorder forto declaringensure that the declaration of actual emissions for electricity imports under the CBAM shouldreflects supportmarket arealities, greaterthe useconditions offor using actual values,values notablyshould forbe electricityfurther generatedclarified. fromWhere renewablerelevant sources.data Inis lightavailable ofand ongoingbased decarbonisationon developmentsverifiable ininformation, neighbouringthose regions,conditions thisshould, wouldwhere ensureappropriate, thatbe aligned with the CBAMmarket istime effectiveunit inused promotingin thirdelectricity countries’markets, effortstake tointo accelerateaccount the decarbonisationconsumption ofmix theirin a manner that reflects actual electricity systems.flows, and, where feasible, consider whether and which technologies are increasing production for export to the Union.

Change 4

RemovedRecital 10 a (new): (10a) During the transitional phase of the CBAM implementation, the Commission assessed the potential inclusion of additional sectors, in particular organic chemicals, polymers, and scrap materials. That assessment indicates that, despite the complexity of value chains and the role of intermediates, the inclusion of certain chemicals and polymers is technically feasible, and that selected scrap materials from sectors such as pulp, paper, and glass could be considered as candidates for future coverage. To ensure a proportionate, effective, and practicable application of the CBAM, a gradual and phased approach should be pursued, starting with products with simpler value chains or established EU ETS benchmarks, and progressively expanding the scope as technical feasibility, data availability, and monitoring capacity allow.

AddedRecital 9 c (new): (9c) Regulation (EU) 2023/956 should take due account of the special characteristics and constraints of the outermost regions of the Union, as referred to in Article 349 TFEU, linked to their remoteness, insularity, small size, topography and climate. In order to avoid disproportionate administrative and economic burdens, while preserving the integrity and environmental objectives of the CBAM, the Commission should be empowered to grant, on a duly reasoned request from the Member State concerned, a temporary and product-specific temporary derogation of the obligations laid down in that Regulation for operators established in outermost regions located more than 3 000 nautical miles from the European continent, having limited access to Union supply chains and which remain heavily dependent on imports from third countries for the supply of certain products covered by that Regulation. Any temporary derogation should be subject to a prior assessment by the Commission on a case-by-case basis, taking into account criteria such as the distance from the European continent, the specific conditions of supply, market size, logistical constraints, the risk of circumvention and the need to ensure a level playing field. Any temporary derogation should also be conditional upon the submission by the Member State concerned of a binding transition plan setting out a clear pathway towards progressive compliance with the objectives of that Regulation. That plan should establish a phased timetable…

RemovedRecital 11 a (new): (11a) While the existing enforcement framework under Regulation (EU) 2023/956 addresses a range of avoidance risks, including the misclassification of goods, under-declaration of quantities, failure to submit the CBAM declarations, and the misapplication of de minimis thresholds, additional provisions are needed to effectively address the risks of abusive practices. Such provisions are necessary to prevent distortions of competition and ensure a level playing field.

AddedRecital 10 a (new): (10a) During the transitional phase of the CBAM implementation, the Commission assessed the potential inclusion of additional sectors and scrap materials. To ensure a proportionate, effective and practicable application of the CBAM, a gradual and phased approach should be pursued, starting with products with simpler value chains or established EU ETS benchmarks, and progressively expanding the scope as technical feasibility, data availability, and monitoring capacity allow.

AddedRecital 11 a (new): (11a) While the existing enforcement framework under Regulation (EU) 2023/956 addresses a range of avoidance risks, including the misclassification of goods, under-declaration of quantities, failure to submit the CBAM declarations, and the misapplication of de minimis thresholds, additional provisions are needed to effectively address the risks of abusive practices, prevent distortions of competition and ensure a level playing field.

AddedRecital 12 a (new): (12a) Abusive practices can also occur in case of resource shuffling. Those practices can include, but are not limited to, situations whereby third countries or operators in these countries adapt to the CBAM by dedicating a limited number of installations to exports to the Union internal market, with or without dedicated investments in decarbonisation. Another possible relevant factor in assessing the high risk of abusive practices in the case of resource shuffling is the fact that these exports are not part of a country-wide effort to reduce emissions.

Recital 13: (13) In order to ensure the effective implementation and enforcement of Regulation (EU) 2023/956, the Commission should monitor the impact of the CBAM on the Union internal market with a view to assessing the risk of abusive practices undermining the effectiveness of the CBAM and the potential impact on the Union internal market, including through an analysis of customs import declarations and CBAM declarations or on the basis of any relevant source of information, including from Member States through exchanges in the Expert Group on the CBAM or other relevant exchanges. The identification of such practices should be based on transparent and objective criteria, trends in import volumes, the level and consistency of declared emissions from installations in third countries, economic incentives for operators to engage in abusive practices and the degree of heterogeneity in emission intensities of specific products.

Change 5

RemovedRecital 14: (14) To enable a swift reaction in the case of evidence pointing towards a high risk of abusive practices, the Commission should be empowered to adopt delegated acts to lay down, for the use of actual emissions for a combination of goods and origins, the information to be declared as well as the evidence demonstrating that such abusive practices have not materialised. Where the Commission finds sufficient evidence pointing towards a high risk of abusive practices, the Commission should be required to act by way of delegated acts within three months after the finding. The measures that the Commission should be able to adopt to define additional reporting obligations for those goods and origins identified for a high risk of abusive practices, should be designed in a proportionate manner, time-limited with the possibility of extension based on regular assessments, supported by regulatory guidance and they should not place unnecessary burden on operators and importers.

AddedRecital 13 a (new): (13a) The Commission should regularly assess the impact of the CBAM on the competitiveness of European energy industries and those exposed to international trade.

RemovedRecital 20: (20) With a view to strengthening the effectiveness of the CBAM to address the risk of carbon leakage of goods, emissions of pre-consumer aluminium scrap and pre-consumer steel scrap should be taken into account for the calculation of embedded emissions of goods. For the purpose of Regulation (EU) 2023/956, ‘scrap’ is defined in accordance with Council Regulation (EU) No 333/20111a, and is not considered waste under Directive 2008/98/EC of the European Parliament and of the Council1b. Since pre-consumer scrap is a co-product generated unintentionally in the production process of metal goods and immediately reusable in a production process, it is not considered at risk of carbon leakage in its own right. Therefore, the emissions of pre-consumer aluminium scrap and pre-consumer steel scrap should only be taken into account when used as a precursor for goods listed in Annex I of this Regulation. The Commission should ensure that the monitoring, reporting and verification of emissions embedded in pre-consumer scrap used as input material (precursor) is not circumvented, including by misreporting pre-consumer scrap as post-consumer scrap to lower the determination of embedded emissions. Where materials are claimed to constitute post-consumer scrap, the importer should be required to provide sufficient, verifiable evidence demonstrating the origin and classification of such materials. / 1a Council Regulation (EU) No 333/2011 of 31 March 2011 establishing criteria determining when c…

AddedRecital 14: (14) To effectively address abusive practices, country-level default values should be applied systematically and ex ante to combinations of countries and goods defined as being at high risk of abusive practices, notably resource shuffling. To identify the combinations of goods and countries at high risk of abusive practices, the Commission should evaluate at least the following indicators: a higher heterogeneity of emission intensities, the ability to circumvent measures, the third country’s climate ambition and the risks of voluntary public intervention to re-allocate production. Operators and importers should retain the possibility to use actual values when they fulfil previously defined set of criteria, that confirm that they do not engage in abusive practices. The evidence to be provided should be designed in a proportionate manner and should not place unnecessary burden on operators and importers.

RemovedRecital 20 a (new): (20a) The Commission should actively engage with third countries to foster interoperability of carbon pricing systems and to align monitoring, reporting, and verification (MRV) practices. Such engagement should aim at the development of common principles and the mutual recognition of comparable carbon pricing systems. The Commission should report regularly on the progress and outcomes of those efforts.

AddedRecital 14 a (new): (14a) With a view to ensuring that operators in third countries are not subject to the application of default values for longer than necessary where abusive practices have ceased, the continued use of default values should be subject to regular assessment. In particular, the Commission should regularly assess, at least on an annual basis, whether the conditions justifying the application of default values continue to be met, by monitoring the carbon cost exposure applicable in the country to which those default values apply.

RemovedRecital 20 b (new): (20b) Considering the potential role of carbon pricing mechanisms in Least Developed Countries (LDCs), the Commission should further assess, in the context of implementing Regulation (EU) 2023/956, the conditions under which such mechanisms could support the application of Regulation (EU) 2023/956, ensuring that any such approach is underpinned by robust data, environmental integrity, and a thorough evaluation of potential risks.

AddedRecital 18 a (new): (18a) The monitoring, verification and reporting obligations provided for in Regulation (EU) 2023/956 should be implemented in a proportionate manner and taking into account the size, resources and administrative capacity of undertakings, in particular small and medium-sized enterprises, while avoiding unnecessary administrative burdens.

AddedRecital 19: (19) Emissions from the production of pre-consumer aluminium scrap in the Union are subject to a carbon price since, under the EU ETS, emissions are measured at installation level. Since pre-consumer aluminium scrap under Regulation (EU) 2023/956 are assigned zero-emissions, and since a comparable circumvention risk may arise for imported goods using post-consumer aluminium scrap where its declared use artificially lowers embedded emissions or avoids an equivalent carbon price, imported goods using such scrap as input material are subject to a lower carbon price compared to goods produced in the Union, thus weakening the effectiveness of the CBAM in addressing the risk of carbon leakage of goods listed in Annex I.

AddedRecital 20: (20) With a view to strengthening the effectiveness of the CBAM to address the risk of carbon leakage of goods, emissions of pre-consumer aluminium scrap should be taken into account for the calculation of embedded emissions of goods. Concerning pre-consumer steel scrap, emissions should be reported but not be taken into account for the calculation of embedded emissions of goods. For the purpose of Regulation (EU) 2023/956, ‘scrap’ is defined in accordance with Council Regulation (EU) No 333/20111a, and is not considered waste under Directive 2008/98/EC of the European Parliament and of the Council1b. Since pre-consumer scrap is a co-product generated unintentionally in the production process of metal goods and immediately reusable in a production process, it is not considered at risk of carbon leakage in its own right. Therefore, the emissions of pre-consumer aluminium scrap and pre-consumer steel aluminium scrap should only be taken into account when used as a precursor for goods listed in Annex I of this Regulation. The Commission should ensure that the monitoring, reporting and verification of emissions embedded in pre-consumer scrap used as input material (precursor) is not circumvented, including by misreporting pre-consumer scrap as post-consumer scrap to lower the determination of embedded emissions. Where materials are claimed to constitute post-consumer scrap, the importer should be required to provide sufficient, verifiable evidence demonstrating the origin and cla…

AddedRecital 20 a (new): (20a) Cooperation and active engagement with third countries are essential to support the effective implementation of Regulation (EU) 2023/956, promote industrial decarbonisation, and foster the interoperability of carbon pricing systems and monitoring, reporting, and verification (MRV) practices. The Commission should report regularly on progress made and aim at building common principles, improving transparency, and achieving the mutual recognition of comparable systems. Furthermore, cooperation measures should support partner countries, in particular developing countries and Least Developed Countries (LDCs), in complying with CBAM requirements. In designing these measures, the Commission should take into account local capacity constraints.

Recital 21: deleted

Change 6

AddedRecital 32: (32) For certain goods, such as the clinker content of cement, the nitrogen content of fertilisers or the alloying elements of steel, the material and chemical compositions of the good is an important determining factor of the embedded emissions. To address the risk of misdeclaration of the embedded emissions determined on the basis of actual emissions for certain goods that are subject to a higher heterogeneity of emission intensities, the Commission should be empowered to adopt implementing acts to identify the material and chemical compositions of a good in the customs declaration, rules for laboratory sampling procedures to be carried out by national custom authorities.

Recital 36: (36) To prevent practices which could undermine the achievement of the objectives of the CBAM, the Commission should continuously monitor at Union level practices of circumvention consisting of artificially adjusting the supply chain of goods to avoid the obligations laid down in Regulation (EU) 2023/956. Furthermore, the Commission should continue to assess other anti-circumvention risks not yet addressed in Regulation (EU) 2023/956, and, where necessary, review and address such risks, in order to ensure a swift and effective response.

Change 7

ChangedRecital 36 a (new): (36a) The exceptional and unforeseeable circumstances resulting from prolonged military conflict, and their severe impact on the economic and industrial infrastructure of affected regions, should be considered. In light of the evolving nature of thethat conflict and its potential economic consequences, the Commission should regularly reassessassess whether the conditions for the application of Article 30(7) of Regulation (EU) 2023/956 are fulfilled, and, where appropriate, consider submitting a report accompanied by a legislative proposal providing for provisional measures. In that context, particular attention should be paid to the capacity of operators in affected regions to comply with the CBAM requirements, as well as to the broader objective of supporting economic resilience and decarbonisation.

Recital 36 b (new): (36b) The Commission should continuously monitor the carbon intensity of products falling under newly split Combined Nomenclature (CN) codes that originate from CN codes listed in Annexes I and VIII to Regulation (EU) 2023/956. The Commission, in the context of upcoming reviews, should assess, on an ongoing basis, the possibility of including such new codes within the scope of Annexes I and VIII to that Regulation.

Recital 37: deleted

Change 8

RemovedRecital 45 a (new): (45a) To ensure a robust and coherent Union carbon pricing framework, strengthen decarbonisation incentives, and contribute to achieving a climate-neutral Union by 2050, the CBAM should progressively and coherently extend the coverage of indirect emissions, which are already included for fertilisers and cement, to other sectors. Given the current dispersion in the use of indirect cost compensation across Member States, which risks undermining the uniform application of carbon pricing, the Commission should assess the technical and policy options, including the gradual phase-in of indirect emissions across sectors and a coordinated phase-out of compensation measures for indirect costs, and present a proposal by the end of 2027.

AddedRecital 40 a (new): (40a) As the extension of the CBAM to downstream products covers goods intended for final consumers, there is a risk of distortion of competition between economic operators established in the Union importing consumer goods subject to the CBAM and online platforms facilitating distance sales of the same goods from third countries, which would not be subject to equivalent obligations. This unlevel playing field creates a loophole that is liable to undermine both fair competition and the environmental integrity of the mechanism. Since online platforms are thereby already designated as importers for distance sales under the reformed Union Customs Code, whether acting in their own name or through an appointed representative assuming that status, it is appropriate to provide that such importers for distance sales, or their appointed representatives where applicable, equally assume the status of authorised CBAM declarant. They should be responsible, in that capacity, for declaring the totality of aggregated imports of CBAM goods facilitated over the course of a year and for surrendering the corresponding CBAM certificates. In such a case, the importer is therefore the importer for distance sales, and not the final consumer.

AddedRecital 45 a (new): (45a) Given the current dispersion in the use of indirect cost compensation across Member States, which risks undermining the uniform application of carbon pricing, the Commission should assess the technical and policy options.

Recital 47 a (new): (47a) The Commission should publish the default values referred to in Regulation (EU) 2023/956 in a timely manner before their application. Those default values should be regularly reviewed and, where appropriate, updated on the basis of the most recent reliable and publicly available data and in accordance with transparent and robust methodologies.

Recital 50: deleted

Change 9

AddedRecital 50 a (new): (50a) The implications of Regulation (EU) 2023/956 for the Union budget have been assessed+ pursuant to Article 310(4) of the Treaty on the Functioning of the European Union. Sufficient financial and human resources should be provided for its implementation, while considering the impact of the financing on other Union programmes or policies and ensuring its compatibility with the multiannual financial framework, the system of own resources and the corresponding interinstitutional agreement, as well as with the budgetary principles laid down in Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council. / + Pro memoria: Budgetary assessment of the European Parliament’s Committee on Budgets of 23 June 2026 on the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards the extension of its scope to downstream goods and anti-circumvention measures (COM(2025)0989). / [1] Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj).

Regulation (EU) 2023/956

Change 10

RemovedArticle 1 – paragraph 1 – point 1 – point c, Article 2 – paragraph 7a – subparagraph 2: The Memorandum of Understanding referred to in the first subparagraph shall set the timeline for the application of the exemption foreseen in Article 2(7) and the timeline for the implementation of a carbon pricing instrument equivalent to the EU ETS, insofar as electricity generation is concerned. Where a third country initiates the process of market integration to fully transpose the electricity market acquis, the Commission may assess the possibility of concluding a Memorandum of Understanding with that third country prior to the completion of the full integration of that acquis.

AddedArticle 1 – paragraph 1 – point 1 – point a a (new), Article 2 – paragraph 3 a – point b a (new): (aa) in paragraph 3a, the following point is added: / '(ba) electricity flows originating from third countries, resulting from actions undertaken by transmission system operators to ensure the secure and stable operation of their networks, including unscheduled or unintended exchange flows, use of balancing services and handling emergencies.';

Regulation (EU) 2023/956

Change 11

RemovedArticle 1 – paragraph 1 – point 1 – point e, Article 2 – paragraph 11: 11. The Commission is empowered to adopt delegated acts in accordance with Article 28 in order to amend the lists of third countries or territories listed in point 1 or 2 of Annex III by adding or removing a third country or territory, depending on whether the conditions set out in paragraph 6, 7 or 9 of this Article are fulfilled in respect of that third country or territory, or as a consequence of the incorporation of the CBAM into the EEA Agreement.

AddedArticle 1 – paragraph 1 – point 1 – point c, Article 2 – paragraph 7 a – subparagraph 2: The Memorandum of Understanding referred to in the first subparagraph shall set the timeline for the application of the exemption foreseen in Article 2(7), taking into account the target date for accession and aligning with the Union’s enlargement policy towards the relevant third country, and the timeline for the implementation of a carbon pricing instrument equivalent to the EU ETS, insofar as electricity generation is concerned. Where a third country initiates the process of market integration to fully transpose the electricity market acquis, the Commission may assess the possibility of concluding a Memorandum of Understanding with that third country prior to the completion of the full integration of that acquis;

Regulation (EU) 2023/956