Changes from report parliamentary committee draft to plenary report

Change 24

AddedBUDGETARY ASSESSMENT OF THE COMMITTEE ON BUDGETS

Addedfor the Committee on the Environment, Climate and Food Safety

Addedon 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

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

AddedRapporteur for budgetary assessment: Sandra Gómez López

AddedThe Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:

AddedThe Committee on Budgets,

AddedA. whereas the present proposal aims at extending the scope of the Regulation on the Carbon Border Adjustment Mechanism (CBAM), in order to tackle attempts to avoid compliance, and improve and further simplify certain provisions pertaining to electricity imports;

AddedB. whereas on 20 June 2023, the Commission proposed that the proceeds of the CBAM become an EU own resource; whereas Parliament approved that proposal in its position of 9 November 2023; whereas the proposal on new own resources dating from 2021 has still not been approved by the Council; whereas the latest proposal, of 16 July 2025, on the system of own resources, reaffirms that the use of CBAM-based own resources remains an integral element of the Commission’s own resources package for the 2028-2034 multiannual financial framework (MFF) period;

AddedC. whereas the proposal strives to strike a balance between short-term industrial competitiveness and long-term decarbonisation objectives; whereas the macro-economic impacts of an extension of the scope of the Regulation to downstream goods are projected to be fiscally negligible (less than 0.001 % of GDP);

AddedD. whereas the proposal is projected to entail additional revenue in the order of EUR 580 million annually by 2030 and EUR 690 million by 2035;

AddedE. whereas the additional tasks for the Commission linked to the extension of the Regulation’s scope are estimated to require EUR 5 million in commitment appropriations and EUR 1 million in additional payment appropriations in 2027 for operational expenditure under Heading 3, with no additional administrative costs; whereas the total commitment appropriations for the CBAM’s operational and administrative expenditure under the 2028-2034 MFF period are estimated to amount to around EUR 40 million per year;

AddedF. whereas the additional costs linked to the extension of the Regulation’s scope for the 2028-2034 MFF period are not indicated in detail, and nor are they separated from previous estimates of the cost of implementing the CBAM Regulation, as a whole;

AddedG. whereas an interinstitutional agreement was reached in 2020, approving a package of new own resources devised to enable the EU to finance the joint debt issued after the adoption of the NextGenerationEU funds, one of which is the CBAM; whereas this agreement has since been blocked in the Council and has therefore not yet been implemented, with all of the consequences that this entails for the financing of EU budgets, for the repayment of debt accrued as a result of the NextGenerationEU funds and for the preparation of the 2028-2034 MFF, which is limited in revenue due to non-compliance with that agreement, and has therefore prompted new proposals for own resources and levies that would be detrimental to the EU’s competitive capacity;

Added1. Welcomes the fact that, following up on the recommendations of the Commission’s December 2025 report on the application of the CBAM Regulation, the proposal to extend the scope of the CBAM Regulation and improve its functioning coincides with Parliament’s repeated calls to broaden the base for CBAM-based own resources;

Added2. Underlines that the additional revenue would be covered by the Council decision, proposed by the Commission in December 2025, on the system of own resources and would constitute, though modest in volume, genuine, ‘fresh’ and additional revenue, as repeatedly called for in Parliament’s April 2026 interim report on the proposal for the MFF for 2028-2034;

Added3. Strongly encourages potential further extensions of the scope of the CBAM Regulation in the future, such as an extension of its scope to downstream products; stresses that such scope extensions would automatically broaden the base for CBAM-own resources without requiring further changes to the Council Decision on Own Resources; re-affirms, in this context, that any future revision of the scope or definition of the CBAM Regulation’s sectors and products should follow a strict environmental rationale, on the basis of its environmental effectiveness, implications for EU competitiveness in the global markets, administrative feasibility and innovation capacity; concludes, therefore, that decisions regarding the scope of the CBAM Regulation should not be driven primarily by revenue considerations; emphasises, nevertheless, that an expanded scope, as well as higher CO2 prices, would, all else being equal, lead to higher levels of public income in a domain of exclusive EU competence;

Added4. Takes note of the necessary additional operational commitment appropriations, as indicated in the Legislative Financial Statement (LFS), amounting to EUR 5 million above the programmed amount for the CBAM line in 2027; reiterates its long-standing position that new tasks and responsibilities should, in principle, be financed by fresh resources; deplores the limited margins available under Heading 3 and Heading 7 of the MFF for 2027; recalls that any redeployments are subject to confirmation as part of the annual budgetary procedure;

Added5. Takes note of the indicative figures for operational and administrative costs in the LFS, broken down by year, for the 2028-2034 MFF period; considers that these are tangible implications that must be integrated into the budget lines for actions financed under the Commission’s prerogatives under the new Headings 2 and 4, respectively; regrets, in this context, the fact that the LFS does not distinguish, more explicitly, the number of staff members required to cover the tasks related to the extension of the Regulation’s scope to downstream goods from the total number of staff members necessary for the implementation of the CBAM Regulation; assumes, therefore, that the additional tasks are to be covered by existing and already planned numbers of staff members;

Added6. Is aware of the inherent link between the revision of the CBAM Regulation and the introduction of a temporary decarbonisation fund, which is subject to a separate, dedicated budgetary assessment;

Added7. Recalls that the amendments or compromises made in the course of the negotiations must not lead to any provisions contradicting Parliament’s established position on the use of CBAM revenue as an own resource; considers it necessary, therefore, to take part in any further negotiations, including the trilogues, in order to monitor consistency with Parliament’s position on own resources and other pertinent budget-related provisions, and to ensure that the final agreement is compatible with the current MFF and Parliament’s position on the 2028-2034 MFF;

Added8. Acknowledges that any substantive changes in the governance of the implementation and enforcement of the CBAM Regulation, such as those related to penalties for non-compliance, would be beyond the scope of the present initiative; insists, therefore, that in the light of the planned revision of the CBAM Regulation, the proceeds of such penalties must be considered as general revenue for the EU budget;

Added9. Strongly reiterates the crucial need for sustainable, transparent, predictable and resilient revenue for the EU budget that should match the expenditure side, and the strategic priorities and financing needs of the EU; welcomes the Commission’s efforts to identify new own resources and to put forward certain calibrations of traditional own resources; supports the broader ‘basket approach’ proposed by the Commission, and calls on the Council to unblock the stalemate observed since 2020 on a basket of new genuine own resources, in order to reach an amount of own-resources revenue of at least EUR 60 billion per year; recalls Parliament’s position in its April 2026 interim report that the revenue potential of, among others, a digital services levy aimed at major digital platforms, an online gambling and betting services levy, the extension of the scope of the CBAM Regulation and a levy based on a uniform call rate on capital gains from crypto assets should all be explored as possible additional solutions, in order to ensure tax fairness and a revenue level that is commensurate with needs; stresses that expenditure commitments should be aligned with available resources and that long-term budgetary sustainability should remain a guiding principle of the 2028-2034 MFF.