Signal EU CBAM Expands to Auto Parts, Machinery, and Home Appliances - 180 Items to be Applied in 2028

Summary

The EU is pursuing an expansion of the Carbon Border Adjustment Mechanism (CBAM) from raw materials such as steel and aluminum to a total of 180 downstream items including auto parts (transmissions, wheels, suspension components, etc.), machinery, and home appliances (refrigerators, washing machines, etc.), targeting implementation in 2028, with passenger cars excluded. The justification cites that 94% of the new items are industrial supply chain products, and that steel and aluminum account for an average of 79% of the products' weight. The European metal distribution association EUROMETAL formally called for applying the same carbon regulations to finished goods in front of the European Commission in Brussels on September 7. The European Parliament's first reading is scheduled for September 14, to be followed by negotiations between Parliament and the Council; an EPRS briefing based on a December 2025 proposal explains the inclusion of anti-circumvention measures. The metal industry supports the expansion, while the automotive industry is seeking a narrower scope and a delay in implementation to 2030.