COMMISSION PLANS CBAM EXPORT REBATES AND SCOPE EXPANSION
The European Commission has announced its intention to propose new measures to mitigate the risk of carbon leakage for EU exporters under the Carbon Border Adjustment Mechanism (CBAM). The forthcoming proposal, expected by the end of 2025, would introduce a system to refund part of the carbon costs borne by EU producers when exporting goods covered by CBAM, such as steel, aluminium, cement, fertilisers, electricity, and hydrogen. The mechanism would be funded by revenues generated from CBAM itself.
In parallel, the Commission is consulting stakeholders on expanding the CBAM scope to downstream products and addressing circumvention risks. These initiatives form part of a broader strategy to ensure fair competition and environmental integrity, both within the EU and globally. While the current CBAM framework targets imports, the planned proposal aims to address distortions in the internal market and support EU industry's global competitiveness. The proposed compensation mechanism is expected to be modest in scale, with initial funding estimated at €70 million in 2026. The final design will take into account WTO rules and the ongoing reform of the EU Emissions Trading System
CLECAT will continue monitoring these developments closely and consult members on potential implications for the logistics sector and customs intermediaries.