Scrap in scope and new anti-abuse powers: the Council agrees its CBAM position

On 12 June 2026 the Council of the EU agreed its negotiating position on the regulation that will extend and tighten CBAM. Readers of this site will remember the Commission's December 2025 proposal to add around 180 downstream products from 2028. The Council has now had its say, and it has chosen to go further on enforcement.

What the Council agreed

The headline change is scope. Pre-consumer metal scrap, the offcuts and process scrap generated before a product ever reaches a consumer, comes into CBAM. This closes a route by which high-emission material could be reclassified to avoid the charge, and it will matter to anyone trading scrap across the EU border.

The Council also refined the Commission's downstream product list and mandated an annual review, so the list of covered goods will be revisited every year rather than left static. Businesses near the boundary of the scheme should treat scope as a moving line from now on.

On enforcement, the Commission gains powers to act on deceptive practices detected in reporting by companies assessed as high risk. The message to importers is that reported data will be scrutinised, and that gaming the figures carries consequences.

Finally, the Council clarified when goods can be temporarily exempted during a crisis. Exemptions will need clear and objective criteria, including evidence that the EU faces severe price increases for the goods concerned. This is a safety valve for genuine market disruption, drawn narrowly.

What happens next

The European Parliament's environment committee is due to vote on its position in early July, with a plenary vote expected in September. Negotiations between the two institutions follow, and both sides are aiming for agreement before the end of 2026 so the extension can apply from 1 January 2028.

What it means for you

If you make or import machinery, vehicle parts, fabricated metal products or anything else with significant steel or aluminium content, the downstream extension is heading your way with broad political support behind it. The businesses that cope best with CBAM so far are the ones that started collecting supplier emissions data early. The same will be true for the 2028 wave.

CBAM-Assured provides training and MRV support for businesses preparing for the extended scope. Get in touch to discuss where to start