The European Commission is exploring the potential extension of its Carbon Border Adjustment Mechanism (CBAM). The extension would apply to products downstream of the goods subject to the current Mechanism, such as iron and steel, with the goal of reducing the risk of carbon leakage of upstream and downstream products. Part of the Commission’s feasibility study is on the potential administrative burdens and costs that importers of downstream products may face if the CBAM is extended to downstream products.
