The European Parliament is supporting a broader expansion of the EU Carbon Border Adjustment Mechanism (CBAM) to downstream aluminium and steel products starting from 2028, according to reporting by Mining.com.au. CBAM is designed to place a carbon price on the embedded emissions of certain goods imported into the European Union, broadly aligning the cost of carbon-intensive imports with the costs faced by European producers under the EU Emissions Trading System. The mechanism's central objective is to reduce the risk of carbon leakage, where production shifts to jurisdictions with less stringent climate rules rather than emissions being reduced.
On 15 September 2026, the European Parliament adopted its negotiating position by 464 votes to 50, with 159 abstentions. Parliament's position goes beyond the European Commission's original proposal for 180 additional downstream products, covering a substantially broader list of products. These include aluminium-intensive products such as wire, fasteners, springs, and certain finished goods.
For aluminium specifically, the European Parliament has backed lowering the mass-based exemption threshold from 50 tonnes to 5 tonnes. This would bring smaller volume imports within the potential scope of CBAM and is particularly relevant to aluminium because its high value-to-weight ratio means commercially significant shipments can fall below a 50-tonne threshold. Parliament is also seeking tougher anti-circumvention measures, including provisions that allow emissions default values to reflect the actual country of origin where imports are considered at risk of circumvention.
The EU has been tightening its grip on the global steel supply chain through its melt-and-pour measure, which serves as a transparency and traceability obligation where importers are required to identify the countries where steel was originally melted and poured. According to Shanghai Metals Market (SMM), if adopted, the expansion would increase carbon-reporting and potentially carbon-cost exposure for exporters of downstream aluminium products into the EU, extending CBAM further beyond primary and semi-finished aluminium. For miners, the significance extends beyond compliance considerations.
As Europe prices carbon into imported materials and manufactured goods, the emissions profile of a commodity can become an important factor alongside grade, operating costs, and logistics. This could place greater emphasis on lower-carbon mining and processing routes, while potentially influencing where new projects are being developed and which suppliers remain competitive in European markets. SMM reports that the changes are not final yet, but the Commission's proposed downstream expansion is intended to apply from 1 January 2028.
The mining sector is increasingly affected by CBAM as the mechanism moves beyond the point where minerals and metals first enter the European market, with the carbon intensity of mined commodities, processing methods, and energy sources influencing the competitiveness of materials throughout the supply chain. Source: Mining.com.au, written by Aaliyah Rogan, 29 September 2026.
Source: mining.com.au