The Carbon Border Adjustment Mechanism (CBAM) is receiving a dramatically broader scope. Members of the European Parliament's Committee on the Environment, Climate and Food Safety have supported the official extension of the regulation to downstream products. The new rules introduce reporting obligations for as many as 457 new product categories, taking effect in 2028.
This decision directly affects the manufacturing sector and introduces new administrative requirements for all companies exporting finished components, equipment and complex machinery to the European Union market.
Which products are covered by the new decision?
While the first phase of CBAM targeted only basic raw materials in five categories (iron/steel, aluminium, fertilisers, cement and hydrogen) and electricity production, the expanded list now includes complex equipment, machine parts and finished industrial products.
The list of 457 new products includes key customs tariff codes from the following sectors:
- Engines and drive systems: Diesel engines (8408 20 57), electric motors (8501 52 20) and automotive gearboxes (8708 40 99).
- Industrial machinery and components: Air compressors (8414 80 22), centrifugal pumps (8413 70 21), industrial valves (8481 80 99) and refrigeration equipment (8418 69 00).
- Electrical equipment and cables: Lithium-ion batteries (8507 60 00), insulated electrical cables (8544 49 95) and communications equipment (8517 62 00).
- Precision instruments and parts: Machine tools, rolling mills, ball bearings and precision measuring instruments (9017 30 00).
We will publish and share the complete official list of all customs codes and the final details of the CBAM expansion as soon as the formal adoption procedure in the European institutions is completed.