The European Committee of the Regions has formally renounced its right to be consulted on the proposal to extend the EU's Carbon Border Adjustment Mechanism (CBAM) to downstream goods and introduce anti-circumvention measures. In a letter sent to the Council General Secretariat on 20 July 2026, the Committee stated it will not issue an opinion on the file, removing one procedural step from the legislative process.
The proposal (2025/0419 (COD)) amends Regulation (EU) 2023/956, which established the CBAM. The extension to downstream goods would broaden the scope of products covered by the carbon adjustment, while anti-circumvention measures aim to prevent avoidance of the mechanism. The Committee's renunciation means the Council and European Parliament can proceed without awaiting a formal opinion from the EU's assembly of regional and local representatives.
The move streamlines the legislative process but also means that regional and local perspectives, which the Committee typically represents, will not be formally recorded in the legislative file. The proposal remains under consideration by the European Parliament and the Council, with the Parliament's Committee on Environment, Public Health and Food Safety (ENVI) expected to lead the legislative work.
The CBAM, which entered into force in its transitional phase in October 2023, is designed to prevent carbon leakage by applying a carbon price to imports of certain goods. The proposed extension to downstream goods would cover products further along the supply chain, potentially affecting a wider range of industries, including those using steel, aluminium, and other materials already subject to the mechanism. Anti-circumvention measures would target practices such as minor processing or assembly operations designed to avoid CBAM obligations.
Stakeholders likely to be impacted include EU producers of downstream goods, who may face increased administrative burdens and costs from the extended scope, and non-EU exporters, who would need to comply with additional reporting and carbon pricing requirements. EU consumers could see price increases for imported finished products, while environmental NGOs may welcome the broader coverage as a step toward more comprehensive carbon pricing. The removal of the Committee of the Regions' opinion does not alter the substance of the proposal but accelerates the legislative timeline.
Next steps involve the European Parliament adopting its position, followed by negotiations with the Council under the ordinary legislative procedure. The Commission's original proposal was published in early 2026, and the file is expected to advance through the legislative process in the coming months.