From 1 January 2028, CBAM will expand to cover steel and aluminium-intensive downstream products. A Decarbonisation Fund will be established, with 25% of CBAM certificate revenues remaining with member states in 2026-2027.
The International Trade Committee voted to cap duty-free steel imports at 18.3 million tonnes per year — a 47% reduction — and impose 50% duties on above-quota imports. All Russian and Belarusian steel imports are banned.
EU steel imports hit a bottleneck at the start of 2026 as some first-quarter tariff quotas were depleted within days. CBAM has made new steel imports "extremely difficult" or "nearly impossible."
The EU requires state-aided electric vehicle manufacturers to source 70% of vehicle parts from within the EU. Public procurement in buildings, infrastructure, and transport projects must include at least 25% low-carbon steel.