By the end of 2025, the European Commission may take a significant new step in its fight against carbon leakage. The focus: extending the CBAM (Carbon Border Adjustment Mechanism) to exports of goods manufactured within the European Union.
A proposed measure to protect European producers
Originally designed to impose a carbon cost on imports of certain carbon-intensive products, CBAM aims to ensure that foreign companies do not gain a competitive advantage by bypassing EU environmental standards.
But this mechanism, which currently targets imports, may soon also cover exports. The idea behind this upcoming proposal is to reduce the risk of European production relocating to third countries with weaker climate policies.
Ensuring fairness and preserving competitiveness
The extension of CBAM to exports is primarily intended to support European producers subject to the mechanism. The goal is to guarantee equal treatment between all goods, whether produced inside or outside the European Union.
Such a measure would also help safeguard the competitiveness of European industry in global markets, ensuring that carbon-related costs do not become a barrier to exporting.
Next step: end of 2025
The European Commission is expected to present this proposal by the end of 2025. If adopted, this evolution would mark a major shift in EU climate regulation, with a clear ambition: to tackle carbon leakage in all its forms, including through exports.
