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Taxation and Customs Union
  • News article
  • 3 July 2025
  • Directorate-General for Taxation and Customs Union
  • 1 min read

CBAM: Commission announces plan to mitigate carbon leakage risk for exporters

The European Commission has announced plans to introduce a new measure to address the risk of carbon leakage for EU-produced goods produced in CBAM sectors. 

The proposal, which is expected to be made by the end of 2025, aims to support producers of goods at risk of such carbon leakage and ensure equal treatment for all goods, whether produced and sold in the EU, imported into the EU or exported. This scheme would be in place for an initially defined period and then will be reviewed after the new 2026 ETS reform is approved. 

The measure is part of the Commission's efforts to prevent carbon-intensive production from being shifted to countries with less stringent climate policies. This move is a crucial step in promoting a sustainable and low-carbon economy.

Carbon Border Adjustment Mechanism

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Publication date
3 July 2025
Author
Directorate-General for Taxation and Customs Union