(AGENPARL) – Wed 17 December 2025 CBAM review: much-needed clarity on exports, enforcement and scope
(Brussels, 17 December 2025)
Reacting to today’s publication of the Commission’s proposal to strengthen the Carbon Border Adjustment Mechanism (CBAM), BusinessEurope Director General Markus J. Beyrer said:
“In its current design, CBAM remains incomplete and requires significant improvements to fully achieve its objectives. Against this backdrop, it is encouraging that today’s proposal addresses three of the most pressing challenges posed by the existing framework.
We welcome the Commission’s efforts to tackle the export challenge. While maintaining full free allocations for the share of production destined for export would have been our preferred approach, we stand ready to engage constructively on the design of the proposed alternative. It is essential that an effective and WTO-compatible export solution is adopted without delay and implemented as a matter of priority to safeguard the international competitiveness of EU industry.
The package also puts forward proposals on anti-circumvention measures and the extension of CBAM downstream. The credibility and effectiveness of CBAM depend on robust enforcement, as well as on closing loopholes and preventing fraudulent practices. Concrete and enforceable measures are needed to effectively deter and address circumvention. Moreover, a carefully calibrated extension of CBAM to certain downstream sectors could help prevent carbon leakage risks from being shifted further along the value chain.
Overall, today’s proposal provides important clarity on how the Commission intends to address these critical issues. We look forward to continued dialogue to ensure that CBAM becomes a workable, effective, and fair instrument that delivers on its climate objectives while preserving the competitiveness of European industry globally and preventing carbon leakage.”
ENDS
About BusinessEurope: As Europe’s largest business organisation and a recognised European social partner, BusinessEurope is a leading advocate for growth and competitiveness at the EU level. Founded in 1958, we speak for enterprises of all sizes in 36 European countries whose 42 national business federations are our direct members.
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