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EU Strengthens CBAM Rules

On 17 December 2025, the European Commission presented measures to strengthen the Carbon Border Adjustment Mechanism (CBAM) to prevent circumvention, ahead of its full entry into operation in 2026. The package includes a proposal for a regulation to extend to additional steel- and aluminum-related downstream products, a temporary decarbonisation fund (estimated at €600 million), the CBAM review report assessing the transitional period, and secondary legislation to simplify methodology and calculation criteria.

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