The European Commission intends to expand the CO2 border adjustment mechanism to cover 180 products, extending beyond the current scope of steel, aluminum, and cement. The proposed extension will include imports that largely consist of steel and aluminum, such as factory machinery and household appliances like washing machines. This measure aims to strengthen the competitiveness of European producers who must purchase CO2 certificates corresponding to their emissions during production.

Currently, manufacturers outside the EU do not incur these costs, and the CO2 border adjustment is designed to address this discrepancy. The European Parliament and the 27 EU member states are now set to negotiate the proposals. This initiative reflects the EU’s ongoing efforts to align trade policies with environmental goals.