In the context of the transition to the definitive CBAM regime as from 1 January 2026, the European Commission adopted, in December 2025, a package of implementing and delegated acts, together with a proposal to amend Regulation (EU) 2023/956 in order to extend the scope of CBAM to certain downstream products and to introduce additional anti-circumvention measures.

Adoption of secondary legislation to operationalise CBAM

The Commission adopted a package comprising eight implementing acts and one delegated act, specifying the technical, procedural and enforcement framework applicable during the definitive CBAM phase. These measures address, in particular, the calculation of embedded emissions, verification and accreditation requirements, the authorisation of CBAM declarants, the functioning of the CBAM Registry, customs communication and the pricing of CBAM certificates.

With respect to the calculation of embedded emissions, Commission Implementing Regulation (EU) 2025/2547 sets out detailed monitoring and attribution rules applicable to third-country producers, including requirements to calculate emissions at installation level and to attribute emissions to relevant production processes. The methodology is closely aligned with the EU Emissions Trading System (EU ETS) monitoring framework and allows for a combination of actual values and default values at precursor level, offering a degree of flexibility where full data is not available.

The Commission Implementing Regulation (EU) 2025/2621 establishes default emission values by Combined Nomenclature code and country of origin for the definitive phase. For goods other than electricity, these default values include progressively introduced mark-ups to account for potential divergences between individual installations and national averages. The default values are subject to periodic review and must be reassessed no later than December 2027.

The Commission Implementing Regulation (EU) 2025/2620 specifies how the number of CBAM certificates to be surrendered is to be adjusted to reflect free allocation under the EU ETS. The act provides for adjustments based on actual data or default CBAM benchmarks and introduces a sector-specific benchmark for natural gas-based direct-reduced iron (DRI) to address identified risks to the environmental integrity of CBAM during the initial compliance years.

As regards CBAM certificate pricing, the Commission Implementing Regulation (EU) 2025/2548 provides that, from 2027 onwards, the price of CBAM certificates will mirror the weekly average price of EU ETS allowances. For goods imported in 2026, the certificate price will be based on the quarterly average price of EU ETS allowances, with the Commission publishing the applicable price directly in the CBAM Registry accounts of authorised declarants.

Verification and accreditation requirements are governed by two separate legal instruments.

• Commission Implementing Regulation (EU) 2025/2546 that lays down the rules applicable to the verification of embedded emissions, including verification principles, procedures and the modalities of on-site and remote verification. It provides that, as a general rule, verifiers must carry out an on-site visit in the first verification year. In subsequent years, verification activities may partially rely on remote means, subject to conditions and without prejudice to the requirement that a physical on-site visit be conducted at least once every two years. The implementing act further requires verification to follow a risk-based approach and to provide reasonable assurance that reported embedded emissions are free from material misstatement.
• Commission Delegated Regulation (EU) 2025/2551 that establishes the framework for the accreditation of verifiers and specifies the conditions under which verification activities may be performed. In particular, it clarifies that verifiers may be established in third countries, provided that they obtain accreditation from an accreditation body designated in accordance with Regulation (EC) No 765/2008.

Further, Commission Implementing Regulation (EU) 2025/2549 sets out the conditions and procedures for authorised CBAM declarant status, reflecting amendments introduced by Regulation (EU) 2025/2083 (‘the CBAM Simplification Regulation’) of October 2025, including the possibility for applicants who submitted an application by 31 March 2026 to continue importing CBAM goods on a provisional basis where the competent authority has not yet adopted a decision, thereby avoiding interruptions of imports at the border. Additional Implementing Regulation (EU) 2025/2550 regulates the definitive CBAM Registry and define the scope and modalities of information exchange with customs authorities, with a view to ensuring secure and standardised data flows between national authorities and the Commission.

Taken together, these acts complete the operational architecture required for CBAM to function as a fully enforceable border carbon pricing mechanism as of 2026.

Proposal to extend CBAM to downstream goods and strengthen anti-circumvention rules

In parallel, the Commission adopted a proposal to amend Regulation (EU) 2023/956 (with Annex), building on the EU’s Steel and Metals Action Plan of March 2025, which identified risks of carbon leakage shifting further downstream in the value chain and of circumvention during the CBAM transitional phase.

The proposal would extend CBAM to approximately 180 additional downstream products, primarily in the steel and aluminium value chains, including certain iron and steel articles, fabricated metal products, machinery and equipment, vehicles and vehicle parts, selected medical instruments, and metal furniture and prefabricated buildings. To provide predictability, the proposed extension would apply from 1 January 2028.

The proposal also strengthens the anti-circumvention framework, notably by treating pre-consumer aluminium and steel scrap as CBAM precursors and by empowering the Commission and competent authorities to require additional evidence where there is a risk of misdeclaration of actual embedded emissions. In situations of sufficiently evidenced high-risk abusive practices, the Commission would be able to require the use of default values unless enhanced supporting documentation is provided.

Finally, the proposal introduces targeted changes to the rules for attributing emissions to imported electricity, including adjustments to default values and more flexible conditions for using actual emissions, with the aim of supporting the decarbonisation of electricity imports.

The proposal is subject to negotiations between the European Parliament and the Council and, if adopted, would constitute the second amendment to the CBAM Regulation, following the CBAM Simplification Regulation.