Post by Ruth Guerra

#CBAM Updates This weekend, my feed was buzzing with the news that the long-awaited CBAM simplifications have finally been published in the Official Journal of the European Union. Beyond these updates, here are a few key developments to watch closely: 🔹 EU–UK #ETS Alignment Talks Brussels and London are negotiating to align their Emissions Trading Systems (ETS) to avoid overlapping compliance. The draft compromise foresees dynamic alignment, mutual recognition of allowances, and CBAM exemptions for sectors like electricity, industrial heat, and aviation. This alignment is crucial to prevent carbon leakage and ensure fair competition. Meanwhile, industry groups are calling to pause CBAM on EU–UK electricity trade until the deal is finalized, citing concerns over emissions overestimation and higher costs. 🔹 Countdown to Implementation Only 77 days left until #CBAM enters into force — and eight implementing acts are still pending. The definitive emission benchmarks, which will determine CBAM costs, will only be published in January 2026. In the meantime, provisional benchmarks are expected soon, offering companies indicative values for early planning and estimation. 🔹 Global Europe Instrument – Supporting Partners in Transition On 16 October, as part of EU's budget for 2028-2023, the European Commission proposed the Global Europe Instrument, a new external financing tool with a €200 billion budget and a climate and environment spending target of 30%. It is meant to support countries affected by CBAM in decarbonizing their industrial sectors.. https://lnkd.in/eWTPPGyw 🔹 #Trade Measures – Protecting the EU Steel Sector The Commission proposed new trade measures that will limit tariff-free import volumes to 18.3 million tons per year (a 47% cut vs 2024), double out-of-quota duties to 50%, and introduce a Melt and Pour rule to prevent circumvention. The measure — part of the EU Steel and Metals Action Plan — will replace current safeguards expiring in June 2026. https://lnkd.in/eM8UA_ip CBAM marks a major step forward in carbon regulation — but its success depends on how effectively it’s integrated with other policy tools and trade measures. Michael Hayes John McCalla-Leacy Richard Murray Wout Steurs Weronika Żurawska Kenneth Leung Stephan Freismuth Katharina Beck Stéphane Chasseloup Olivier Sorgniard KPMG Avocats KPMG Tax & Legal KPMG