The European Commission proposed a significant expansion of the Carbon Border Adjustment Mechanism (CBAM) to cover more than 180 new products manufactured from or incorporating steel and aluminium as inputs. This extension would broaden CBAM's application beyond primary materials to downstream products, imposing carbon pricing obligations on producers of finished goods containing covered materials. The proposal aims to strengthen the EU's decarbonization framework by addressing embedded carbon in imported and domestically produced products. Manufacturers and importers of products incorporating steel and aluminium will face new reporting and compliance obligations to document the carbon content of their inputs and pay carbon adjustment charges based on the actual carbon intensity of their supply chains. The expansion reflects the EU's commitment to making producer responsibility mechanisms more comprehensive in addressing industrial decarbonization targets.