The European Commission proposes strengthening the Carbon Border Adjustment Mechanism through downstream expansion covering approximately 180 steel & aluminum-intensive products from January 2026, averaging 79% metal content including machinery & industrial equipment. Enhanced anti-circumvention measures include pre-consumer scrap inclusion, stricter reporting requirements & Commission authority to apply default values when emission data appears unreliable. A Temporary Decarbonisation Fund would partially reimburse European Union producers' carbon costs in third-country markets, financed by 25% of mechanism revenues, though the European Steel Association warns proposed measures remain insufficient to comprehensively prevent carbon & jobs leakage.