European Parliament negotiators propose replacing the Carbon Border Adjustment Mechanism's emergency brake, Article 27a, with a compensation mechanism that redirects carbon levy revenues to affected sectors. The amendments expand product coverage to 277 categories and lower emissions thresholds from 150 to 50 kilotonnes of CO₂ equivalent. Special rules would help conflict-affected candidate countries like Ukraine and simplify compliance for least developed nations. The environment committee votes on 6 July 2026.