On January 29, 2025, the European Commission published the “Competitiveness Compass”, a document that clearly expresses the EU's ambition to become carbon neutral by 2050 and sets an interim target of reducing carbon emissions by 90% by 2040.

To tackle the issue of carbon leakage, the EU has proposed in the Competitiveness Compass that, during the Carbon Border Adjustment Mechanism (CBAM) review process, it will assess the possibility of expanding the scope of CBAM to include additional sectors and downstream products.

The release of the Competitiveness Compass underscores the EU's commitment to the objectives of the European Green Deal and its climate goals.