The European Union plans to broaden its carbon border levy — a fee on imports of high-emission goods — to include car parts and washing machines, according to draft proposals from the European Commission set to be published Wednesday.

The proposals also seek to close loopholes that the Commission fears could allow foreign companies to avoid the fee, which is currently in a pilot phase and will begin imposing costs from January.

The EU’s Carbon Border Adjustment Mechanism (CBAM) — the world’s first carbon border tariff — already applies to imported goods such as steel, aluminium, cement, and fertilizers, charging fees based on their CO₂ emissions.

Designed to protect European industries from cheaper imports from countries with weaker climate regulations, the policy has drawn criticism from trading partners including China, India, and South Africa, who argue it unfairly penalizes their economies.