AEGIS Europe supports the strengthening of the EU’s Carbon Border Adjustment Mechanism (CBAM) but argues that the Commission’s proposed Temporary Decarbonisation Fund is only a partial solution to the risk of carbon leakage for EU exporters. We call for a long-term, WTO-compatible export mechanism, stronger anti-circumvention rules, and targeted extensions of CBAM to downstream products to preserve the competitiveness of European industry.