Carbon Border Adjustment Mechanism simplifications

On 10 September, the European Parliament adopted simplifications to the Carbon Border Adjustment Mechanism (CBAM).

✅ Key Points

📌 Purpose: Reduce administrative burden, especially for SMEs and occasional importers.

📌 Context: Part of the “Omnibus I” simplification package (presented on 26 February 2025), covering sustainability and investment legislation.

📌 New de minimis threshold:

  • Imports up to 50 tonnes per importer per year exempted from CBAM.
  • Replaces the earlier exemption for goods of negligible value.
  • Exempts ~90% of importers (mainly SMEs and individuals).
  • ⚠️ Not applicable to hydrogen and electricity.

📌 Climate ambition unchanged:

  • 99% of emissions from CBAM goods (iron, steel, aluminium, cement, fertilisers) still covered.
  • Strengthened anti-abuse provisions to prevent circumvention.

📌 Simplifications for covered imports:

  • Streamlined authorisation process.
  • Simplified emissions calculation rules.
  • Adjusted verification rules.
  • Clearer financial liability for authorised CBAM declarants.

☑️ What’s next:

The Council must now officially endorse the text. It will enter into force three days after publication in the EU Official Journal.

📄 Adopted text: Link.

➡️ Source: CBAM: Parliament adopts simplifications to the EU carbon leakage instrument