Carbon Border Adjustment Mechanism simplifications

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

โœ… Key Points

๐Ÿ“Œ Purpose: Reduce administrative burden, especially for SMEs and occasional importers.

๐Ÿ“Œ Context: Part of the โ€œOmnibus Iโ€ simplification package (presented on 26 February 2025), covering sustainability and investment legislation.

๐Ÿ“Œ 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).
  • โš ๏ธ Not applicable to hydrogen and electricity.

๐Ÿ“Œ Climate ambition unchanged:

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

๐Ÿ“Œ Simplifications for covered imports:

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

โ˜‘๏ธ Whatโ€™s next:

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

๐Ÿ“„ Adopted text: Link.

โžก๏ธ Source: CBAM: Parliament adopts simplifications to the EU carbon leakage instrument