CBAM: New Commission Proposal to Simplify and Strengthen
The European Commission has adopted a new package of proposals to simplify EU rules, enhance competitiveness, and unlock additional investment capacity. This is an important step towards creating a more favorable business environment that supports the growth, innovation, and job creation of EU companies. By integrating competitiveness and climate goals, we are creating the necessary conditions for EU businesses to thrive, attract investment, and achieve shared objectives such as the European Green Deal.
Omnibus Package and Its Impact on CBAM
The first ‘Omnibus’ packages, adopted on February 26, 2025, bring together extensive simplifications in various legislative areas, including sustainable finance reporting, sustainability due diligence, EU Taxonomy, the Carbon Border Adjustment Mechanism (CBAM), and European investment programs.
Within this framework, the Commission has proposed a series of changes to simplify and enhance CBAM.
Proposed Changes for CBAM
Firstly, the Commission aims to simplify CBAM for small CBAM importers, mainly SMEs and individuals. To achieve this, a CBAM ‘de minimis’ threshold of 50 tonnes has been introduced. This exemption applies to importers who bring in small quantities of CBAM goods, representing only a minor portion of embedded emissions entering the EU from third countries. With this change, approximately 99% of emissions will remain within CBAM’s scope, while around 90% of importers will be exempt.
For importers who remain within the CBAM framework, compliance will be facilitated through measures such as simplifying the authorization process for declarants, emission calculations, and the management of CBAM financial liabilities.
In addition to these simplifications, CBAM will be made more effective by strengthening anti-abuse provisions and developing a joint anti-circumvention strategy in collaboration with national authorities.
Next Steps
Simplification is crucial for reducing the administrative burden on SMEs and occasional importers. The learning period during CBAM’s transitional phase has allowed policy measures to be developed in collaboration with stakeholders. Furthermore, simplification is a prerequisite for reviewing CBAM and making it stronger and more efficient.
Moving forward, a comprehensive review of CBAM will be conducted later this year. This review will assess the potential extension of CBAM to other EU Emissions Trading System (ETS) sectors, downstream goods, and indirect emissions. Additionally, the Commission will explore ways to support exporters of CBAM products who are at risk of carbon leakage. Following these evaluations, a new legislative proposal is expected to be introduced in early 2026.
Leave a Reply