The European Parliament and Council have reached a political agreement on a package of technical changes to the EU’s Carbon Border Adjustment Mechanism (CBAM), aiming to simplify compliance while maintaining strong environmental safeguards.
The key update is the introduction of a cumulative annual threshold of 50 metric tonnes (mt) per importer, which will exempt around 90% of importers—primarily small and medium-sized enterprises (SMEs) and individuals bringing in low volumes of CBAM-regulated goods. Despite this exemption, the revised mechanism will still cover 99% of carbon emissions from key imports, including iron, steel, aluminum, and cement.
Other key simplifications include:
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A more streamlined authorization process for CBAM declarants
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Simplified emissions calculation methods
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Improved financial liability management
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Stronger anti-abuse provisions
These changes are designed to reduce the administrative burden on smaller actors while continuing to prevent carbon leakage and protect EU industries such as cement, steel, aluminum, fertilizer, electricity, and hydrogen.
“We have answered calls from companies to simplify and streamline the process and exempted 90 percent of importers of CBAM goods to facilitate competitiveness and growth for our businesses. As the CBAM will still cover 99 percent of total carbon emissions, we have maintained the EU's environmental ambitions and remain fully committed to a just transition and to achieve climate neutrality by 2050,” said Antonio Decaro, rapporteur of the European Parliament.
The agreement still requires formal endorsement by both the European Parliament and Council. Once adopted, the revised rules will enter into force three days after publication in the EU Official Journal.
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