As reported by the Federal Ministry for the Environment and the Federal Environment Agency in a joint press release, the European Union is simplifying the Carbon Border Adjustment Mechanism (CBAM) to ease the burden on smaller companies without weakening the climate impact of the instrument.
From 1 January 2026, a mass-based threshold of 50 tonnes will apply. Importers who import 50 tonnes or more of the affected goods – such as iron, steel, aluminium, cement and fertilisers – per year will be subject to the core CBAM obligations. Hydrogen and electricity are exempt from this threshold.
Further simplifications are included in Amendment Regulation (EU) 2025/2083.
This amendment affects around 90 per cent of the companies currently covered, in particular smaller businesses and individual importers. According to the EU Commission, this measure is expected to exempt around 182,000 importers, mainly SMEs and individuals, from the regulation. Despite this significant administrative relief, according to the Federal Environment Agency, around 99 per cent of CO₂ emissions from the import of these products will remain under the control of the system.
The Federal Environment Agency welcomes the adjustment, as it reduces bureaucracy without diminishing the effectiveness of climate policy. At the same time, it emphasises that CBAM remains an important instrument for protecting European emissions trading from "carbon leakage" – i.e. the relocation of CO₂-intensive production to countries with less stringent climate regulations.
Questions about CBAM? The trade-e-bility consulting team is available to assist you via +49/40/750687-300 or send us an email.
