The proposed changes to the EU Carbon Border Adjustment Mechanism (CBAM) for adjusting CO2 limits are part of simplification efforts to reduce the administrative burden for SMEs and occasional importers. As reported by the European Parliament, the Parliament's Committee on the Environment, Climate Change and Food Safety (ENVI) approved the Commission's proposal on 13/05/2025, which is part of the "Omnibus I" simplification package presented on 26/02/2025 (trade-e-bility reported: CBAM simplification planned). MEPs adopted only technical amendments for clarification and endorsed a new threshold of 50 tonnes, which would exempt the vast majority (90%) of importers – mainly small and medium-sized enterprises and private individuals – who import only small quantities of CBAM goods. The environmental objective of the CBAM remains intact as 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers would continue to be covered by the rules. For affected imports, the amendments also simplify the authorisation of declarants (parties wishing to import goods subject to CBAM), the calculation of emissions and the management of financial obligations under CBAM, while strengthening anti-abuse provisions.
Next steps: MEPs adopted the text with 85 votes in favour, 1 against and 1 abstention. On 22 May 2025, Parliament as a whole is to adopt its mandate for negotiations with the Council on the final version of the legislation. In early 2026, the Commission will examine whether the scope of the CBAM should be extended to other ETS sectors where there is a risk of carbon leakage.
Questions about CBAM? The trade-e-bility consulting team will be happy to help you via +49/40/750687-300 or send us an e-mail.
