Parliament and the Council have reached an agreement on changes to the European Union’s carbon border adjustment mechanism (CBAM), aiming to simplify the process for small and medium-sized enterprises (SMEs) and occasional importers. These modifications are part of the “Omnibus I” simplification package introduced in February 2025, which seeks to streamline existing sustainability and investment legislation.
The co-legislators have endorsed a new de minimis mass threshold that exempts imports up to 50 tonnes per importer annually from CBAM rules. This replaces the previous exemption for goods of negligible value, allowing 90% of importers—primarily SMEs and individuals—to bypass CBAM regulations while maintaining coverage for 99% of CO2 emissions from key imports like iron, steel, aluminium, cement, and fertilisers. Safeguards have been included to ensure compliance with these figures and prevent rule circumvention.
Further changes agreed upon include simplifying the authorisation process for imports covered by CBAM, refining emission calculation and verification rules, adjusting financial liability for authorised declarants, and enhancing anti-abuse measures.
Antonio Decaro (S&D, IT), rapporteur on the deal, stated: “The CBAM is designed to prevent carbon leakage and protect Europe’s cement, iron, steel, aluminium, fertiliser, electricity, and hydrogen industries. We have answered calls from companies to simplify and streamline the process and exempted 90% of importers of CBAM goods to facilitate competitiveness and growth for our businesses. As the CBAM will still cover 99% of total CO2 emissions, we have maintained the EU’s environmental ambitions and remain fully committed to a just transition and to achieve climate neutrality by 2050.”
The agreement requires endorsement by both Parliament and Council before it can take effect three days after publication in the EU Official Journal.
The EU’s carbon border adjustment mechanism aims to align carbon pricing between EU products under its emissions trading system (ETS) with imported goods while promoting greater climate ambition globally. In early 2026, there will be an assessment on potentially extending CBAM’s scope to other ETS sectors as well as strategies for assisting exporters facing carbon leakage risks.
