The European Parliament’s Committee on the Environment, Climate Change and Food Safety has endorsed proposed changes to the EU carbon border adjustment mechanism (CBAM). These changes are aimed at reducing the administrative burden for small and medium-sized enterprises (SMEs) and occasional importers. The proposal is part of the “Omnibus I” simplification package introduced by the Commission on February 26, 2025.
The committee adopted technical amendments for clarification purposes and supported a new de minimis mass threshold of 50 tonnes. This threshold would exempt about 90% of importers, primarily SMEs and individuals importing small quantities of CBAM goods. Despite these exemptions, the environmental goals remain intact as 99% of total CO2 emissions from imports such as iron, steel, aluminum, cement, and fertilizers will still be regulated.
For imports covered under CBAM, the changes aim to simplify authorisation processes for declarants (those wishing to import goods subject to CBAM), streamline emissions calculations, manage financial liabilities associated with CBAM more efficiently, and enhance anti-abuse measures.
Rapporteur Antonio Decaro stated: “A majority in the committee agreed to limit amendments to the specific proposals by the Commission and to not reopen other provisions of the CBAM legislation, which is so crucial to prevent carbon leakage. This approach enables us to simplify matters for companies without dismantling or weakening the CBAM. We will continue to work as fast as possible to bring legal clarity and certainty to all CBAM stakeholders.”
The text was adopted with 85 votes in favor, one against, and one abstention. The full Parliament is scheduled on May 22, 2025, to adopt its mandate for negotiations with the Council regarding finalizing this legislation.
The EU’s carbon border adjustment mechanism aims to equalize carbon pricing between EU products operating under its emissions trading system (ETS) and imported goods while encouraging higher climate ambitions in non-EU countries. In early 2026, an assessment will be conducted by the Commission on whether to extend CBAM’s scope to other ETS sectors at risk of carbon leakage.
