The European Parliament has approved changes to the EU carbon border adjustment mechanism (CBAM) aimed at reducing administrative requirements for small and medium-sized enterprises (SMEs) and occasional importers. The amendments, which passed with 617 votes in favor, 18 against, and 19 abstentions, are part of the “Omnibus I” simplification package introduced on February 26, 2025.
A key change is the introduction of a new de minimis mass threshold that exempts imports up to 50 tonnes per importer per year from CBAM rules. This replaces the previous exemption based on goods of negligible value. According to Parliament, this measure will exempt about 90% of importers—primarily SMEs and individuals—who bring in small quantities of CBAM-covered goods. Despite these exemptions, officials say that the climate objectives remain intact because 99% of total CO2 emissions from imports of iron, steel, aluminium, cement, and fertilisers will still be regulated under CBAM. The amendments also include safeguards to maintain this coverage rate and strengthen anti-abuse provisions to prevent rule circumvention.
Other changes simplify procedures for those still subject to CBAM requirements. These adjustments affect the authorisation process, emissions calculation methods, verification rules, and financial liability for authorised CBAM declarants.
After the vote, rapporteur Antonio Decaro (S&D, IT) 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 achieving climate neutrality by 2050.”
The legislation must now be formally endorsed by the Council before it can take effect three days after its publication in the EU Official Journal.
The CBAM is intended as a tool to equalise carbon pricing between EU-produced goods—subject to the EU emissions trading system—and imported products. It also aims to encourage higher climate ambition outside the EU. In early 2026, the European Commission plans to review whether other sectors should be included under CBAM rules and how best to support exporters facing risks related to carbon leakage.
