Carbon Border Adjustment Mechanism: Parliament adopts simplifications

On 10 September, the European Parliament approved changes to the EU Carbon Border Adjustment Mechanism (CBAM), aimed at reducing administrative burdens, particularly for SMEs and occasional importers.

A new 50-tonne de minimis threshold will exempt around 90% of importers from CBAM obligations, while still covering 99% of CO₂ emissions from iron, steel, aluminum, cement and fertiliser imports.

Safeguards and anti-abuse provisions will ensure environmental integrity remains intact.

Streamlined procedures for importers still covered include rules on authorisation, emissions calculation, verification and financial liability of CBAM declarants.

The amended law now awaits Council endorsement before entering into force.

CBAM itself will undergo a broader review in 2026, when the Commission will assess its extension to additional sectors.

Some progressive voices in the European Parliament are already starting to work on different ideas for scope expansion, with plastics and chemicals considered as possible options.

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