In a significant step toward balancing environmental ambition with economic practicality, the European Parliament has backed today reforms to streamline the EU’s Carbon Border Adjustment Mechanism (CBAM). The proposals are part of the European Commission’s broader “Omnibus I” simplification package introduced earlier this year, reflecting the EU’s intent to enhance administrative efficiency without compromising its climate targets.
The revised rules aim to ease the compliance burden on small and medium-sized enterprises (SMEs) by introducing a de minimis threshold of 50 tonnes. This change would exempt about 90% of importers, particularly smaller and occasional ones, from CBAM obligations—while still covering 99% of carbon emissions linked to imports of carbon-intensive products like iron, steel, aluminium, cement, and fertilisers.
The new approach also brings procedural simplifications, including a more efficient authorization process for CBAM declarants, simplified emissions reporting, and improved management of financial liabilities under the mechanism. In tandem, anti-abuse measures are being reinforced to ensure continued environmental integrity.
According to rapporteur Antonio Decaro, the updated legislation strikes a careful balance and enables simplification for companies without dismantling or weakening the CBAM.
The European Parliament overwhelmingly approved the CBAM simplification proposal with 564 votes in favor, 20 against, and 12 abstentions. The next phase will involve negotiations with the Council to finalize the legislation.
The simplification efforts underline the EU’s dual focus: strengthening the bloc’s climate action framework while safeguarding the competitiveness of European industry.
